The newly established African Continental Free Trade Agreement (AfCFTA) is on record the biggest regional economic integration formed in Africa. It is the largest single market for goods and services which also encourages free movement of people and investment in the member countries. The agreement will boost economic growth and create more jobs as it will encourage growth in SMEs and increased manufacture of goods and services by developing better regional value chains. The AfCFTA will contribute $70 billion to the continent’s GDP and ensure most of the $2 trillion African economy is traded internally. The agreement will benefit most countries at large, but especially the big players in the continent including Kenya, Angola, Egypt, Nigeria, and South Africa. Systems should, however, be put in in place to protect the small players to keep them from exiting.
Dear D –
Have you been wondering what the growth prospects of South Africa are? While the country has been fighting an anemic economic growth coupled with a high rate of unemployment, the AfCFTA will serve as the new hope for exporters to explore new markets. 85% of South Africa’s exports go to the Southern Africa Development Community (SADC), but the agreement will now give her a chance to diversify. As at now, South Africa imports only 9.9% of goods from Africa. The new deal will help her access cheaper imports from Africa, even as the country seeks to prioritize trade in Africa in line with its National Development Plan and 2018/2019 Industrial Policy Action. With her sophisticated and well established industrial sector, South Africa is the country that those looking to invest should watch. Read more at African Business Magazine