A report by the International Monetary Fund (IMF) has revealed that the African Continental Free Trade Area (AfCFTA) could increase trade between African countries by over 50%.
Once operational, this zone would have a significant positive impact on trade between Africa and the rest of the world.
Indeed, exports will increase by 29% and imports by 7%, which will allow an increase of “more than 10%” in real median GDP per capita, according to the report.
It should be noted that the agreement to create the FTAA, signed by all African countries, with the notable exception of Eritrea, provides for the gradual elimination of almost all duties.
These customs duties will be eliminated over five years for the most developed countries and over ten years for the others.
The implementation of this zone was initially planned for 1 July 2020 and was actually implemented on 1 January 2021.
In addition, the Fund recalled that to maximise the impact of this agreement, African countries must undertake a series of reforms, including improving the business climate.