Africa, a continental free trade zone for better economic performance launched by the African Development Bank for African countries.
According to the financial institution, the application of this zone could increase intra-African trade by 15%; a boon for the continent which remains on a good growth dynamic but not very inclusive.
The negotiations that will lead to the creation of the Continental Free Trade Area (CFTA) are an excellent opportunity to improve the living standards of millions of Africans. The jobs and wealth that the CFTA will provide can make a significant contribution to reducing poverty, creating jobs and promoting equality.
The CFTA is more than a commercial agreement. Its ambition – to cover trade in goods, trade in services, investment, competition policy and the defense of intellectual property rights – is a good basis for the continuation of the inclusive structural transformation of African economies, and can therefore contribute to the achievement of Africa’s Agenda 2063 and the 2030 Agenda for Sustainable Development.
The African Continental Free Trade Area (CAFTA) will expand into a single market 1.2 billion people, representing a gross domestic product (GDP) of $ 2.5 trillion in all 55 member states of the African Union. From the point of view of the number of participating countries, it will be the largest free trade world since the establishment of the World Trade Organization Trade (WTO).
ZLECA is also a very dynamic market. According to projections, 2.5 billion African people by 2050, or 26 percent of the population working age, and will see its economy grow twice as fast than that of developed countries.
With average fares of 6.1%, companies are currently facing , higher tariffs when exporting to Africa rather than outside the continent. ZLECA will phase out tariffs on
intra-African trade, which will enable African businesses to negotiate more easily on the continent, to respond to the demands of the African market in full growth and enjoy the benefits offered by the latter.
The integration of the continent into a single trading area offers great opportunities for commercial enterprises and consumers in the whole of Africa and ensures sustainable development in the region. less advanced world. The Economic Commission for Africa (ECA) that the ZLECA could increase intra-African trade by 52.3% by eliminating customs duties on imports, and double it if non-tariff barriers are also reduced.
44 countries sign the Free Trade Area Agreement:
Positive developments have been recorded regarding the prospects for the creation of the ZLECAf by the African Union since the signature of the ZLECAf agreement in Kigali in March 2018. 44 Member States have signed this Agreement. 14 Member States have ratified the Agreement, while only nine (9) countries, including Chad, Ivory Coast, Eswatini, Ghana, Guinea, Kenya, Niger, Rwanda and Uganda formally deposited their instruments of ratification. The other six countries that have not yet signed the ZLEAF Agreement, namely Benin, Botswana, Eritrea, Guinea-Bissau, Nigeria and Zambia, are doing so as soon as possible in order to to ensure the implementation of this flagship project.
Keywords: Africa, News, Economy, CFTA, Trade
Baobab News
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