The World Bank says the African Continental Free Trade Area could increase real incomes across Africa by 7–9 percent and lift about 40 million people out of extreme poverty by 2035.

Launched in January 2021 among African Union member states, the AfCFTA is designed to create a single market for goods and services across the continent.

However, in its April 2026 Africa Economic Update, the World Bank indicated that the expected gains from the agreement have not yet been realised.

The report stated that unlocking the benefits of the AfCFTA will depend on leading countries driving implementation, alongside stronger monitoring, enforcement of commitments, and investment in regional public goods.

“While tariff reductions under the AfCFTA will help intraregional trade, the most significant constraints stem from internal trade costs,” the report said.

According to the Bank, these constraints include weak transport and logistics infrastructure, inefficient customs and regulatory systems, low levels of digitalisation, and high domestic financing and logistics costs.

It also highlighted the continued presence of non-tariff barriers, such as selective export bans, across several countries.

The World Bank further noted that the second phase of the agreement should prioritise areas including investment, intellectual property, competition policy, and the participation of women and youth in trade, with a focus on addressing these internal challenges.

Despite its long-term potential, the Bank cautioned that progress under the AfCFTA is expected to be gradual due to the scale of investment required and the need for broader institutional and regulatory reforms.