Read on Twitter
One week ago the African Union implemented the world's largest free trade area. Here is everything you should know about the agreement.
A THREAD
A THREAD
The African Continental Free Trade Area is the first opportunity in Africa’s history for states to pursue a future intra-continental trading relationship based on free trade and continued economic liberalisation.
The AfCFTA has been signed by 54 of the 55 AU nations (only...
The AfCFTA has been signed by 54 of the 55 AU nations (only...
Eritrea isn't supportive) and ratified by 37ish (34 have fully deposited the instruments, 3 more pending).
The fact the AfCFTA has gained this much support and went from conception to enactment in under three years is a good sign.
Within 5-10 years (depending on if a...
The fact the AfCFTA has gained this much support and went from conception to enactment in under three years is a good sign.
Within 5-10 years (depending on if a...
nation counts as LDC or not), 90% of tariffs on goods traded between member states will be abolished. Within 13 years, 97% of all tariffs will be removed.
The UN predicts it'll boost intra-African trade by upwards of 52% in a few years. This is good because...
The UN predicts it'll boost intra-African trade by upwards of 52% in a few years. This is good because...
- only about 18% of African exports are traded within Africa, compared to 69% in Europe and 59% in Asia.
- when African states trade with each other, those goods
are three times more likely to be higher-value manufactured products, compared to the goods that leave the...
- when African states trade with each other, those goods
are three times more likely to be higher-value manufactured products, compared to the goods that leave the...
continent. As commodities make up at least 70% of exports in more than 3/4's of African nations, the AfCFTA could help diversify export markets.
The World Bank has estimated by 2035, if fully enacted, the AfCFTA could lift 30 million from extreme poverty, 68 million from...
The World Bank has estimated by 2035, if fully enacted, the AfCFTA could lift 30 million from extreme poverty, 68 million from...
moderate poverty, add $450 billion to regional GDP, and increase average wages for women by 10.5% and 9.9% for men.
Another cool thing about the AfCFTA is that it does demonstrate a steady shift in political ideology on the continent. (Article on this coming soon)...
Another cool thing about the AfCFTA is that it does demonstrate a steady shift in political ideology on the continent. (Article on this coming soon)...
However, it's not all going to be plain sailing.
Many states are clearly not supportive of free trade and have likely signed on to the area in order to have influence around the negotiating table- most notably, Nigeria. This is problematic as it could mean the AfCFTA ends up...
Many states are clearly not supportive of free trade and have likely signed on to the area in order to have influence around the negotiating table- most notably, Nigeria. This is problematic as it could mean the AfCFTA ends up...
diverging from the planned tariff reduction and therefore it'll miss out on the many benefits the FTA could bring.
It's imperative for African politicians, citizens, commentators, and everyone in between to hold their governments accountable to the trade deal they have signed...
It's imperative for African politicians, citizens, commentators, and everyone in between to hold their governments accountable to the trade deal they have signed...
otherwise the potential for African states to benefit from a continentwide FTA will be lost. If this happens, who knows how many decades it could be until an opportunity like this comes up again.
END.
END.
