This is a big news for the African continent as it will now allow for free trade across the continent, increasing trade among countries which should have always traded between themselves. This is what was envisioned by Kwame Nkrumah, all the independence fathers, and more recently by Muammar Kadhafi (Africans and the Trap of Democracy) at the AU: so it is high time it took place. I just pray that this actually works, and that it is not just a way for European goods which already go through some African countries without any tax or control (French speaking Africa), to flood Africa’s biggest economies. The excerpt is from the BBC; to read the full article go to the link.
African superpower Nigeria has signed an agreement which aims to increase trade between African countries….
Nigerian President Muhammadu Buhari signed the landmark agreement at the African Union (AU) summit in Niger. The first step is to cut tariffs for goods from countries within the bloc but the timeframe to do this is yet to be announced.
The AU says that the African Continental Free Trade Area – called AfCFTA – will create the world’s largest free trade area. It also estimates that implementing AfCFTA will lead to around a 60% boost in intra-African trade by 2022.
Only 16% of international trade by African countries takes place between African countries, according to research by the African Development Bank in 2014.
At the moment some of that intra-Africa trade ranges from fresh fish from the Seychelles to petrol from Angola.
[…] Nigeria is Africa’s biggest economy and has long been a regional leader […]
Nigeria has a lot to gain from increasing access to its goods and services to a wider African market. But many of those consulted also feared increased regional integration would lead to unfair competition for jobs and the goods they produce.
With Nigeria signed up, AfCFTA’s dream of increasing intra-Africa trade, which currently lags behind the volume of trade the continent does with Europe, is now one step closer.
Now that AfCFTA can offer access to the enormous Nigerian market, they are in a much stronger position to negotiate with regional bodies in other parts of the world.