A recent report from World Bank indicates that if African implement the African Continental Free Trade Area (AfCFTA)trade agreement it will represent a major opportunity for countries to boost growth, reduce poverty, and broaden economic inclusion.
Included in the World Bank report suggested that the trade pact could boost regional income by 7 per cent or $450 billion, speed up wage growth for women, and lift 30 million people out of extreme poverty by 2035.
The report further suggested that achieving this gain will be important given the economic slowdown caused by the severe hit from the novel coronavirus which is expected to cause up to $79 billion in output losses in Africa in 2020.
The damage from the COVID-19 pandemic had already caused major disruptions to trade across the continent, including in critical goods such as medical supplies and food.
According to Albert Zeufack, the World Bank’s Chief Economist for Africa,
the African Continental Area agreement has the potential to increase employment opportunities and income and also expands opportunities for all Africans.
Most of AfCFTA’s income gains are likely to come from measures that cut red tape, simplify customs procedures, reduction in non-tariff barriers, income boost by 2.4 per cent or $153 billion and easy business access for Africans to be integrated into the global supply chain.
