Africa’s Intra-Regional Trade: The AfCFTA’s Potential to Ignite Economic Growth STELLENBOSCH, SOUTH AFRICA – The African Continental Free Trade Area (AfCFTA) is poised to ignite an economic breakthrough across the continent, according to experts.
The agreement, which came into effect in 2021, is designed to connect over 1. 4 billion people and accelerate intra-African trade.
The Stellenbosch Business School’s Jason Hamilton explains that the AfCFTA aims to eliminate up to 90 percent of tariffs and reduce trade barriers. This move is particularly significant as intra-African trade currently stands at around 10 to 15 percent of total trade, compared to Europe’s 50 to 70 percent. Hamilton emphasizes the potential impact of doubling South Africa’s intra-African trade, which could lift up to 50 million people out of extreme poverty. “.
Trade with our neighbours reduces our dependency on decisions made in other regions, “he adds. Despite the AfCFTA’s promising outlook, there are challenges ahead. Harmonizing protocols and ensuring the smooth implementation of the agreement will require coordinated efforts from member states.
The AfCFTA, alongside strategic trade moves by South Africa, such as its recent deal with China, represents a new era of economic integration and diversification for Africa.
As the continent navigates the complexities of the global economic landscape, these agreements could potentially unlock an economic breakthrough, transforming the future of trade and economic development on the continent.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: enca
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