The economic benefits of the African Continental Free-Trade Agreement (AfCFTA), which is set to come into effect in July, will be substantial if non-tariff trade barriers are dismantled and member states align themselves towards common goals and philosophies. Signed in Rwanda in early 2018, the highly anticipated AfCFTA initiative establishes a single continental market that will allow for the free movement of businesspeople, goods and investments. It covers all 54 member states of the African Union – a market of 1.2-billion people with a combined gross domestic product (GDP) of about $2.5 trillion. The agreement initially requires member states to remove tariffs from 90% of goods. This will boost intra-African trade, which remains exceptionally low at less than 20% of total trade. That compares to 59% and 69% of intra-regional trade in Asia and Europe respectively, according to Brookings Institution.
SOURCE: AFRICA.COM
More Stories
Inside the AAI Gala
Malian Basketballers Apologize for Brawl
Experts at the WTO Public Forum Talk Greening SMEs to Harness the Benefits of the AfCFTA
Dealing with Child Marriages on the Continent
Tighter Controls at Uganda’s Borders
The First Statue of an African Displayed in Trafalgar Square
Ramaphosa’s Opponents Want Him Impeached over a Growing Scandal
‘An Organized Attack on Freedoms by the Remnants of the Old Regime’ – Sudanese Lawyer
A Proposed Ban on the Deployment of Kenyan Domestic Workers to Saudi Arabia
Trial of Guinea’s Former President and Others Accused of the 2009 Stadium Massacre Begins
Essential Medical Supplies at Critically Low Levels in Ethiopia’s Conflict Zone
DRC Apes Kidnapped for Ransom