A majority of African CEOs are optimistic about the African Continental Free Trade Area (AfCFTA), with 72% believing it will have a positive impact on their businesses, according to a survey by PwC.

The survey, which was conducted among 500 CEOs in 30 African countries, found that the most common benefits expected from the AfCFTA are increased access to new markets (63%), reduced trade costs (59%), and increased investment opportunities (56%).

The CEOs are also optimistic about the impact of the AfCFTA on job creation, with 68% believing it will lead to more jobs in their countries.

However, the CEOs also identified some challenges that need to be addressed in order to fully realize the benefits of the AfCFTA. The most common challenges identified were infrastructure gaps (66%), trade barriers (61%), and regulatory differences (58%).

The CEOs also called on governments to do more to support businesses in taking advantage of the AfCFTA. The most common areas of support requested were information and training (65%), access to finance (63%), and help with market access (61%).

What you need to know:

The survey results suggest that the AfCFTA has the potential to have a significant positive impact on African businesses and economies. However, there are some challenges that need to be addressed in order to fully realize these benefits. Governments need to play a role in supporting businesses in taking advantage of the AfCFTA, and CEOs need to be prepared to adapt to the changing trade landscape.

Here are some specific ways that governments can support businesses in taking advantage of the AfCFTA:

• Provide information and training on the AfCFTA and how to benefit from it.
• Help businesses to access finance to support their trade activities.
• Assist businesses with market access, such as identifying potential customers and partners in other African countries.
• Reduce trade barriers and regulatory differences between African countries.
• Invest in infrastructure to improve trade connectivity.

CEOs can also take steps to prepare for the AfCFTA, such as:

• Conduct market research to identify opportunities in other African countries.
• Develop a business plan for expanding into new markets.
• Invest in compliance with the AfCFTA’s rules and regulations.
• Build relationships with potential customers and partners in other African countries.