Unlocking AfCFTA: Why Logistics is the Key to African Trade Integration
In a powerful contribution to the “African Supply Chain Outlook 2026” webinar, Dr Obiora Madu, Founder and CEO of Multimix Academy and Director General of Africa Centre for Supply Chain, widely regarded as the “grandfather of supply chain in Nigeria”, shifted the focus to the foundational drivers of growth: capacity building and continental integration.
Speaking with the authority of decades of experience, Dr Madu cut through the challenges to highlight Africa’s immense yet untapped potential. His vision for the future goes beyond overcoming obstacles; it is about strategically connecting the continent from within.
“The biggest challenge of the African Continental Free Trade Area is logistics. If you can’t move goods, then you can’t trade.”
He also pointed to new frontiers of opportunity:
“Another big opportunity is in the creative economy, which is services. The negotiation under AfCFTA was for both goods and services. And of course, services are getting bigger than products in international trade; they account for about two-thirds right now. Even the least developed countries are doing a lot more in services than they can in product exports.”
The Untapped Engine of Growth: Intra-African Trade
While many discussions focus on barriers, Dr Madu emphasised the monumental opportunity of the African Continental Free Trade Area (AfCFTA). He argued that unlocking Nigeria’s and Africa’s supply chain potential lies in deliberately harnessing intra-African trade, which today remains hindered by fragmentation.
He outlined three critical enablers paving the way for a more connected future:
- Tariff Reductions under AfCFTA: The agreement is lowering barriers and opening doors for regional trade expansion, making cross-border commerce more viable and profitable.
- Improved Payment Systems: Innovations like AFREXIM Bank’s Pan-African Payment and Settlement System (PAPSS) are game-changers. By reducing dependence on the US dollar, they simplify and secure transactions across borders.
- Service Sector Opportunities: Supply chain growth extends beyond goods movement. He pointed to booming opportunities in education, financial services, and logistics as essential for building a resilient supporting ecosystem.
The Central Pillar: Integration
Asked to summarise his outlook in a single word, Dr Madu’s response was immediate and unequivocal: “Integration.”
For him, true integration is the ultimate goal, achievable only through:
- Policy Alignment between neighbouring nations.
- Customs Harmonisation to smooth the flow of goods across borders.
- Regional Cooperation that prioritises continental collective gain over narrow protectionism.
Key Takeaway: Building Bridges, Not Walls
The perspective provides a strategic counterbalance to more tactical discussions. Where others detail the operational challenges, he offers the framework for addressing them. The path to a resilient 2026 is not isolationist; it is integrational.
The future of Nigeria’s supply chain, and indeed Africa’s, depends on our ability to build bridges rather than walls, through shared policies, innovative financial systems, and collaborative action. By placing integration at the centre, businesses and governments can collectively unlock a new era of prosperity.
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