Staff Writer
The African Continental Free Trade Agreement (AfCFTA) remains one of Africa’s strongest tools for driving economic growth and strengthening the continent’s ability to withstand global economic shocks.
This is according to Stellenbosch Business School guest lecturer in corporate and development finance Jason Hamilton, who said AfCFTA will play a key role as Africa is projected to become the world’s fastest-growing economic region in 2026.
Hamilton said ongoing conflicts in the Middle East and Ukraine have created opportunities for Africa to offer alternative trade routes, markets and investment destinations.
He said AfCFTA, which is creating the world’s largest trading bloc, will also allow African countries to benefit more from growing trade between developing economies.
“In this turbulent climate, trade, finance, and technology are increasingly wielded as strategic weapons, leaving smaller economies exposed to the fallout of decisions made in Washington, Brussels, or Beijing,” he said.
“AfCFTA provides a critical buffer as advanced economies turn inward and geopolitical blocs harden. Regional integration is our safety net. By trading more with our African peers, we become less beholden to the whims of distant powers.”
Hamilton said Africa’s economic outlook remains positive despite global uncertainty.
While many developed economies continue to experience slow growth, African countries account for 12 of the world’s 20 fastest-growing economies.
The African Development Bank forecasts African economies will grow by 4.3% in 2026. This is higher than the World Bank’s global growth forecast of 2.6% and would make Africa the world’s fastest-growing economic region.
“Amid the global turmoil, major African economies have proven resilient, and hotspots in East and West Africa are even slated to grow above 6%. This ‘African resilience’ is no coincidence: it stems from years of structural reforms and a youthful dynamism across the continent,” he said.
Hamilton said infrastructure development, urbanisation, digital transformation, expanding regional markets and stronger participation in global value chains are driving growth across the continent.
He said AfCFTA will help strengthen these trends.
Hamilton also noted the growing importance of South-South trade as demand weakens in developed economies and geopolitical tensions continue to disrupt trade routes and markets.
South-South trade has grown from US$0.5 trillion in 1995 to US$6.8 trillion in 2025.
Today, 57% of exports from developing countries go to other developing economies. More than half of Africa’s exports are destined for developing markets.
Hamilton said AfCFTA has moved beyond policy discussions and is now entering the implementation phase of its goal to remove tariffs and reduce trade barriers across the continent.
The agreement connects a market of 1.3 billion people with a combined economic value of US$3.4 trillion.
According to the United Nations Economic Commission for Africa, full implementation of AfCFTA could lift 50 million Africans out of poverty by 2035 and increase intra-African trade by more than 50%.
