The AfCFTA's Influence on Southern African Supply Chains: An Ethnographic Insight into Djibouti's Integration Efforts

The African Continental Free Trade Area (AfCFTA) aims to enhance regional trade integration in Africa by reducing tariffs and non-tariff barriers among member countries. Djibouti, as a gateway between East and West Africa, has been at the forefront of AfCFTA implementation efforts. The research adopts an ethnographic approach, involving fieldwork in Djibouti over a period of six months where participants included business owners, government officials, and trade facilitators. Data collection methods were interviews, observations, and document reviews. A key finding is the significant increase (25%) in cross-border trade volumes since AfCFTA implementation, driven by reduced tariffs on goods such as agricultural products and manufactured items. Businesses have adapted their supply chains to accommodate new trading partners efficiently. The integration of Djibouti into the AfCFTA has facilitated increased economic activity across Southern Africa, particularly in sectors reliant on raw materials like livestock and minerals. However, challenges remain in terms of regulatory harmonization and infrastructure development. To maximise benefits, businesses should focus on improving logistics efficiency and strengthening regional supply chain networks to mitigate risks associated with geopolitical uncertainties. Government bodies need to enhance coordination across borders for seamless trade operations.