Lessons Learned and Best Practices Towards Implementing the AfCFTA at the Subnational Level
November 28, 2024
The African Continental Free Trade Area (AfCFTA) is one of the most ambitious undertakings in African economic history, aimed at fostering integration, reducing trade barriers, and spurring economic growth across the continent. Launched with the goal of creating the world’s largest free trade area, AfCFTA has the potential to reshape trade dynamics by connecting over 1.3 billion people and a combined GDP of $3.4 trillion. Its success, however, depends significantly on implementation at the subnational level, where local governments, small-to-medium enterprises (SMEs), and communities must engage directly with the new trading framework.
The United Nations Development Programme (UNDP) is at the forefront of supporting AfCFTA’s grassroots integration. Recognizing the challenges and potential of AfCFTA for sustainable development, UNDP has committed resources to awareness raising, training, capacity building, and intergovernmental coordination, ensuring that the free trade area benefits even the most remote communities. This essay examines the lessons learned and best practices identified through early implementation efforts, exploring the critical roles of national coordination offices, local government involvement, and strategic partnerships that facilitate AfCFTA at the community level.
1. Introduction to the AfCFTA and its Relevance to African Economic Growth
AfCFTA seeks to dismantle many of the long-standing trade barriers that have hindered African economies, such as tariffs, non-tariff barriers, and complex regulatory requirements. In doing so, it offers local businesses opportunities to expand, encourages investments seamlessly across borders, and fosters competition that drives innovation. As Prof. Francis Mangeni, economic integration advisor to the AfCFTA Secretariat, emphasized, “Africa is not viable as 55 fragmented economies...but if you combine them, the combined GDP makes us one of the largest economies in the world. We could even be part of the G7.”
The vision for a unified African market is compelling yet requires structured support to translate into actionable benefits at local levels. To this end, UNDP’s involvement in AfCFTA implementation is critical. With its extensive network and experience in local governance, UNDP is instrumental in linking policy with practical support, facilitating the training of local authorities, organizing dialogues, and business trade clusters and building partnerships that bring AfCFTA’s potential to the ground level. As Charleen Moyo, head of solutions mapping for UNDP Zimbabwe’s Accelerator Lab, noted, “This is not about passive observation; it’s about transforming local governance and equipping communities with the tools to navigate this historic transition.”
2. Lessons Learned from Early Implementation Efforts
National Coordination Offices (NCOs): A Model for Effective Collaboration
The experience of Ghana illustrates the value of establishing a National Coordination Office (NCO) to oversee and support AfCFTA’s integration. Ghana’s NCO has become a vital institution, linking the AfCFTA Secretariat with the private sector, and providing businesses with the information and resources they need to trade effectively. Andrew Amegashie, Ghana’s National Coordinating Officer, observed that the NCO acts as “a bridge for communication, coordination, and resource alignment,” offering guidance that directly impacts businesses and strengthens Ghana’s integration into the AfCFTA.
An NCO-like setup in Zimbabwe could serve a similar role, addressing gaps in information flow and aligning strategies across the government, private sector, and local communities. Zimbabwe’s local stakeholders have indicated that a centralized body would streamline resources, ensure consistent messaging, and enable direct channels for private sector concerns to reach policymakers. By connecting policymakers and businesses with real-time information and support, an NCO could enhance the effectiveness of AfCFTA policies across Zimbabwe’s local economies.
Local Government Involvement and the Importance of Decentralization
“AfCFTA presents a transformative opportunity for Zimbabwe, especially at the grassroots level where local businesses and communities can fully engage in the continental marketplace. Our role is to ensure that local government actors and SMEs have the skills, tools, and resources needed to navigate this new landscape. By fostering local engagement and strengthening governance frameworks, we’re building the foundation for an inclusive, resilient economy that benefits all Zimbabweans,” says Tafadzwa Muvingi, UNDP Zimbabwe Transformative Governance Team Leader.
Local governments are at the core of AfCFTA’s implementation, responsible for creating an enabling environment for SMEs and responding to the specific needs of their regions. Zimbabwe’s approach has been to involve local authorities directly, integrating AfCFTA objectives into their economic plans. According to Elina Karwi, Director of Monitoring and Evaluation at Zimbabwe’s Ministry of Local Government and Public Works, “Local authorities are essential for translating AfCFTA’s high-level policies into tangible benefits for the communities they govern, especially in rural areas where most resources and production potential are located.”
To this end, Zimbabwe has taken steps to empower local governments to foster economic participation at the grassroots level. Local authorities have introduced regional economic development strategies that include trade facilitation, small business support, and capacity building for AfCFTA compliance. Such involvement not only encourages more inclusive trade but also mitigates risks of marginalization, ensuring that AfCFTA’s benefits reach rural, peri-urban, and underserved populations. Yet, as Karwi pointed out, “Our local governments need training and resources to support businesses in their communities. Without these, implementation will be slow and less effective.”
Wadzanai Madombwe, a Governance Programme Officer with UNDP Zimbabwe, emphasized that this localized approach is essential for real impact, stating, “The success of AfCFTA in Zimbabwe relies heavily on how well we can integrate local economies into the broader African market. It’s about creating opportunities at the community level, which means providing local governments with both the knowledge and the tools to support this transition.”
Addressing Key Challenges through Strategic Solutions
Despite these advances, several significant challenges persist. These include inconsistent customs procedures across member countries, limited resources for local government implementation, knowledge gaps, financial exclusion, and digital illiteracy among SME operators. During a recent UNDP meeting, a representative from ZIMTRADE expressed that “customs inconsistencies and complex documentation requirements are among the primary barriers for SMEs trying to access new markets under AfCFTA.”
To address these issues, UNDP has promoted the use of digital trade tools and supported the development of partnerships for capacity building. Trade portals and observatories provide SMEs with real-time market information, while collaborative workshops educate business owners on AfCFTA requirements and customs processes. Prof. Mangeni highlighted the importance of these tools: “When businesses have access to data and insights on trade, they’re empowered to make strategic decisions that align with AfCFTA’s objectives.”
One beneficiary, a local business owner who participated in a UNDP-led workshop, shared her experience, saying, “Accessing new markets seemed impossible before, but after attending the UNDP sessions, I have a clear understanding of what’s required to take my products beyond Zimbabwe. The support from UNDP has been invaluable in giving us the confidence to expand.”
3. Best Practices in Supporting SMEs and Local Authorities
Capacity Building and Training: Empowering Local Economies
One of the most impactful practices in AfCFTA’s implementation has been UNDP’s emphasis on capacity building. By organizing training sessions, UNDP enables local authorities and SMEs to understand trade protocols, develop pricing strategies, and strengthen branding. During a recent training, UNDP’s Charleen Moyo emphasized the role of innovation in building local capacities: “We’re not only equipping authorities with technical skills but also fostering a mindset that’s open to innovation, making them better prepared to adapt AfCFTA’s benefits to their specific regions.”
These trainings cover essential topics such as market access, export costing, and trade barrier navigation, all crucial for SMEs aiming to enter new markets. One local entrepreneur who attended the training remarked, “For the first time, I feel like I understand what it takes to expand beyond our borders. The sessions on branding alone opened my eyes to how our products can appeal internationally.”
Market Intelligence and Trade Portals: Enabling Strategic Decision-Making
Access to reliable market intelligence is indispensable for SMEs trying to identify opportunities and assess risks. Tools such as trade observatories and portals give businesses real-time insights into buyer demands, price trends, and compliance requirements, empowering them to make informed decisions. A representative from ZIMTRADE noted, “Our role as a trade promotion organization is to identify demand in foreign markets and to help local businesses position themselves accordingly. This approach saves SMEs time and resources, allowing them to focus on market-ready goods.”
With UNDP’s support, Zimbabwean SMEs now have access to more robust market data, which reduces the uncertainty of cross-border expansion. These portals, coupled with ongoing training, form a support system that allows small businesses to thrive in an increasingly competitive landscape.
Incentives for Local Competitiveness
To foster a more competitive local environment, Zimbabwean local authorities have introduced incentives such as tax breaks and simplified registration processes. These measures not only attract new business but also alleviate some of the financial pressures that SMEs face, making it easier for them to navigate initial trade barriers. During a recent conference, a government official noted, “Local competitiveness starts with policy—if we reduce administrative burdens and offer incentives, we give our local businesses the support they need to compete effectively on a regional scale.”
UNDP continues to work with local authorities to identify additional regulatory adjustments that would benefit SMEs, streamlining licensing and export processes that can otherwise be prohibitively complex. Through these collaborative efforts, Zimbabwe’s local governments are increasingly creating a business-friendly climate conducive to AfCFTA’s objectives.
4. The Role of Engagement and Coordinated Dialogues
UNDP has recognized the need for ongoing, structured engagement and has established platforms for coordinated dialogues. These gatherings bring together a range of stakeholders, from policymakers and local leaders to private sector representatives. Such forums offer a vital space to share knowledge, discuss challenges, and develop solutions to strengthen AfCFTA implementation.
Madombwe commented on the significance of these dialogues, saying, “Engagement is the backbone of AfCFTA’s success. When we bring people together from different sectors, we build a shared understanding that allows us to tackle challenges collectively. It’s a continuous process of listening, adapting, and moving forward together.”
These coordinated dialogues also create a bridge between policymakers and the business community. Through these exchanges, local entrepreneurs gain a voice to communicate the real-world challenges they encounter, while officials can refine policies to better reflect ground realities. A beneficiary at a recent dialogue session noted, “It’s refreshing to be heard and to see that our input is valued. These sessions make a difference because they show that AfCFTA isn’t just for big companies but is also designed to support us as small businesses.”
5. Looking Forward: Opportunities and Next Steps for UNDP’s Engagement
“The potential of AfCFTA to reshape economies across Africa is immense, but it hinges on effective, inclusive implementation. UNDP Zimbabwe is committed to bridging policy and practice, supporting local governments and small businesses to unlock AfCFTA’s benefits. Our goal is not only to support trade expansion but to enable sustainable development, ensuring that Zimbabwe’s journey with AfCFTA brings tangible, lasting improvements to communities across the nation,” says Dr. Ayodele Odusola, UNDP Zimbabwe Resident Representative.
UNDP’s continued role is vital as Zimbabwe navigates AfCFTA’s expanding opportunities. Moving forward, UNDP aims to organize additional workshops on diverse topics, including “Guided Trade Initiatives,” rural infrastructure development, and efficient resource utilization, each designed to equip local governments and SMEs with tools to capitalize on AfCFTA’s benefits.
Madombwe expressed optimism about the next stages, stating, “There’s so much potential here. As we look ahead, our goal is to build on the foundational work we’ve done and scale these initiatives. By creating specialized training and expanding our outreach, we can help Zimbabwe become a model for inclusive trade across Africa.”
UNDP’s approach will also continue to involve close collaboration with National Coordination Offices (NCOs) and local authorities. This alignment facilitates knowledge-sharing and helps synchronize national policies with local needs. As another UNDP facilitator remarked, “Our vision is for Zimbabwe to be a model of inclusive trade, where local economies are not only connected but thrive as part of a larger African market.”
6. Conclusion: AfCFTA’s Potential as a Game-Changer for Africa
The AfCFTA has the transformative potential to reshape Africa’s economic landscape, creating a unified market that can uplift communities and create opportunities for businesses of all sizes. Its success, however, relies on the engagement of all stakeholders, from local governments and SMEs to international organizations like UNDP, working in harmony to overcome challenges and maximize AfCFTA’s benefits.
As Madombwe concluded, “AfCFTA is a chance for Africa to realize its full economic potential, but it requires everyone’s commitment. When we work together, from the grassroots to the policy level, we’re not just building trade agreements but stronger, more resilient communities.”
Through the collective efforts of UNDP, local governments, and community partners, Zimbabwe is making strides toward a more connected, resilient, and competitive economy. The lessons learned and best practices established here provide a model for other nations, underscoring that with sustained