+1-254-898-5255 support@mortgageloans.store
Select Page

The African Continental Free Trade Area (AfCFTA) is a free trade agreement entered into by African countries to create a single continental market for goods and services. This agreement was signed in Kigali, Rwanda on 21 March 2018, and officially came into effect on 1 January 2021.

The AfCFTA aims to create a free trade area covering the entire African continent. The agreement includes the free movement of goods, services, capital, and people among African countries. The aim is to enhance economic integration, promote economic growth, and create job opportunities.

The African Continental Free Trade Area is the world`s largest free trade area in terms of the number of participating countries, with 54 African countries signed on. Africa is home to about 1.2 billion people, and the AfCFTA is expected to create a market worth $3.4 trillion that covers the entire continent.

The AfCFTA has the potential to transform Africa`s economies by boosting intra-African trade and increasing Africa`s overall share of global trade. Africa`s current share of global trade is only 2%, and it is hoped that the AfCFTA will increase this to 5% by 2035.

The AfCFTA also has the potential to encourage African countries to diversify their economies and move away from dependence on exportation of raw materials. The free trade area will create opportunities for African countries to add value to their products and services by processing and manufacturing them locally.

However, the AfCFTA faces some challenges, including poor infrastructure, lack of harmonized policies, and political instability in some African countries. Additionally, there are concerns about the ability of African countries to compete with each other, given the differences in levels of development and competitiveness.

In conclusion, the African Continental Free Trade Area is a significant milestone for Africa`s economic development. The free trade area has the potential to transform Africa`s economies by boosting intra-African trade, creating jobs, and increasing Africa`s overall share of global trade. However, for the AfCFTA to succeed, African countries will need to address the challenges they face and work together to build a strong and competitive continental market.