SIPHO MAKHUBELA: AfCFTA can transform African economies, but needs the right infrastructure
In much the way that the EU did, it will create a single market facilitating free movement of goods and services
We are living through the first stages of a radical remaking of Africa’s economic landscape. On January 1, the largest global free-trade area in terms of countries participating came into existence, with the potential to transform the continent's economic prospects.
The African Continental Free Trade Agreement (AfCFTA) covers 55 countries that are home to 1.3-billion people and a collective GDP of $3.4-trillion. The agreement’s core aim is the reduction of trade costs. To achieve this it will eliminate 90% of tariffs and focus on the removal of outstanding non-tariff barriers. In much the way that the EU did, it will create a single market facilitating the free movement of goods and services. African economies will achieve greater integration with the world’s supply chains by having their rules about intellectual property, the movement of people and labour, competition issues and investment overhauled...
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