In Africa, the largest free trade area in the world has entered into force

In Africa, the largest free trade area in the world has entered into force

With the advent of 2021, the African Continental Free Trade Agreement (AfCFTA) entered into force. The launch of the world's largest free trade area in terms of the number of countries was expected half a year earlier, but the pandemic of the new coronavirus postponed it. Economists point out that the launch of the free trade area is largely symbolic and that full implementation of the agreement will take several more years.

The coronavirus caused a delay

According to Reuters, AfCFTA will cover a market worth $ 3.4 trillion (2.77 trillion euros) with a population of 1.3 billion. It was originally planned to be launched from 1 July 2020, but the pandemic of the new coronavirus made personal negotiations impossible, which led to the postponement of the entire project. On the other hand, as Silver Ojakol of the AfCFTA Secretariat said, the coronavirus supported the process. "We have seen how the new coronavirus pandemic has hit our economies by disrupting the import of many goods. This has increased the willingness of politicians to strengthen the integration of African states," Ojakol said.

The real work is only beginning now

Almost all of the 55 African countries have approved the AfCFTA Framework Agreement, with the exception of Eritrea. At the same time, 34 African states have ratified it. The World Bank estimates that strengthening trade between African countries could lift tens of millions of people on the continent within 15 years from poverty. For the project to be successful, a large number of obstacles will need to be removed - from extensive bureaucracy through weak infrastructure to strong protectionism from some countries. However, according to W. Gyude Moore, the former Liberian Minister of Public Works, who currently works at the Center for Global Development, real work will only begin now. As he said, it is a process for several decades.