AfDB, AfCFTA and Africa50 sign MoU to unlock continent’s trade potential

Efforts to tackle Africa's infrastructure gaps have received a significant boost. This follows the signing of a landmark agreement between the African Development Bank Group (AfDB), the African Continental Free Trade Area (AfCFTA) Secretariat, and Africa50.

Announced at the Africa50 General Shareholders Meeting in Maputo, the new Memorandum of Understanding (MoU) aims to tackle the physical and digital infrastructure deficits that have long constrained trade and economic integration across the continent.

By targeting strategic investment and collaboration, the tripartite deal seeks to unlock the full potential of AfCFTA’s $3.4 trillion (Sh439.6 trillion) market, the world’s largest free trade zone since the World Trade Organisation (WTO) was established.

Notably, the agreement sets the stage for unprecedented cooperation to identify, design, construct and maintain critical infrastructure projects across the continent.

With a unified goal of facilitating intra-African trade and accelerating regional integration, the partnership also focuses on developing essential transport corridors, logistics hubs, ports, airports, and cross-border infrastructure.

Despite the AfCFTA's vast potential, intra-African trade still lags behind global regions, accounting for just 15 to 18 per cent of Africa's total trade, starkly contrasted with 68 per cent in Europe and 59 per cent in Asia.

By addressing the infrastructure bottlenecks, the new collaboration aims to significantly boost trade volumes and lower the cost of doing business across African borders.

This, while ensuring the markets are physically and digitally accessible.

Recognising the role of technology in economic transformation, the partnership also plans to invest in cutting-edge digital infrastructure.

This includes building data centres and digital trade platforms to support African enterprises in accessing the global digital economy.

As part of this, the agreement will focus on enabling digital connectivity across trade corridors to enhance competitiveness and foster innovation.

Solomon Quaynor, AfDB’s Vice-President for Private Sector, Infrastructure and Industrialisation, highlighted the Bank’s longstanding commitment to infrastructure.

“AfDB has played a lead role in supporting the development and operation of regional economic corridors throughout the African continent by investing over $55 billion (Sh7.1 trillion) in the last nine years to develop road corridors, ports, railways, and expand power pools to interlink countries and boost trade,” Solomon said.

Between 2014 and 2024 alone, the Bank invested over $8 billion (Sh1.03 trillion) across 109 cross-border economic corridor projects.

Quaynor also emphasised the importance of the new alliance.

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• AfCFTA and Africa50 sign MoU to unlock continent’s trade potential

“The tripartite agreement underscores the paramount importance of realising the full potential of the AfCFTA single market with its combined annual GDP of $3.4 trillion through the establishment of transport infrastructure.”

Alain Ebobissé, CEO of Africa50, echoed this sentiment, saying the partnership would drive the development and financing of trade-enabling infrastructure to boost intra-African trade, one of the continent's greatest endeavours.

The MoU will operate through six strategic pillars, including alignment with AfCFTA policies, identifying bankable projects, mobilising innovative financing, ESG integration, and robust performance tracking.

Over its initial three-year span, the agreement will be implemented through detailed joint work plans and technical working groups.

These will ensure coordination among institutions, alignment with national priorities, and a clear roadmap of projects and timelines.

Crucially, these efforts aim to double intra-African trade to 25 per cent by 2030.