The UN on Thursday urged Africa to develop clear competition and consumer protection rules for the African Continental Free Trade Area (AfCFTA) to boost trade.

According to Mukhisa Kituyi, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), who spoke at a trade forum in Nairobi, the lack of adequate competition laws leads to distortive practices that undermine cross-border trade.

"We need to have clear competition laws regulating cross-border trade so that businesses and trade can thrive in Africa," he said at a trade forum on the AfCFTA, adding that when large companies use competition laws to their advantage, the main victims are small businesses.

He also noted that small and medium-sized enterprises play an important role on the continent, as they offer the bulk of employment opportunities.

The UNCTAD chief further revealed that there is currently a shift in global value chains, with companies seeking sourcing from local sources.

"This phenomenon has disrupted African companies that had found a niche in sourcing global value chains," he noted.

Kituyi also said the continent-wide free trade regime will contribute to Africa's economic recovery during and after the post-COVID-19 pandemic.

Finally, he noted that Africa is the region that trades the least with itself because of its heavy dependence on international markets for its commodities, finally stating that up to 40% of the goods traded between African countries are value-added products.