Unlocking Africa: LIMA Partners webinar spotlights AfCFTA’s promise for businesses

Africa’s vast potential can only be unlocked through cross-border collaboration, strategic reforms, and smarter use of existing tools, according to tax and trade experts who spoke during a webinar organised by LIMA Partners on Friday, 25 April 2025.

Held under the theme “Unlocking Opportunities Across Africa: Harnessing AfCFTA for Business Growth”, the session spotlighted the African Continental Free Trade Area (AfCFTA) as a transformative vehicle for intra-African trade—if countries and businesses can align policies, processes, and partnerships.

Yamani Selana, Director of Indirect Tax and International Trade at Andersen Global, said, “As a continent, our growth has never really been hindered by a lack of will or ambition.”

Selana noted, “It’s often a lack of access to the right knowledge—and even when knowledge exists, the tools for implementation are not always in place.”

Selana emphasised that many of these tools now exist, thanks to digital innovations and trade reforms, particularly in countries like South Africa. “Company and tax registration can now happen within 24 to 48 hours, all online,” he said, noting that this digitisation helps eliminate red tape and boosts investor confidence.

He pointed to South Africa’s strong banking and judicial systems as additional advantages for investors, highlighting the country’s ability to protect contracts and ensure financial mobility. “Proper money goes through the banking systems,” he quipped, stressing the importance of a regulated financial sector.

On the business front, Selana underscored growth sectors such as automotive, renewable energy, and logistics. Global giants like VW, BMW, and Ford already operate in South Africa, benefiting from incentives tied to customs duties and income tax. Meanwhile, tax breaks for companies engaged in renewable energy signal the government’s commitment to sustainable growth.

“Investors must be confident that infrastructure is in place—and South Africa has made strides,” he said. He also echoed the need for harmonised standards and legal frameworks under AfCFTA to ease cross-border movement and reduce tariffs.

But he cautioned that AfCFTA is not a magic wand. “Africa is not a monolith. Every jurisdiction has its own regulatory, cultural, and linguistic complexities,” Selana said. “To truly unlock intra-Africa trade, businesses must work with local advisors and understand the local terrain.”

Supporting that view was Chinedu Ezomike, Partner and Head of Commercial Practice at Andersen Global in Nigeria. He pointed out the continent’s low intra-Africa trade rate—just 15–17%—compared to over 60% within the EU.

“This is the time to focus on it. We have no choice but to make Africa work,” Ezomike said.

He explained that Nigeria, after initial delays, fully ratified AfCFTA in 2020 and has since implemented reforms through the Presidential Enabling Business Environment Council (PEBEC). These include simplified tax laws, streamlined business registration, and the removal of energy and forex subsidies.

While those reforms triggered inflation and currency devaluation, Ezomike believes they lay the groundwork for future growth. “These are pro-market reforms. The results are starting to show.”

He also touted Nigeria’s vibrant manufacturing, fintech, and agribusiness sectors, as well as its export potential. “Nigerian banks already operate across the continent and are well-positioned to support pan-African businesses.”

However, infrastructure and payment systems remain major hurdles. “It shouldn’t take a trip to Europe to fly from Nigeria to Angola,” he lamented. “We need better connectivity.”

Both speakers called for a continental mindset—backed by local insight. “It’s not enough to do research online,” Selana warned. “You need partners who understand local realities.”

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