Africa’s free-trade pact will help shift the continent away from its overreliance on volatile commodity exports and boost manufacturing, according to the African Development Bank (AfDB).

Sectors where African products already had a competitive advantage had the most to gain from the deal, which joined the markets of more than 50 countries, making it the largest free trade zone in the world, AfDB president Akinwumi Adesina said in an interview in Niger’s capital, Niamey. This was after Benin and Nigeria signed the African Continental Free Trade Agreement earlier this month, paving the way for trade with reduced tariffs to start next July.

“Manufacturing, trading in value-added products and strengthening supply chains will allow for markets to grow and for new markets to emerge,” Adesina said: “Small and medium-sized enterprises that account for 80% of all trade on the continent will benefit, as well as the financial sector, as digital payments will be needed to transact.”

Commodity exports dominate even in Africa’s two biggest economies, with mining production accounting for about half of South Africa’s shipments, while crude oil generates 90% of Nigeria’s foreign income.

The mechanics of the deal now had to be negotiated. A digital system for payments converging one country’s currency to another member State’s was the most important mechanism to have in place before trading starts, Adesina said. That was where the Economic Community of West African States’ plan to adopt a common trade currency would also help because it could reduce foreign-exchange risks, he said.

Access to the continental market and an increased focus on industrialisation were likely to benefit countries with access to ports, railways and airports the most, Adesina said. The continent’s infrastructure funding needs stood at $130-billion to $170-billion a year, with a financing gap in the $68-billion to $108-billion range, according to AfDB estimates.

“Infrastructure is the most critical aspect,” Adesina said. “If costs of doing trade continue to be high because you have an infrastructure deficit, this will be the biggest challenge.”

The AfDB will provide $4.8-million for member States to set up the trade zone’s headquarters in Ghana.