ABUJA, Nigeria (CU)_Following the economic downturn induced by the COVID-19 pandemic, African countries began officially trading under a new continent-wide free trade agreement on January 1.
The African Continental Free Trade Area (AfCFTA) is expected to be the largest free trade area since the establishment of the World Trade Organization, as it aims to bring together 1.3 billion people in a $3.4 trillion economic bloc.
However, experts say the recent launch is largely symbolic while its full implementation is anticipated to take years. Other concerns include poor road and rail links, political unrest, excessive border bureaucracy, petty corruption and widespread red tape within the region, which must be overcome if the bloc is to reach its full potential.
Nevertheless, the World Bank estimates the initiative could lift tens of millions out of poverty by 2035.
Although trading under the AfCFTA was meant to be launched on July 1, this was delayed after the pandemic made in-person negotiations impossible, while experts also say the pandemic gave the process added impetus.
“COVID-19 has demonstrated that Africa is overly reliant on the export of primary commodities, overly reliant on global supply chains,” Wamkele Mene, Secretary-General of the AfCFTA Secretariat said. “When the global supply chains are disrupted, we know that Africa suffers.”
Every African country except Eritrea has signed on to the AfCFTA framework agreement, while 34 of these member countries have ratified it.
The agreement requires members to phase out 90% of tariff lines, over five years for more advanced economies or 10 years for less developed nations, and it is reported that 41 of the bloc’s 54 member states have already submitted tariff reduction schedules.
