Addis Ababa, January 24, 2026 (ENA) – Global trade disruptions and supply chain disruptions leave Africa with no choice but to deepen economic integration and build its own domestic markets, said AfCFTA Secretary-General Wamkele Mene.
Speaking at the AfCFTA Friends of the AfCFTA breakfast on the edge of the World Economic Forum (WEF), Mene stressed the need to accelerate economic integration, free up domestic capital and negotiate more strategically with global partners.
He said decades of market fragmentation have constrained Africa’s economic potential, despite its size and resources.
He said Africa operates with 42 currencies, has limited industrial development and contributes less than 3 percent to world trade.
According to the African Development Bank (AfDB), infrastructure financing needs are estimated at around $150 billion annually, while transport, logistics and trade finance costs remain high.
Even outside blocs such as ECOWAS and the East African Community, cross-border movement of people remains difficult, he noted.
“This is not sustainable,” Mene said, noting that Africa has a population of 1.4 billion and a combined GDP of $3.4 trillion in consumer and business spending.
He said African leaders responded by establishing the AfCFTA, which has now been ratified by 50 countries, demonstrating strong political determination to reduce barriers to trade and investment within Africa. Intra-African investment currently stands at just 4%.
Mene said the negotiations mandated by African heads of state are complete and the continent is now moving from negotiation to implementation, with a focus on reducing infrastructure, logistics and financing costs, especially for young people and small and medium-sized enterprises.
The push for the AfCFTA comes at a time of what Mene described as an “unprecedented attack” on the multilateral trading system, marked by shrinking global markets and disrupted supply chains.
“This is a compelling moment for Africa to say, with global markets drying up and supply chains disrupted… let’s build our own domestic markets,” he said, adding that integration could take more than a decade, but Africa has no alternative.
By the end of this century, Africa is expected to have the world’s youngest and largest workforce, making market integration critical to job creation and economic inclusion, Mene said.
Regarding capital flows, Mene pointed out that while the AfCFTA facilitates trade in goods and services, it does not directly regulate the movement of capital.
Governments that ratify the agreement are obligated to facilitate capital flows, but domestic regulations, exchange controls, and central bank approvals continue to restrict cross-border investment.
He said further engagement with Africa’s central banks was needed to align trade ambitions with financial regulation.
Mene also pointed out that illiquid domestic capital held by African pension funds, sovereign wealth funds and similar institutions is estimated at $800 billion.
In this regard, he argued that the decline in foreign development assistance requires African governments to work more closely with the private sector to mobilize these resources.
He said multilateral development banks and development finance institutions have tools such as guarantees and political risk insurance that can help attract private capital and finance industrial development in Africa.
On critical minerals, Mene said the African Union had developed a continental strategy, but implementation remained weak as governments continued to negotiate unilaterally with external partners.
He said Africa’s diverse mineral resources require a tailored investment approach, but there must be common principles to guide negotiations with third parties.
“We are not there yet,” Mene said, adding that he hopes the current global environment will accelerate coordinated implementation.
Mene also expressed concern about Africa’s approach to trade negotiations with major partners, noting that the African Union, unlike the European Union, does not have the legal authority to negotiate trade agreements as a single bloc.
He noted that African countries being drawn into bilateral negotiations with the United States is weakening the continent’s bargaining power.
“That is not in Africa’s interest,” Mene said. “We must negotiate collectively…but as it stands, we still do not have the legal authority to do so.”
