African countries sign largest free trade deal after WTO

The agreement would establish the world’s largest free trade area through an agreement that covers the trade of goods and services, investments and intellectual property rights.

At a free trade summit this week in Kigali, Rwanda, African leaders have said to be poised to sign a free trade zone deal that would unite and integrate the markets of all 54 member states of the African Union.

“That slows the trade”, said Thomas Schafer, CEO of Volkswagen in Africa.

Ministry of Foreign Affairs has confirmed that Ethiopia is among the 44 countries that signed the agreement.

At a time when the rest of the world is coming together and consolidating itself in the resolute defence of its strategic interests, African countries have no choice but to forge ahead, said Mahamat. UNCTAD, the main United Nations body dealing with trade in its latest report puts intra-African trade at 10,2% of the continent’s total trade.

Kenya, an African country has joined other developed nations like London, china, Australia, Norway to invest in rail and land tunnels to resolve challenges associated with movement of goods and services.

Much was made of Africa’s “historic moment” – second only, it was said, to the founding of the Organisation of African Unity 55 years ago.

“Nigeria is the biggest economy in Africa and one of the few countries with which South Africa suffers a trade deficit”. The agreements will still require ratification by the individual governments and will only come into force when ratified by at least 22 countries.

Former Nigerian President Olusegun Obasanjo has stressed the importance of intra-African trade for Africa’s economic development.

A single continental market for goods and services is beneficial to the continent which has always been lagging behind in terms of development as it boosts trade between African countries.

He said increasing intra-Africa trade will create more business opportunities for the people of the continent and would make sure that no region is left behind in Africa’s growth.

According to the African Union, the agreement would consolidate a market of 1.2 billion people and a gross domestic product of $2.5 trillion.

In fact, Ramaphosa even has a vision for a single African currency as an ultimate outcome of a free trade area, something he floated at a business forum as part of the summit on Tuesday.

She said the office will help member countries to share best practices in areas they have excelled in because no country can boast of best experience in every field.

AfCFTA is among the top priorities in the AU Agenda 2063, which provides for a new vision for Africa’s development over five decades.

“Admiration for the speed with which our experts and ministers of trade negotiated the basic texts establishing the Free Trade Area!”