Africa Trade Agreement 2019

The Africa Continental Free Trade Agreement (AfCFTA) has been making headlines in recent years, with the agreement taking effect on May 30, 2019. As the world`s largest free trade area and covering 1.2 billion people, this agreement is expected to have a significant impact on the African economy and international trade.

The main aim of the AfCFTA is to promote intra-African trade by eliminating tariffs on goods traded between African countries. This is expected to boost trade and investment across the continent, leading to increased economic growth and job creation.

Additionally, the agreement seeks to address non-tariff barriers such as corruption, lack of infrastructure and inefficient customs procedures. By streamlining these processes, it is hoped that trading across borders will become easier and more efficient, ultimately leading to increased prosperity for African nations.

It is important to note that the AfCFTA is not a one-size-fits-all approach, and each country involved will have its specific timeline for implementation. As of May 2019, there were 27 African countries that had ratified the agreement. However, the number of countries participating is expected to increase, ultimately leading to the establishment of a single market for goods and services across the continent.

The AfCFTA is also seen as a way for African countries to increase their bargaining power in international trade negotiations. By presenting a unified front, the continent is expected to better negotiate beneficial trade agreements with partners outside of Africa.

Despite the promising future prospects of the AfCFTA, there are still some challenges that must be overcome. Firstly, there is a need for infrastructure development to support trade across the continent, particularly in transportation and logistics. Additionally, the agreement does not address the issue of non-tariff barriers such as different technical and administrative regulations in each country.

In conclusion, the Africa Continental Free Trade Agreement has the potential to transform the African economy and contribute significantly to global trade. While challenges remain, the AfCFTA is a promising development for the continent and a sign of a brighter future for African nations.