Trade Without Borders - African Continental Free Trade Area

The unveiling of the African Continental Free Trade Area (AfCFTA) agreement on January 1, 2021 in Accra, Ghana, was one of the most strategic collaborations on the continent towards unlocking the economic strength of member nations, driving an ecosystem for the creation of a single market for goods and services and deploying the power of effective partnership for a collective growth. The World Trade Organization (WTO) has described the 54-nation agreement as the largest trading bloc since the Organization was formed, as it connects a massive 1.3 billion population across Africa. It was also built around removing tariffs from 90 per cent of goods traded across the continent which according to the International Monetary Fund (IMF) could boost trade in Africa by 15-25% in the medium-term. Promoters had envisaged the AfCFTA agreement to have the capacity of creating a $3.4 trillion economic bloc, in addition to deepening the economic integration of the continent, establish a liberalised market through multiple rounds of negotiations,

aid the movement of capital and people, facilitate investment, move towards the establishment of a future continental customs union and achieve sustainable, as well as inclusive socio-economic development, gender equality and structural transformations within member states. Cheeringly, nearly three years after its establishment, the AfCFTA has made significant progress in achieving its purpose, anchored on the easy shipment of goods from one country to the other, offering value to individuals and businesses, putting money in peoples’ pocket and improving their general livelihood in an inclusive manner; with small scale farmers, traders and women smiling to the bank. For instance, coffee has been traded from Rwanda to Ghana, a deal being promoted by a company with primary focus on supporting women who produce coffee. Also, batteries have been traded under the AfCFTA from Kenya to other countries in Africa. Tea had equally been traded from Kenya to other African countries, especially from small holder farmers, which indeed confirms that the AfCFTA is working and is improving livelihoods. >>