The Africa Continental Free Trade Area and Regional Industrial Policy Coordination

Background: The operationalization of the African Continental Free Trade Area since 2021 has generated extensive debate regarding its capacity to reshape intra-African trade patterns and industrial development amid global supply chain disruptions and shifting trade alliances. Aims/objectives: This research investigates how participating states are aligning national industrial policies with continental free trade commitments to promote value-added manufacturing and reduce dependence on raw commodity exports. Method: A qualitative policy analysis was conducted using trade protocol documents, national industrialization strategies, and interviews with trade officials from three regional economic communities between 2022 and 2024. Results: The findings show that tariff liberalization alone has not significantly increased manufactured exports, as non-tariff barriers, inadequate transport infrastructure, and inconsistent rules of origin implementation continue to hinder trade facilitation across borders. Countries with pre-existing industrial bases, such as those in the East African Community, demonstrated greater readiness to leverage AfCFTA provisions compared to commodity-dependent economies elsewhere on the continent. Conclusion: The study concludes that successful implementation of the free trade area requires complementary investment in regional infrastructure, harmonized standards, and coordinated industrial policy rather than trade liberalization pursued in isolation. Strengthening institutional capacity at the continental secretariat level is recommended to ensure equitable distribution of integration benefits across member states of varying development levels.

Keywords: AfCFTA, regional integration, industrial policy, intra-African trade, economic diplomacy