January 12, 2021 | 0 Comments
The African Continental Free Trade Area formally launched on January 1, 2021 covering over 1.2 billion people in 44 countries in Africa. Of these, 34 countries have ratified the agreement to date.
It is expected to add USD 50Billion to intra African trade in the first two years, as tariffs on 90% of goods have to be reduced and then eliminated in 2 years, while certain items will see phased reduction over the next 3-5 years.
Still, high cost of transport and poor infrastructure will take some years to resolve despite huge global investments over the last decade. The ease of intra African movements means that the addressable market size of any farming or industrial project will greatly expand. One should see tremendous new investments in the coming years.