AfCFTA Risks Failure Without Commitment – Sam Jonah

Mining mogul Sir Sam Jonah has warned that the African Continental Free Trade Area (AfCFTA) risks failure if member states do not follow through on their commitments and improve their economies. Addressing the Global Business Forum in Accra, Jonah emphasized that the AfCFTA – the continent’s flagship trade project – will not be derailed by external forces, but by the lack of progress within Africa itself.

Speaking at the forum, Jonah pointed out that intra-African trade currently stands at a low 15-16 percent of total trade, compared to 50 percent in Asia and 60 percent in Europe. The Ghanaian businessman lamented the continent's reliance on exporting raw materials and importing finished goods, citing the example of Ghana and Côte d'Ivoire's role in the global cocoa industry.

Jonah argued that agreements alone are insufficient to facilitate trade, highlighting the need for practical measures such as improved trucks, ports, payment systems, harmonized standards, and reliable border posts. He emphasized that the AfCFTA requires commitment at every level, from customs halls to boardrooms, and daily decisions by procurement officers.

Jonah also addressed two key threats to the trade pact: competitiveness and xenophobia. He stressed that African economies must earn trade orders by improving competitiveness and that xenophobic incidents, like those in South Africa, can undermine the viability of the free trade area. The mining executive shared his own experience of facing harassment from state agencies in Nigeria, warning that similar treatment of African investors could lead to capital fleeing to other countries.

Jonah warned that Africa is facing a paradox where it exports savings while importing expensive capital, and pension funds are stuck in short-term investments. He urged patience in domestic capital development as no continent has industrialized with rented capital alone. Jonah linked trade and investment to Africa's demographic reality, noting that the continent's young population of 19 can be a dividend or a crisis depending on current decisions.

He called for governments to implement reforms, harmonize and digitize systems, and protect African investors as diligently as foreign ones, urging everyone to "show up with our tools" to turn Africa into a construction site rather than a bequest.