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Back to Issue: No.4, 2025

Impact of economic integration in Africa on regional politics: Analysis of the African Continental Free Trade Area

Gaukhar Rakhimzhanova

Abstract

The study aimed to assess the impact of the African Continental Free Trade Area on the economic, social and political development of the participating countries in the context of global integration. The study analysed the structural features of the African Continental Free Trade Area, including the creation of a single market, tariff reduction, harmonisation of regulatory standards, political coordination and development of intergovernmental mechanisms. According to data for 2024, domestic trade in Africa grew by 51%, exports from 100 to 170 billion USD, investments from 20 to 48 billion USD, employment grew from 5% to 11%, the share of domestic trade from 15% to 32%, and investment in infrastructure from 10% to 21%. The poverty rate decreased from 40% to 28%. Governments in some countries, including Kenya, Nigeria and South Africa, have expanded investments in infrastructure, social services, digitalisation, agriculture and education. The African Continental Free Trade Area has also prioritised regional integration, in particular through coordination with the Economic Community of West African States, the Southern African Development Community, and the East African Community, supporting inter-bloc cooperation, lowering trade barriers and synergies in regulatory regimes. At the same time, challenges ranging from political instability to uneven development of institutions were identified. The African Continental Free Trade Area stimulates the unification of legislation, the development of small and medium-sized businesses, institutional growth, and the harmonisation of legal systems, including the simplification of business registration procedures and the introduction of e-government. The findings highlighted that the African Continental Free Trade Area not only promotes economic growth, but also has the potential to enhance social stability, gender equality, export diversification and political integration. At the same time, the implementation of the agreement remains uneven, and its effectiveness depends on the harmonisation of regulations, the functioning of digital platforms and the development of sectoral initiatives

Keywords

political stability; competitiveness; entrepreneurship; infrastructure projects; social stability

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Suggested citation

Rakhimzhanova, G. (2025). Impact of economic integration in Africa on regional politics: Analysis of the African Continental Free Trade Area. Foreign Affairs, 35(4), 88-97. https://doi.org/10.59214/2663-2675.35(4).2025.88
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