At the Global Africa Business Initiative (GABI) event, which took place in New York last September during the UN General Assembly, Africa's wealthiest man, Alhaji Aliko Dangote, highlighted a key challenge for African business leaders. Despite investing over $600 million in a certain African country, he still needed a visa to enter. Dangote shared that he had to apply for 35 different visas to conduct his business across the continent.

For Dangote and many other African business leaders, the restriction on mobility is a major obstacle. Removing these barriers could unlock the potential of intra-African trade, which currently stands at just 17 percent—far behind Europe's 60 percent.

The African Continental Free Trade Area (AfCFTA), which was introduced in March 2018, aims to boost trade within Africa. With a market of 1.3 billion people and a combined GDP of $3.4 trillion, AfCFTA is expected to significantly increase intra-African trade. The World Bank estimates it could add $450 billion to Africa’s income by 2035, helping to lift 30 million people out of extreme poverty.

The AfCFTA could also expand Africa’s tax base, improving its ability to manage its growing debt, estimated at $1.1 trillion. According to the Brookings Institution, a US-based think tank, the trade pact could help African nations handle their financial challenges.

The AfCFTA’s implementation is progressing well, according to Wamkele Mene, Secretary-General of the AfCFTA Secretariat, speaking at the GABI event. With 54 African Union (AU) member states on board and 48 countries having ratified the agreement, the AfCFTA has shown promise, although challenges remain.

The Importance of Free Movement

A 2023 study by the AU and the UN Economic Commission for Africa (UNECA) underlines that free movement is essential for boosting intra-African trade. However, only four African countries—Benin, The Gambia, Rwanda, and Seychelles—offer visa-free access to all African citizens. In contrast, 33 countries offer visa-free travel to citizens from at least 10 African nations, while 30 countries still require visas for citizens from the majority of Africa.

African leaders themselves support easing movement restrictions. The AU's Agenda 2063, adopted in 2018, envisions a "prosperous and peaceful Africa" and advocates for the free movement of people. In line with this vision, the AfCFTA Secretariat has identified excessive border delays and complicated documentation requirements as barriers that need to be removed for smoother trade across the continent.

However, when the AfCFTA began in January 2021, the free movement protocol was not yet in effect. By October 2024, only 32 countries had signed the protocol, and just four countries—Mali, Niger, Rwanda, and São Tomé and Príncipe—had ratified it. A total of 15 ratifications are required for the protocol to take effect.

Barriers to Implementation

Why are many countries reluctant to ratify the free movement protocol? One reason is the lack of awareness about the economic benefits of increased labour mobility. Greater movement of workers could stimulate trade, foster knowledge transfer, and provide African products and services with better market access.

Additionally, many countries lack the infrastructure to manage migration effectively, raising concerns about security and public health. There are also fears that foreign workers could take local jobs or burden public services, such as healthcare and education.

Visa fees are an important revenue source for many African countries, helping to address budget deficits. Removing these fees could have a short-term financial impact, even if the long-term economic benefits of free movement are greater.

The COVID-19 pandemic has raised further concerns, with some nations worried that lifting travel restrictions could lead to the spread of diseases and complicate public health efforts.

The AU-ECA study highlights the gap between the free movement of persons protocol and the AfCFTA’s focus on the free movement of goods and services. The study stresses the importance of prioritising both aspects of the agreement to ensure the success of the AfCFTA.

The Path Forward

Despite these challenges, there is optimism for the AfCFTA’s success. The AfCFTA’s Guided Trade Initiative (GTI), launched in October 2022, has already expanded to 39 countries, including South Africa and Nigeria. The GTI is a pilot for the AfCFTA’s legal and operational framework, and its success bodes well for broader integration, including the free movement of people.

The Pan-African Payment and Settlement System (PAPSS), launched by the AfCFTA Secretariat and the African Export-Import Bank (Afreximbank), is facilitating cross-border payments in local currencies. PAPSS is gradually gaining traction among traders, reducing the costs of currency exchange and benefiting business leaders who frequently travel across Africa.

Regional economic communities in Africa, such as the East African Community (EAC) and the Economic Community of West African States (ECOWAS), have seen successes in integration, which could provide a model for broader continental cooperation.

In the long term, the pan-African passport, launched in July 2016, could help remove mobility barriers. The AU aims to ensure that African citizens can access these passports, which would be particularly beneficial for women traders, who make up about 70 percent of informal cross-border trade and often face obstacles at border crossings.

With efforts already underway to establish legal frameworks for digital trade, rules of origin, and a dispute settlement mechanism, the future looks promising for the AfCFTA. Mene emphasises that more work is needed to persuade countries to relax restrictions on the movement of people to fully realise the potential of the free trade agreement.