Fragmented logistics systems and regulatory hurdles are preventing the African Continental Free Trade Area (AfCFTA) from reaching its full potential, experts warned at the Casablanca Business Forum 2025, co-hosted by the Financial Times and Casablanca Finance City on Friday.
Ghita Hannae, Morocco Country Officer at the International Finance Corporation (IFC) said that the free trade deal must go beyond its framework. “It needs to be more than a framework, it needs to be implemented, and it needs to be focused on some specific priority areas.”
The World Bank estimates that full implementation of the AfCFTA could raise Africa’s total income by 7–9% by 2035, injecting hundreds of billions of dollars to regional economies.
Beyond promoting intra- and pan-African trade and eliminating tariffs and customs duties, Hannae said countries should prioritize streamlining complex supply chains in sectors such as textiles.
Intra-African trade (trade between African countries) makes up just 13–17% of the continent’s total trade, far lower than the roughly 59% in Asia and 67% in Europe, according to data from Logistics Update Africa.
She cited pharmaceuticals as a key example of regulatory obstacles. “Pharmaceutical products consumed in Angola or manufactured in Ghana are not allowed in Kenya or Mozambique. There needs to be a Pan-African [regulatory framework],” she said.
David Pilling, Africa editor for the Financial Times, highlighted the scale of the logistical challenge, citing companies that struggled to move products between African countries. “There literally weren’t the logistics,” he said.
Echoing Pilling’s remarks, Hannae gave another example from the pharmaceutical industry. “If we look into the pharma sector … to export, you would need to go to France and then go back to Africa. So there are many sectors where logistics is really important, and we need to invest into that.”
“Regional integration is really, really important. It’s something that we really need to accelerate.” She stressed Morocco’s role as a hub and gateway, noting its investment in industrial zones and infrastructure to attract foreign direct investment (FDI).
The session underscored a central paradox: while AfCFTA holds promise to reshape African trade, regulatory fragmentation and inadequate logistics are forcing businesses into costly detours.
Though still in its early stages, the agreement could lift 30–50 million Africans out of extreme poverty by 2035 and has the potential to soar FDI by up to 159% under deeper integration.
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