The Continental Free Trade Area (AfCFTA) agreement will create the largest free trade area in the world in terms of the number of participating countries. The pact connects 1.3 billion people in 55 countries for a total gross domestic product (GDP) of $3.4 trillion. It has the potential to lift 30 million people out of extreme poverty, but achieving its full potential will depend on the introduction of meaningful political reforms and trade facilitation. These projects, in coordination with European, Japanese and Indian partners, could have a significant impact on economic growth in Africa and on Africa`s expansion as an external market for goods and services. As is currently believed, Prosper Africa will be a single point of contact for increasing trade and investment between U.S. and African companies. The initiative has clear links with afCFTA and, if fully implemented and adopted, could bring benefits to both players. Yulia Vnukova advises the World Bank in the Department of Trade and Regional Integration (ETIRI). Based on more than a decade of experience, Yulia`s current work focuses on trade policy and regional integration, focusing on macroeconomic and microeconomic analyses of trade, trade and sectoral competitiveness, global value chains and private sector development in emerging countries in Europe, Asia and Africa. Basically, AfCFTA will put African economies – and African citizens – on a better economic footing. The agreement will improve competitiveness and promote investment, innovation and economic growth by improving efficiency and removing trade barriers. In fact, it will eliminate tariffs on 90% of goods and gradually apply the same to services, at a time when other parts of the world are reconsidering trade agreements and economic integration. In particular, the abolition of tariffs on goods is expected to increase the value of intra-African trade by 15-25% by 2040.

That would be between $50 billion and $70 billion. He said Africa`s prosperity depends largely on intra-African trade. “Increased trade is the safest way to deepen regional integration in Africa. free download. Take advantage of Adobe Acrobat Reader for free to view this PDF Ghana`s Minister of Trade and Industry Alan Kyerematen listed the benefits of a free trade area in Africa, including an increase of up to 52% in intra-African trade by 2022, consolidation of currently fragmented markets, economies of scale, added value of Africa`s natural resources and economic diversification. South Africa, Sierra Leone, Namibia, Lesotho and Burundi have since signed afCFTA at the 31st African Union Summit in Nouakchott. [50] Since July 2019, 54 states have signed the agreement. [51] Eritrea has not signed because of tensions with Ethiopia, but after the 2018 Eritrea-Ethiopia summit, the AU Commissioner for Trade and Industry now expects Eritrea to sign the agreement. [93] Paul Brenton is the principal economist of the World Bank`s Trade and Regional Integration Unit (ETIRI). It focuses on analytical and operational work in the area of trade and regional integration.

Posted Tuesday, April 13th, 2021 at 2:11 am
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