How logistics can drive AfCFTA implementation

The CEO for Africa at Agility, Geoffrey White, believes that large-scale industrialization will be crucial for the successful implementation of the African Continental Free Trade Agreement (AfCFTA). White emphasizes the pivotal role that improved logistics will play in this journey towards harnessing the full potential of the continent's trade opportunities. In a recent interview with CNBC Africa, White discussed how the logistics sector can drive the implementation of the Continental Trade Act. He highlighted the challenges faced by African countries in terms of infrastructure and the high costs associated with moving goods within the continent. White pointed out that in Africa, logistics account for a staggering 70% of the cost of goods, significantly higher than the 6% in more developed regions like the US. This logistical constraint limits the market access for African producers and hampers the growth potential of businesses across the continent. However, White sees a promising future with the AfCFTA creating a single market of 1.3 billion people, presenting vast opportunities for African businesses to expand their reach and thrive in a more integrated trade environment.