Expanding Africa’s trade frontiers

Lewanika Timothy | Tuesday June 16, 2026 11:38

The continent is pushing ahead with the African Continental Free Trade Area (AfCFTA), an ambitious agreement designed to create a single market for over than 1.4 billion people and unlock new opportunities for businesses across the continent.

At the centre of efforts to turn that vision into reality is the International Trade Centre (ITC), a joint agency of the United Nations and World Trade Organisation dedicated to helping small businesses access international markets. The agency is led by Pamela Coke-Hamilton, a veteran trade expert who has spent decades working on trade policy, market access and private sector development.

In this interview with Mmegi, Coke-Hamilton discusses the opportunities presented by AfCFTA, why Africa must focus on value addition and industrialisation, and what countries such as Botswana need to do to compete in regional and global markets.

Mmegi: Africa has spoken about economic integration for decades. What makes AfCFTA different?

Coke-Hamilton: The AfCFTA is different because it creates, for the first time, a framework for a truly continental market. Africa has many small economies and fragmented markets. Individually, countries often struggle to attract large-scale investment or build competitive industries. Together, however, Africa becomes one of the largest markets in the world.

The agreement provides an opportunity to increase intra-African trade, strengthen regional value chains and create industries that can compete globally. It gives African businesses access to a much larger customer base than their domestic markets alone can provide. The real opportunity is not simply trading more products across borders, but producing more goods on the continent and keeping more value within Africa.

Mmegi: Intra-African trade remains relatively low compared to Europe and Asia. What is holding Africa back?

Coke-Hamilton: There are several challenges. Infrastructure remains a major constraint. Moving goods across African borders can still be expensive and time-consuming. We also have regulatory barriers, customs procedures and information gaps that make it difficult for businesses, especially small enterprises, to trade across borders.

Another challenge is that many African economies export similar raw commodities rather than complementary manufactured goods. To increase intra-African trade, countries need to build productive capacity and diversify what they produce. Trade and industrialisation must move together. Without industrialisation, the benefits of AfCFTA will be limited.

Mmegi: Botswana has long sought to diversify away from diamonds. How can AfCFTA help?

Coke-Hamilton: Botswana already has a reputation for stability, good governance and sound institutions. These are significant advantages. AfCFTA gives Botswana access to a much larger market for products and services beyond its borders.

The key question is identifying sectors where Botswana can build competitive advantages. This could be in agro-processing, financial services, tourism-related services, manufacturing niches or digital industries. Investors are increasingly looking for opportunities that can serve regional markets rather than single countries. AfCFTA makes Botswana more attractive because businesses can potentially use it as a base to access wider African markets.

Mmegi: In many African countries like Botswana, Small and Medium Enterprises (SMEs) often struggle to export. How important are they to Africa’s trade ambitions?

Coke-Hamilton: They are absolutely central. Small businesses account for the majority of enterprises and jobs across the continent. If SMEs are not participating in trade, AfCFTA will not achieve its full potential because ultimately it is businesses that trade, not governments.

Many SMEs face challenges related to finance, standards, market information and logistics. Our role at ITC is to help them overcome those barriers. We work with businesses to understand export requirements, identify opportunities and connect with buyers. We also support women-owned and youth-led enterprises because inclusive trade creates stronger and more resilient economies.

Mmegi: One criticism of African economies is that they continue exporting raw materials while importing finished products. What practical pathways exists for them to tap into value chain integration?

Africa has abundant natural resources, agricultural products and human talent. The challenge is transforming those resources into higher-value products before they leave the continent.

That requires investment in manufacturing, technology, skills development and infrastructure. It also requires countries to work together. Not every country needs to produce everything. There is room for regional value chains where different countries specialise in different stages of production. The important thing is that more of the value remains in Africa.

Mmegi: Global trade is becoming more uncertain, with rising tariffs and geopolitical tensions. Does this strengthen the case for AfCFTA?

Coke-Hamilton: Absolutely. We are seeing significant shifts in the global trading environment. Countries are becoming more conscious of supply chain resilience and market diversification. For Africa, this reinforces the importance of strengthening trade within the continent.

AfCFTA provides a mechanism for African countries to reduce their vulnerability to external shocks. A stronger regional market creates opportunities for businesses even when global conditions become more difficult. It also gives Africa greater collective influence in international trade discussions.

Mmegi: What role does digital trade play in Africa’s future?

Coke-Hamilton: Digital trade is a tremendous opportunity because it can help overcome some of the traditional barriers associated with geography and distance. A small business in Botswana can potentially reach customers across the continent through digital platforms.

However, success will require investments in connectivity, digital infrastructure and skills. We must also ensure that small businesses can participate effectively in the digital economy rather than being left behind.

Mmegi : Looking ahead, what would success for AfCFTA look like over the next decade?

Coke-Hamilton: Success would mean seeing more African products on African shelves. It would mean stronger regional value chains, more industrial activity, more jobs and greater participation by women and young entrepreneurs in trade.

Most importantly, it would mean that Africa is no longer viewed primarily as a supplier of raw materials but as a competitive producer of goods and services. AfCFTA provides the framework to achieve that transformation. The challenge now is implementation. The agreement exists; the task is ensuring that businesses are able to use it and benefit from it.