Cotonou, Benin
African businesses face steep non-tariff trade costs that threaten to undermine the continent’s free trade ambitions, despite progress in opening regional markets, according to a report launched at the Africa Think Tank Summit in Cotonou, Benin.
The Africa Export Competitiveness Report 2025 estimates that non-tariff costs on goods traded between African countries average the equivalent of 292% of their value, highlighting barriers that continue to constrain cross-border commerce.
The report was launched by African Capacity Building Foundation (ACBF) Executive Secretary Mamadou Biteye during the summit, held from Oct. 28-30, 2026.
Developed jointly by ACBF, Shared Value Africa and the Institute for Competitiveness, the report assesses 44 African economies, up from 40 in the previous edition and 30 in the inaugural study.
The findings raise concerns about whether the African Continental Free Trade Area (AfCFTA) can deliver its intended economic benefits without stronger action to address the practical barriers businesses face.
Infrastructure and regulations drive trade costs
Approximately 60% of Africa’s trade costs stem from behind-the-border constraints, including weak logistics, regulatory differences, fragmented standards and inadequate infrastructure, according to World Bank research cited in the report.
These barriers increase the cost of moving goods between countries, limiting businesses’ ability to take advantage of preferential market access.
The report finds that trade policy explains roughly 30% of the variation in actual export performance, underscoring the importance of productive capacity, infrastructure, skills, investment and institutional effectiveness.
It argues that signing trade agreements and reducing tariffs are insufficient unless businesses can navigate customs procedures, meet product standards, transport goods reliably and complete cross-border payments.
The findings highlight an implementation challenge facing the AfCFTA as African governments seek to translate market-opening commitments into increased trade and industrial growth.
The report identifies three stages critical to the agreement’s success: participation, readiness and utilization.
While participation creates legal trading opportunities, readiness requires countries to establish functioning systems. Utilization depends on businesses being able to access markets and benefit from preferential arrangements.
Africa struggles to capture export value
The report also highlights Africa’s limited position in global trade despite its substantial natural resources and expanding markets.
Africa accounted for just 2.63% of global merchandise exports in 2025, while primary goods represented 76.7% of the continent’s merchandise exports.
The disparity is particularly evident in the clean-energy sector.
Although Africa supplies approximately 75% of global manganese and 70% of cobalt, it captures less than 1% of the value generated by manufacturing clean-energy technologies and their components.
The report identifies industrial processing, manufacturing, investment in skills and stronger production networks as essential to increasing the value African economies retain from their resources.
During the launch, Biteye linked the findings to broader efforts to strengthen South-South collaboration and increase African participation in future research and analysis.
The report argues that the next phase of African trade integration must move beyond creating market access to ensuring businesses can use it.
