AFRICA, A CONTINENT DIVIDED AGAINST ITSELF? HOW THE SAHEL IMPORT LEVY THREATENS AFCFTA’S FREE TRADE ASPIRATIONS

INTRODUCTION

Africa stands at a critical economic crossroads. The African Continental Free Trade Area (AfCFTA), launched in January 2021, represents the continent’s boldest integration effort to date, promising to unite 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at $3.4 trillion.[1] Yet even as the ink dries on this historic agreement, recent regional developments threaten to undermine its very foundation. The newly introduced Sahel Import Levy by the military led junta of Mali, Niger and Burkina Faso (the Alliance of Sahel States) now poses a significant threat to the pan-African vision of “borderless trade.”[2]

This recent display of “protectionism”[3] raises pertinent questions about Africa’s economic future to wit; Can the continent overcome present efforts at division and build a truly unified market? Or will regional interests continue to outweigh the broader vision of African economic unity?

THE AfCFTA VISION: A SINGLE MARKET FOR AFRICA

The AfCFTA (the ‘Agreement’) represents the realization of decades of pan-African economic aspirations,[4] promising to fundamentally reshape the continent’s future. At its core, the AfCFTA’s mandate centers on dismantling the trade barriers that have historically divided and barricaded Africa’s economic landscape, with the explicit goal of stimulating intra-continental commerce and in the long run, improving Africa’s global competitive position.  As aptly noted by Caroline Freund, a Dean of the UC San Diego School of Global Policy and Strategy and formerly the Global Director of Trade, Investment and Competitiveness, “Creating a single, continent-wide market for goods and services, business and investment would reshape African economies. The implementation of AfCFTA would be a huge step forward for Africa, demonstrating to the world that it is emerging as a leader on the global trade agenda.”[5]

In addition to the above, it is worthy of note that this ambitious framework has objectives that transcend just the “elimination of trade barriers and boosting intra-Africa trade”.[6] The AfCFTA also looks to prioritize value-added production across all economic sectors, recognizing that Africa’s future prosperity depends on moving from the exportation of raw materials to the manufacture, production and exportation of “finished goods”[7]. By facilitating the development of regional value chains, the agreement hopes to create conditions where African businesses can effectively collaborate across borders, leveraging their complementary strengths and specializations.[8]

Together, these interconnected objectives form a comprehensive strategy for sustainable economic development that recognizes trade liberalization not as an end in itself, but as an important first step to creating a “more integrated and competitive African economy, transforming the structure of production and consumption.”[9]

THE SAHEL ALLIANCE: A REGIONAL DEPARTURE

In September 2023, Mali, Niger and Burkina Faso, three countries experiencing similar political trajectories following military coups formed the Alliance of Sahel States (AES). This alliance represents a significant geopolitical shift, with the three states withdrawing from the Economic Community of West African States (ECOWAS) in January 2024.[10]

However, its implications have quickly expanded beyond the “simple political restructuring/shift”. Recently, the alliance announced the creation of a new import levy, ostensibly designed to “finance the activities” of the AES.[11]

The new levy imposes a 0.5% levy on goods from ECOWAS nations[12]  entering these three countries but according to sources, will not include humanitarian aid.[13]

THE FUNDAMENTAL DEPARTURE FROM THE AfCFTA VISION

In light of the above, it goes without saying that the Sahel Import Levy stands in direct contradiction to the core principles of AfCFTA.  These contradictions include:

1. The Imposition of Tariff Barriers

Firstly, while the AfCFTA aims to “eliminate tariffs and reduce non-tariff barriers to achieve trade liberalization” within Africa[14], the Sahel Import Levy undoubtedly creates new tariff barriers. This fundamental contradiction means that goods imported into Mali, Niger or Burkina Faso face additional costs that directly undermine the AfCFTA’s core promise of free movement of goods within the continent.

2. Regional Fragmentation/division

The AfCFTA’s vision centers on dissolving Africa’s patchwork of regional trade agreements into a coherent continental framework. This is even more evidenced in Article 3 of the Agreement where it is provided as follows:

“The general objectives of the AfCFTA are to:

(a) create a single market for goods, services, facilitated by movement of persons in order to deepen the economic integration of the African continent and in accordance with the Pan African Vision of “An integrated, prosperous and peaceful Africa” enshrined in Agenda 2063;” [15]

Meanwhile, the AES in contrast, creates yet another regional bloc with distinct trade rules, precisely the type of division the AfCFTA seeks to overcome.

NIGERIA’S STANCE: ADVANCING ECONOMIC INTEGRATION

In a stark contrast to the Sahel’s protectionist trend, Nigeria, Africa’s largest economy, on the 14^th of April, 2025, officially gazetted and transmitted the ECOWAS Schedule of Tariff Offers, essentially confirming that Nigeria will grant preferential tariff treatment to all “eligible” goods upon importation, in line with its commitments under the AfCFTA agreement.[16]

This noteworthy decision demonstrates Nigeria’s commitment to the continent’s economic integration and hopefully creates momentum for other nations to follow suit. Dr. Jumoke Oduwole, Nigeria’s Minister of Industry, Trade and Investment, in emphasizing the importance of this step, stated thus: 

“As Nigeria commences on our implementation review of five years of AfCFTA, we have been reflective on the journey so far. What is clear is that Nigerian entrepreneurs are more than ready to take on the challenge to move across borders. To celebrate this feat, we are supporting them as a government with everything needed, including the implementation of the tariff gazetting for our AfCFTA schedules. The gazetting and transmission of the ECOWAS Schedule of Tariffs to the AfCFTA Secretariat signals Nigeria’s readiness for trade under the agreement. This milestone enables Nigerian exporters to leverage preferential tariff access across African markets, positioning Nigeria as a key player in regional and global trade, and underscores Nigeria’s dedication to leveraging Africa’s single market for economic transformation. After initiating its first shipment under AfCFTA in July 2024, Nigeria has solidified its leadership in regional trade and integration with the formal gazetting of the Schedule of Tariffs for Trade in Goods to ensure Nigerian goods can access other markets competitively and profitably.” [17]

The contrasting approaches of Nigeria and the AES highlight the divergent paths being taken across the continent. Undoubtedly, Nigeria’s decision to sign the ECOWAS tariff offers, represents a vote of confidence in the AfCFTA framework and demonstrates how regional integration and trade relations can serve as building blocks for continental integration.[18] Most notably, Dr. Akinwumi Adesina, the President of the African Development Bank, in a lecture delivered at the 14^th convocation ceremony of the National Open University of Nigeria (NOUN) stated thus;

“………….. The continent should also accelerate the implementation of the African Continental Free Trade Area. By trading more between themselves, with a common external tariff, the African countries can boost trade and investments on the continent and expand the share of intra-Africa trade. In addition, Africa should diversify its export markets through more favourable trade agreements.”[19]

DIPLOMATIC RIPPLE EFFECTS

The Sahel Import Levy has triggered diplomatic tensions that extend far beyond economic considerations. In expressing his concerns, Dr Madu Obiora, the Director-General of the African Centre for Supply Chain, stated thus;

“Trade within Africa is already very poor, especially when compared to other continents. Africa has the lowest intra-continent and regional trading numbers in the world. However, instead of looking for new ways to dismantle old tariff and non-tariff barriers, new barriers are being erected on top of the old ones. Our regional trade is going to suffer even more.”[20]   

The actions of the AES could inadvertently exacerbate existing security concerns, not only in terms of trade but also across multiple sectors. As Dr Madu Obiora noted, “Those countries complained that nothing was done about insecurity across the sub-region, but this move will likely fuel insecurity and cause additional disruptions in cross-border trade. The three countries are landlocked nations and in retaliation, other countries might go on to impose counter-tariffs on them, increasing the cost of movement of goods across countries, which is already very expensive.”[21]  This growing friction risks escalating into a broader trade conflict, reminiscent of the ongoing “trade war” between the United States of America and China[22]. A similar dynamic in Africa, could stifle economic growth and aggravate existing geopolitical tensions across the continent. In view of this, Nigeria’s commitment to the AfCFTA framework is of utmost significance. As the continent’s most populous nation and largest economy, Nigeria’s active engagement within the AfCFTA could serve as a diplomatic counterweight to the rising tensions. By championing the agreement’s principles, Nigeria has the potential to encourage other hesitant or even opposing nations to reconsider their positions and hasten the implementation of the agreement. This collective commitment could mitigate the risk of a full-blown trade war within Africa, fostering instead an environment of cooperation and shared economic prosperity.

CONCLUSION

The disparity between the Sahel Import Levy and the AfCFTA’s mandate encapsulates Africa’s never-ending struggle to balance self-governance with shared prosperity and in the midst of division create a truly unified market. How this contradiction resolves itself will shape the trajectory of the continent’s economic future.

What is clear, however, is that the stakes in this unfolding drama extend far beyond a trade dispute. How Africa resolves these tensions will determine whether the continent can overcome its history of division to leverage its combined strengths in a rapidly evolving global economy. Success would mean transforming Africa from a collection of small, isolated markets into a unified economic powerhouse capable of taking its rightful place at the helm of global affairs.

In the humble opinion of the writers, Nigeria’s step toward integration is a decisive step in the right direction as in the immortal words of Kwame Nkrumah, “Africa must unite or perish.”[23] African leaders today are faced with the monumental task of translating this vision of unity into practical reality, navigating legitimate national concerns while steadfastly moving toward the greater integration of the continent, a path that we must always remember requires patience, compromise and above all, a shared conviction that Africa’s destiny lies in collective action rather than isolated endeavours.

Please note that the foregoing does not in any way constitute legal advice. Please kindly contact the key contacts for any legal advice on the subject matter.