While US-China trade tensions continue to escalate, African leaders are celebrating the entry into force of a continental free trade agreement that creates what they call the world’s largest trading market of 1.2 billion people.
The African Continental Free Trade Agreement (AfCFTA) came into force on Thursday after requisite quorum of 24 countries deposited their ratification instruments.
The free-trade deal was confirmed by Albert Muchunga, Commissioner of Trade and Industry for the African Union, via tweet which says the agreement is now in force and that a unified market would be launched July 7.
So far, 52 of the AU’s 55 member states have signed the agreement. Noticeably absent is Nigeria, Africa’s largest economy and most populous country. The country says it needs to consult with domestic economic stakeholders before making a decision.
It’s hoped Nigeria will join to boost intra-African trade in a market of 1.2 billion people worth $2.5 trillion.
When fully implemented, the progressive elimination of tariffs will help boost intra-Africa trade by 60% within three years. The deal will make Africa, the largest free Trade area in terms of geographical area and number of countries involved.
