1/20/2026
Davos Discussion Highlights What Africa Expects of the AfCFTA to Scale Its Job Engine
WEF and AU-linked research suggests that without AfCFTA-enabled value chains, African economies will continue to compete individually and weakly in global markets.
Africa’s Job Engine
Urban Naija
Davos Discussion Highlights What Africa Expects of the AfCFTA to Scale Its Job Engine
davos-discussion-highlights-what-africa-expects-of-the-afcfta-to-scale-its-job-engine
Davos, Switzerland — At a recent discussion on “Africa’s Job Engine,” at the World Economic Forum (WEF), African leaders, policymakers, and business executives delivered a clear message. They emphasized that the African Continental Free Trade Area (AfCFTA) must now move beyond symbolism and become a working, continent-wide engine for jobs and industrial growth.
Signed by 54 African countries and operational since 2021, the AfCFTA is already the world’s largest free trade area by number of participating nations.
But speakers at Davos stressed that the agreement’s success will no longer be measured by ratifications or protocols alone. It would now be measured by whether African businesses can actually trade, scale, and hire across borders.
During a discussion at the WEF, AfCFTA was framed not just as a trade deal, but as a jobs strategy for a continent. It was also highlighted that Africa still has one of the fastest-growing youth populations in the world.
The expectation is that a functioning single African market will enable job creation and poverty reduction. Making Africa a competitive place to produce goods and deliver services at scale was highlighted as an obvious pathway.
Also, without a major shift to allow firms to grow beyond small national markets, speakers warned, Africa risks having growth without sufficient employment. This scenario is already playing out in several economies young Africans are unable to gain formal work due to unsustained employment.
Industrialisation and Regional Value Chains
A central theme of the discussion was the need for faster industrialisation. AfCFTA is expected to help African countries move away from exporting raw materials and instead build regional value chains. This model will enahnce manufacturing, processing, logistics, and services distribution across multiple countries.
Under this model more value is added inside Africa, rather than offshore. Additionally, manufacturing hubs can emerge based on comparative advantage and jobs are created not only in factories, but across transport, finance, technology, and services.
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