Localising the AfCFTA: The Role of Local Governments in Regional Trade Implementation

Abstract

This paper examines the role of local governments in implementing the African Continental Free Trade Area (AfCFTA) and promoting inclusive regional trade integration in Africa. It explores how subnational governments can support local economic development, enhance the participation of micro, small, and medium-sized enterprises (MSMEs), and align local development planning with continental trade goals. The study is grounded in Multi-Level Governance (MLG) and Institutionalist theories, which explain how different governance levels interact in the implementation of trade. It uses a qualitative, literature-based design drawing on secondary sources such as academic studies, policy documents, institutional reports, and case studies from Ethiopia, South Africa, Uganda, and Ghana. The analysis focuses on themes including governance capacity, institutional coordination, infrastructure, trade facilitation, and stakeholder engagement. Findings indicate that local governments are central to enabling trade through infrastructure development, MSME support, local economic planning, and stakeholder coordination. However, their effectiveness is limited by weak institutional capacity, restricted fiscal autonomy, insufficient technical expertise, and poor coordination with national governments. Case studies show that where local governments are actively integrated into trade governance systems, they improve export readiness, strengthen local value chains, and enhance inclusive market participation. The paper concludes that effective AfCFTA implementation depends on localising trade governance through stronger multi-level coordination, institutional capacity building, and integration of trade priorities into local development strategies. It argues that empowering local governments is essential for achieving inclusive industrialisation and balanced territorial development across Africa.