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Africa’s move to ban tariffs

The African Continental Free Trade Area (AfCFTA) has come into effect legally, however, countries that have ratified have a month to decide how the agreement will work.

24 out of 54 African countries have signed the agreement, Africa’s biggest economy, Nigeria is yet to sign. The AfCFTA will make Africa the largest free trade area created since the formation of the World Trade Organisation (WTO) and is intended to particularly benefit SMEs and young people.

It is believed that South Africa will benefit the most from the trade agreement. The credit rating agency, Moody’s said in a report that countries like South Africa, Kenya, and Egypt were likely to benefit the most – this due to their “large manufacturing bases and relatively robust infrastructure, particularly given their access to electricity.”

READ MORE: African Continental Free Trade Agreement

The agreement comes during a time where the trade war between the US and China is escalating. Africa is bypassing tariffs and putting together the world’s largest free trade zone.

 

By: Kgothatso Nkanyane