Rwanda, May 15 – Rwanda became the latest country, alongside Niger to confirm the African Continental Free Trade Area Protocol. The two add up the tally to four countries now, with Kenya and Ghana being the first two to formalize the protocol . the African Union(AU).
One of the paramount objective of the trade agreement is to create a single continent market for goods and services to propel businesses and make trade better. They seek to have a free flow of movement of goods and people to encourage more investments for the growth and expansion of Africa’s economy. This move will catapult the intra-trade relationships in the continent to necessitate a better business environment.
Potential investments not only from Africa itself but beyond the boundaries would kick in having the need to face less challenges with the agreement going forward. The open skies policy was among the vital policies looked into by the African states to improve the aviation sector which is definitely paying off with limited hustles on travelling from state to state. It has paved way for more businesses, investments and made the transport means easily accessible and more reliable.
The framework established will capitalize on the growth of intra-African trade that is poised to grow by 52.3 per cent, and could double the results should other barriers be removed. This will boost the manufacturing sector, encouraging competition and economic diversification at its best. A number of organizations could view this as an opportunity to benefit from the economies of scale to expand their businesses.
The biggest free trade agreement will increase the GDP of 55 states to more than $2 trillion. The possibility of a single currency could make Africa’s economy a super powerhouse to be reckoned with, having a powerful influence in the international market.