AfCFTA and infrastructure key in unlocking investment opportunities

Africa, with its vast potential and untapped resources, is on the brink of a transformative economic shift. The continent's journey towards prosperity is heavily reliant on closing its infrastructure gap, estimated to require $70-100 billion annually. Recent agreements on digital trade under the African Continental Free Trade Area (AfCFTA) are acting as a safeguard for African economies, attracting investments from a wide array of stakeholders, including foreign investors, African entities, and diaspora communities. CNBC Africa's Akinkumi Obakeye recently had the opportunity to sit down with Tsotetsi Makong, Director of Coordination & Programmes at AfCFTA, during the Africa Prosperity Dialogues 2025 in Accra, Ghana. Makong shed light on the pivotal role of infrastructure and trade in unlocking investment opportunities across the continent. Makong emphasized the vital link between trade and infrastructure, likening them to twins that cannot be separated. He articulated the pressing need for infrastructure development in Africa, highlighting the staggering annual financing requirement of $70-110 billion. This significant figure underscores the scale of the challenge at hand and the immense opportunities for investment in the infrastructure sector. Makong urged a shift in narrative, reframing the discourse from a deficit-focused perspective to one that underscores the vast business prospects awaiting investors in the infrastructure space. Beyond traditional hard infrastructure such as roads and telecommunications networks, Makong underscored the importance of soft infrastructure, including quality assurance facilities for testing goods. He emphasized the intricate interplay between infrastructural development and the realization of the AfCFTA's objectives, stressing the need for a holistic approach that encompasses both physical and soft infrastructure. The AfCFTA serves as a pivotal legal instrument that not only promotes intra-African trade but also acts as a form of insurance for investors. Makong highlighted the agreement's dispute settlement mechanism, which holds member countries accountable to the highest standards. This legal certainty provides businesses with recourse in case of non-compliance, offering a level of security and assurance for investors venturing into African markets. The AfCFTA's recent adoption of a protocol on digital trade further reinforces its commitment to fostering a conducive environment for commerce. The agreement's provisions on public digital infrastructure set a high bar for member countries, compelling them to fulfill their commitments and adhere to the agreed-upon standards. Makong emphasized that the market created by AfCFTA is not only open to development partners but also welcomes foreign investors, African enterprises, and diaspora communities, leveraging the agreement's legal framework to mitigate risks and spur investment. The alignment of the AfCFTA's legal architecture with de-risking strategies lays a solid foundation for sustainable and impactful investment projects across various sectors. In conclusion, the AfCFTA's role in shaping Africa's economic landscape cannot be overstated. By bridging the infrastructure gap and fostering a conducive investment environment, the agreement is paving the way for sustainable growth and prosperity on the continent. As Africa continues on its path towards economic transformation, leveraging the synergies between trade, infrastructure, and investment will be crucial in unlocking the continent's vast potential and ushering in a new era of prosperity.