On December 30, 2018, history was made with the signing of the African Continental Free Trade Area (AfCFTA) agreement in Niger. This historic agreement reduces trade barriers between 54 African nations, creating a single market of over 1.2 billion people and a combined gross domestic product of over $2.5 trillion.
The AfCFTA agreement aims to remove tariffs on 90 percent of goods traded within the African continent. It also seeks to create a free trade zone that will allow goods and services to move freely across borders, leading to increased economic integration and job creation.
This agreement will have a significant impact on the continent, as it will help to lower the cost of doing business and increase intra-African trade, which is currently significantly lower than intra-regional trade in other parts of the world. Trade between African countries currently stands at 16 percent, compared to 60 percent in Europe and 30 percent in Asia.
The AfCFTA agreement is a significant achievement for African leaders who have been working towards this goal for several years. It is also a significant step towards the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 – Decent Work and Economic Growth, and SDG 9 – Industry, Innovation and Infrastructure.
The AfCFTA agreement is expected to boost Africa`s economic growth by up to $450 billion by 2035, making it the world`s largest free trade zone. It will also help to reduce poverty and inequality, promote regional integration, and enhance competitiveness.
While the AfCFTA agreement is a significant achievement, it is not without challenges. Implementation will require investment in infrastructure, technology, and human capacity. There is also a need for countries to adopt harmonized trade policies and regulations that are in line with the agreement.
The AfCFTA agreement has the potential to transform Africa`s economic landscape, and it is up to African leaders to ensure that it is implemented successfully. With the right policies and investments, the AfCFTA agreement could be the key to unlocking Africa`s economic potential and creating a better future for its people.
