A global movement for women in trade

The African Continental Free Trade Area (AfCFTA) offers a unique opportunity to catalyse growth across Africa by broadening and enhancing market access. By strengthening regional value chains and streamlining trade facilitation processes, the AfCFTA agreement holds the potential for substantial advantages for both businesses and individuals – paving the way for unprecedented growth. 

The International Trade Centre estimates the target market of the AfCFTA at 1.27 billion people, projected to rise to 1.7 billion by 2030, with about 600 million classified as middle class. Additionally, Africa’s aggregate GDP is expected to soar to USD 6.7 trillion in purchasing power parity terms. Intra-African trade is projected to grow by 52.3% by 2022, with global trade increasing by 6%. The AfCFTA is expected to attract an estimated USD 4 trillion in investment and consumer spending. Beyond these numbers, the AfCFTA has the potential to make a concrete impact on the lives of ordinary citizens across the continent by facilitating job creation and enhancing the regional competitiveness of African small and medium-sized enterprises (SMEs) in lucrative markets. 

Despite its vast potential, the AfCFTA benefits remain largely untapped, particularly in Nigeria. Nigeria, Africa’s largest economy, has yet to fully engage in trading under the agreement, highlighting the urgency and necessity of effective implementation. Effective execution of the AfCFTA agreement is essential to maximise its benefits and ensure that all segments of society, especially women, are equipped with the necessary tools and resources to thrive in this new era of expanded trade and investment opportunities. The African Continental Free Trade Area (AfCFTA), by fostering economic integration, can also serve as a vehicle for meaningful income redistribution that empowers women and addresses historical inequities. For instance, implementing the AfCFTA could increase wages for women by 10.5%. 

To fully unlock the benefits of the AfCFTA, it is crucial to address the barriers that women face, including limited access to finance, market information, and challenges in formalising cross-border trading. A 2022 report by UN Women, UNDP, and the AfCFTA Secretariat highlights significant challenges faced by women small business owners, with over 31.9% reporting violence or aggression, particularly in informal cross-border trade, of which 70% is carried out by women. A targeted approach is required to ensure women can capitalize on the opportunities presented by the agreement. This includes capacity building, access to markets, trade facilitation, business networking, investment opportunities, and digitalization.