Sessie 8: Balancing global integration and local
responsiveness in volatile markets: Lessons from
Regional Trade Blocs and the AfCFTA
Regional Trade Blocs
What you already know:
- Europese Unie
- ASEAN → Association of Southeast Asian Nations: is een politieke en economische
unie van 11 Zuidoost-Aziatische landen
- Integration logic
→ But not ALL Regional Systems are the same!:
- Different levels of institutional development
- Different regulatory environments
- Different levels of coordination
Unlocking Africa's Economic Potential: Leveraging the African Continental Free Trade
Area (AfCFTA)
De African Continental Free Trade Area (AfCFTA): is de grootste vrijhandelszone ter wereld
gemeten naar aantal landen met als doel om één grote Afrikaanse markt te maken.
Introduction to AfCFTA
AfCFTA:
- AfCFTA brings together all 55 member states of the African Union, covering over 1.3
billion people and a combined GDP of more than $3.4 trillion USD.
- Objectives:
- Enhance Trade: "Increase intra-African trade through better harmonization
and coordination of trade liberalization."
- Economic Integration: "Contribute to the movement towards the
establishment of a future continental customs union."
- Developmental Goals: "Promote industrial development through
diversification and regional value chain development, agricultural
development, and food security."
Rationale
Consolidating a fragmented market:
- Africa is a big market, fragmented into small pieces
- 22 African countries have populations under 10m
- Trade is frustrated by 107 unique land borders between 54 states
- Rules diverge across: regulatory standards, competition,
investment intellectual property rights, and services – making the
scaling of business across borders difficult
- AfCFTA consolidates Africa into $2.3 trillion market of 1.3bn people
- Creates market opportunities, scale economies, improved
competition, lower business costs
, Taking advantage of Africa’s market growth:
- 6 of top-10 fastest growing economies were African in 2025
(IMF afDB reports, 2025) Bank Reports
- Population expanding from 1.3bn in 2020 to 2.8 bn by 2060
- GDP forecast to grow from $3tr in 2020 to $16tr by 2060
Diversifying Africa’s exports:
- Few countries have developed without industrialising
- Yet in 21st century, Africa struggles with industrialization, instead remaining
economically oriented around raw material extraction
- Intra-African trade helps: 70% of exports outside
the continent are extractives, while less than
40% within are extractives
AfCFTA - Addressing longstanding trade facilitation challenges?:
- African Costs of Transportation are 63% higher than developed countries
- Freight Costs as % of Import Value are 11.4% for Africa vs. 6.8% for developed
countries
- Customs Transactions include: 20-30 different parties, 40 documents, 200 data
elements
- Customs Processing Delays
- can cost $185 per consignment for each day of delay
AfCFTA - Cohering African trade policy?:
→ Consolidating Africa position against:
- Mega-regional trade agreements
- protectionism
- new trade issues
- enhanced trade negotiations
responsiveness in volatile markets: Lessons from
Regional Trade Blocs and the AfCFTA
Regional Trade Blocs
What you already know:
- Europese Unie
- ASEAN → Association of Southeast Asian Nations: is een politieke en economische
unie van 11 Zuidoost-Aziatische landen
- Integration logic
→ But not ALL Regional Systems are the same!:
- Different levels of institutional development
- Different regulatory environments
- Different levels of coordination
Unlocking Africa's Economic Potential: Leveraging the African Continental Free Trade
Area (AfCFTA)
De African Continental Free Trade Area (AfCFTA): is de grootste vrijhandelszone ter wereld
gemeten naar aantal landen met als doel om één grote Afrikaanse markt te maken.
Introduction to AfCFTA
AfCFTA:
- AfCFTA brings together all 55 member states of the African Union, covering over 1.3
billion people and a combined GDP of more than $3.4 trillion USD.
- Objectives:
- Enhance Trade: "Increase intra-African trade through better harmonization
and coordination of trade liberalization."
- Economic Integration: "Contribute to the movement towards the
establishment of a future continental customs union."
- Developmental Goals: "Promote industrial development through
diversification and regional value chain development, agricultural
development, and food security."
Rationale
Consolidating a fragmented market:
- Africa is a big market, fragmented into small pieces
- 22 African countries have populations under 10m
- Trade is frustrated by 107 unique land borders between 54 states
- Rules diverge across: regulatory standards, competition,
investment intellectual property rights, and services – making the
scaling of business across borders difficult
- AfCFTA consolidates Africa into $2.3 trillion market of 1.3bn people
- Creates market opportunities, scale economies, improved
competition, lower business costs
, Taking advantage of Africa’s market growth:
- 6 of top-10 fastest growing economies were African in 2025
(IMF afDB reports, 2025) Bank Reports
- Population expanding from 1.3bn in 2020 to 2.8 bn by 2060
- GDP forecast to grow from $3tr in 2020 to $16tr by 2060
Diversifying Africa’s exports:
- Few countries have developed without industrialising
- Yet in 21st century, Africa struggles with industrialization, instead remaining
economically oriented around raw material extraction
- Intra-African trade helps: 70% of exports outside
the continent are extractives, while less than
40% within are extractives
AfCFTA - Addressing longstanding trade facilitation challenges?:
- African Costs of Transportation are 63% higher than developed countries
- Freight Costs as % of Import Value are 11.4% for Africa vs. 6.8% for developed
countries
- Customs Transactions include: 20-30 different parties, 40 documents, 200 data
elements
- Customs Processing Delays
- can cost $185 per consignment for each day of delay
AfCFTA - Cohering African trade policy?:
→ Consolidating Africa position against:
- Mega-regional trade agreements
- protectionism
- new trade issues
- enhanced trade negotiations
