The African Union is spearheading key initiatives aimed at bolstering economic integration and sustainability across Africa, emphasising the expansion of intra-continental trade, the creation of independent financial mechanisms and renewed focus on growth that benefits citizens amid global instability.
Deepening the continental market through AfCFTA
The African Continental Free Trade Area remains central to the AU’s economic strategy. Designed to unify the continent into a single market of 1.3 billion people, progress continues on reducing tariffs and facilitating local currency payments. The trade area, managed by the AU’s secretariat, supports trade growth, domestic manufacturing and long-term competitiveness. Forecasts suggest intra-Africa export potential could rise by over 80 per cent if fully implemented. However challenges persist, including underdeveloped infrastructure, inconsistent regulatory systems and a shortfall in investment of over $100 billion annually.
Building a financial safety net amid debt stress
Africa’s external debt has surged over the past decade, sparking concern among member states. In response, the AU, under Angolan leadership, is advancing the African Financing Stability Mechanism. Modelled on the European Stability Mechanism, the initiative seeks to create a $3 billion capital fund to refinance debt and provide preemptive support – potentially saving member countries up to $20 billion in servicing costs in the next decade. The mechanism aims to foster macroeconomic reform and long-term fiscal resilience.
Countering credit bias and developing homegrown institutions
To improve Africa’s access to global capital, AU-affiliated bodies are working to offset the influence of dominant global credit ratings. The AU supports the launch of a continent-based credit agency to provide fairer assessments of African economies, challenging negative narratives perpetuated by established agencies. Parallel efforts under Agenda 2063 include establishing key financial institutions such as an African Investment Bank, a Pan-African Stock Exchange, a continental monetary fund and central bank—aiming to shift financial sovereignty toward African ownership and control.
Prioritising inclusive growth through Agenda 2063
In alignment with the AU’s long-term vision, Agenda 2063 sets priorities such as poverty eradication, industrial transformation, infrastructure development and youth employment—all sectoral objectives underpinned by greater regional integration. The first AU Economic Report, themed “Growth, employment and inequalities”, underscores the need for policies that generate sustainable, inclusive growth that benefits citizens evenly across regions.
REFH – Newshub, 2 September 2025
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