Collective Action: The Catalyst for Unlocking Africa’s Trade Potential

By Michael Sudarkasa

Recently, I had the privilege of speaking at the Cross Border Trade Strategic Conversations Summit, hosted at the Regenesys Education Campus in Sandton, Johannesburg. As part of the Lived Experiences Panel, I addressed a hybrid audience – both in-person and online – on the critical role that collective action by businesses can play in realizing the promise of the African Continental Free Trade Area (AfCFTA).

One of the key points I emphasized was the enduring wisdom in the proverb: “If you want to go fast, go alone; if you want to go far, go together.” In the realm of international trade, size truly matters – and one of the most effective ways for companies to enter new markets is through sector-wide collaboration.

Industry associations are uniquely positioned to lead this charge. By pooling resources, they can conduct joint market research, participate in trade shows, and vet potential agents, distributors, or buyers – thereby significantly reducing the cost and risk of business development across borders.

There is a growing need for industry organizations across Africa to take intentional steps toward creating frameworks that support their members in forging meaningful trade partnerships within the continent.

Technology as an Enabler of Trade Expansion

The digital revolution has also made this task easier than ever before. Artificial intelligence and other technological advancements have dramatically leveled the playing field, offering affordable and accessible tools for market analysis, regulatory compliance, logistics, and even cross-border payment systems.

What once took weeks and significant investment to uncover can now be achieved with just a few clicks – making it an opportune time for African businesses to explore regional opportunities.

I also stressed the importance of setting clear targets and taking decisive action. The AfCFTA is not a distant vision – it is unfolding now. With increasing competition in key markets, companies must act swiftly to secure their place in this evolving landscape.

One strategic opportunity lies ahead: the upcoming Intra-Africa Trade Fair, scheduled for September in Algiers, Algeria. This event serves as a vital platform for companies and governments alike to connect with key players, discover available resources, and chart pathways for business expansion across the continent.

Progress and the Path Forward

Encouragingly, momentum around intra-African trade continues to build. According to recent data, intra-African trade grew by 7.7 percent in 2024, reaching a total value of US$208 billion.

Regionally, Southern Africa remains the most integrated, followed closely by West and East Africa. Notably, South Africa, Egypt, and Nigeria – three of the continent’s top four economies by GDP – continue to drive much of this growth.

While these developments signal progress, we are still only at the beginning of what the AfCFTA can achieve. To fully unlock its transformative potential, we need more champions on the ground – more businesses willing to step up, collaborate, and engage.

What Africa needs now is fewer spectators and analysts, and more doers and implementers.

The future of African trade is being written today. Let’s ensure it’s authored by those ready to build it – together.

Michael Sudarkasa is a commercial attorney and African economic development expert. He is the CEO and founder of Africa Business Group, a South Africa-based consultancy focused on business development, agriculture, renewable energy, and capacity building. With extensive experience in private sector growth, trade, investment, and corporate finance across Africa, he has authored publications on African trade and investment and previously led the African Fertilizer and Agribusiness Partnership (AFAP). He also serves on multiple boards and advisory panels in the economic development and impact investment sectors.