Browsing: African Continental Free Trade Area

For historic reasons, bilateral and regional trade in Africa has been hampered by trade routes designed for export away from the continent rather than for facilitating intra-Africa trade. Obstacles include long distances, inadequate transport services, and inefficient institutional and transit regimes.

In many landlocked African countries, economic centres are located several hundred kilometres away from the closest seaport. Overcoming geographic constraints or the lack of economies of scale caused by small transportation volumes is key for all countries, particularly transit countries. A renewed focus on the efficiency of transport and logistics services is long overdue, given that many countries retain policies that favour closed, small, and inefficient services markets.

By committing to no new barriers to services trade during the progressive liberalization process, at least in the five priority sectors—business, communication, financial, transport, and tourism services, and with declining trade costs—the transport sector is bound to expand.…

The African passport is a common passport document that is set to replace the existing nationally issued AU member states’ passport, and exempt bearers from having to obtain any visas for all 55 states in Africa. The three types of AU passports that are to be issued include the Ordinary Passport which is 32 pages and valid for five years, that will be issued to citizens and is intended for occasional travel such as business trips and vacations. The Official or Service passport will be issued to officials attached to government institutions, who have to travel on official business.

Finally, the diplomatic passport will be issued to diplomats and consuls for work-related travel and to their accompanying dependents. The passport has inscriptions in English, Swahili, Arabic, French and Portuguese.

The initiative aims at transforming Africa’s laws, which remain generally restrictive on the movement of people. This, despite political commitments, to…

AfCFTA is reshaping African markets; deepening economic integration in accordance with the Pan African Vision of ‘An integrated, Prosperous and Peaceful Africa,’ as enshrined in Agenda 2063. The agreement established a single continental market for goods and services, making for the largest and most ambitious trade bloc in the world, after the WTO. This has created a new market of 1.3 billion consumers across Africa, accounting for a combined GDP in excess of US$3.4 trillion in 55 countries.  

According to the World Bank, AfCFTA has the potential to eradicate extreme poverty in the lives of 30 million Africans, and boost the incomes of 68 million of them, that live below the poverty line. Moreover, in the long term the continent is set to immensely reap more benefits out of the Agreement such as the diversification of Intra African trade, elimination of barriers and tariffs, job creation, increase in wages for…

Because emigrants bring with them more than just economic needs from their home countries, migration is a trade stimulant in and of itself. With this movement, there is increased demand for housing, food, transportation and other services which are beneficial to local economies. 

In addition, migrants can serve as bridges to a wider market because they promote trade and tourism in their home countries, thereby creating demand. 

The diaspora population's needs can be met if the African economy is stimulated by the trade-in African heritage. While there are many reasons for migration, one of the most important is joblessness, both within Africa and to other parts of the world. …

Women’s role in trade and economic growth is significant and across Africa; they have mostly worked in export-oriented industries like textiles and clothing, agriculture, and tourism. 

For long, women have been stuck in low-paid labour but with increased demand for skills, things are changing. The AfCFTA offers an opportunity for African women to take a deep dive into the opportunities it offers. Women are now taking on more jobs in wholesale and retail trade, finance, business services, and hospitality which have prepared them for the opportunities that the continent offers under the trade agreement.  

Intra-African trade is expected to rise by between 33 per cent and 52 per cent but this is dependent on how much tariff liberalisation takes place between African countries.…