In 2015, African countries spent about US$63 billion on food imports, largely from outside the continent. In agriculture, intra-African agricultural trade is particularly underexploited owing to high import tariffs, other non-tariff barriers (such as health and safety standards), low productivity, and a lack of rural connectivity. Those looking to enlist support for the agreement have the tough task of demonstrating how the AfCFTA will leverage various individual markets for the benefit of multiple sectors. The analysis also shows that least developed countries are expected to experience the largest growth in intra-African trade of industrial products-up to 35% higher in 2040 compared to just 19% for developing African e.įirst, however, Africa must navigate the largest political consensus-building effort since the formation of the African Union in 2002. Recent modelling from the UN Economic Commission for Africa (ECA) projects the value of intra-African trade to be between 15% and 25% higher in 2040, compared to without AfCFTA. Such liberalization is expected to provide strong impetus for intra-African trade. Eventually, free movement of people and a single African air transport market could grow within the newly created free trade area. The AfCFTA brings together 1.3 billion people, and a combined gross domestic product (GDP) of more than $2 trillion. If ratified by each country, it will become one of the world’s largest trading blocs.ĪfCFTA commits countries to remove tariffs on 90 percent of goods, progressively liberalize trade in services, and address a host of other non-tariff barriers, like long delays at national borders which hamper trade between African countries. In March, African leaders took a major step forward when 44 of 54 African nations signed the African Continental Free Trade Area (AfCFTA), the biggest trade agreement signed since the World Trade Organisation (WTO) was established. ![]() ![]() Recently, progress has come knocking-and loudly. But when it comes to trade, Africa is the least integrated region in the world, where intra-African exports were 18 per cent of total exports in 2016. In order for more than 400 million Africans to rise out of poverty, continued economic growth across Africa’s 54 nations will have to increase an average of 7% annually or more.
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