Is Africa ready for a Continental Free Trade Area ?
The African continental free trade area (AfCTA) has long term goals that will integrate African Union Countries through trade.
In March 2017, African leaders from 44 African nations gathered at the African Union Summit signed the continental free trade agreement (AfCFTA) in Kigali, Rwanda, and signed the Continental Free Trade Area (AfCFTA) creating the largest single market globally, in terms of the number of member states. The UN Economic Commission for Africa (UNECA) estimates that the implementation of the agreement could increase intra-African trade by 52% by 2022.Under the AfCFTA, countries commit to remove tariffs on 90% of goods produced within the continent.
AfCFTA offers opprotunity of economic growth and sustainable development but countries will not benefit uniformly.
According to UNCTAD , most of the benefits of further trade integration like welfare benefits from lower import prices, higher value-added jobs and exports, technological specialization will materialize in the long term, while most of the associated costs of adjustment and integration especially loss in trade tariff revenue, diminishing small medium enterprises at local levels due to high competition, unemployment adjustments, infrastructure development and political and regulatory reforms will be incurred in the short term.
