AfCFTA – WORLD’S BIGGEST SINGLE MARKET IN AFRICA

Ethiopia becomes 18th country to ratify the African Continental Free Trade Area (AfCFTA). This comes ahead of the 32 Ordinary Session of the Assembly of the African Union. Which will hold on the 10 – 11 of February 2019 in Addis Ababa, Ethiopia.  

African Continental Free Trade Area (AfCFTA) is an initiative launched on March 21, 2018 by the assembly of the African Union. This launching was at the extraordinary Summit in Kigali, Rwanda. The AfCFTA will create the biggest single continental market (by participation) for goods and services, with free movement of business persons and investments. More so, the AfCFTA will bring together 54 African countries with a combined population of more than one billion people and a combined gross domestic product of more than US $3.4 trillion.

According to the African Development Bank, “the most important benefit from the AfCFTA will be the development of value chains spanning multiple countries that will boost exports of value-added products to the rest of the world as the continent is industrialised”.

The Council of Ministers today approved Ethiopia’s membership to the Africa Continental Free Trade Agreement. The #AfCTA—one of the biggest trade agreement since the creation of the WTO—attempts to create a single market in Africa. pic.twitter.com/mmAo9rLY5z

— Office of the Prime Minister – Ethiopia (@PMEthiopia) February 2, 2019

2/2: Meanwhile, the National Assemblies of SEVEN Member States have APPROVED ratification for the #AfCFTA, and are expected to be deposited between now and the Summit. They are: #SouthAfrica, #SierraLeone, #Namibia, #Congo, #Togo, #Mauritania, #Senegal bringing the TOTAL to 17.

— Moussa Faki Mahamat (@AUC_MoussaFaki) February 1, 2019

About AfCFTA

At the launch event in Kigali, 44 countries out of the 54 member states signed the agreement. Africa’s Biggest Economy – Nigeria was among the countries that abstained on the grounds of protectionism. Nigeria’s Government is currently reviewing the impact of AfCFTA on the economy. However, with the upcoming elections in the country, it is unlikely that any decision will be made anytime soon. Despite this set back, only twenty-two ratification will bring the agreement into force. So far, only 18th countries have either ratified or showed interest. Kenya, Ghana, Rwanda, Niger, Chad, Eswatini, Guinea, Cote d’Ivoire, Uganda, and Mali have officially ratified. Where as; South Africa, Namibia, Sierra Leone, Congo, Senegal, Togo, and Mauritania are to deposit ratification anytime from now and at the summit. Therefore, we look forward to the outcome of the upcoming summit in Addis Ababa.

The President of Rwanda and Chairman of the African Union H.E Paul Kagame delegates the unveiling of the AFRICAN CONTINENTAL FREE TRADE AREA—Creating One African Market. #AfCFTA2018 pic.twitter.com/ubFhwwSBs5

— RBA (@rbarwanda) March 22, 2018

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