The African Continental Free Trade Area Agreement Will Be Good For The Economies Of Member Countries

Although the country is still reluctant to undermine local producers and entrepreneurs, it has much to gain from improving its access to the wider African market. To avoid further incidents of this kind, effective instruments are needed across the continent to effectively manage the transition to trade liberalization. In addition, efforts must be made to ensure a uniform level of tariff compliance in Africa`s regional economic communities. Here, leadership under the new Biden administration can play an important role. AfCFTA`s success will depend on a rapid recovery from the pandemic. In a report by the management firm Palladium, “unprecedented mobilization of global private capital would foster mutually beneficial economic growth, which boils down to key priorities such as job creation, infrastructure development and improved social services.” The Biden administration can cooperate with other partners and push private financing toward the African internal market. Maryla Maliszewska , lead author, is a senior economist in Trade and Regional Integration Unit (ETIRI) at the World Bank. His area of expertise covers various aspects of trade policy and regional integration, with particular emphasis on the impact of trade on poverty and income distribution. Sign up for free email notifications when new serial and/or country articles are published on the IMF website. Among the Phase 1 issues that remain to be negotiated are the timing of tariff concessions and other specific commitments. Negotiations are also underway on the city that will host the AfCFTA. [25] [32] But to give AfCFTA the best chance of keeping its promises, the continent will need help and investment to modernize its infrastructure. The new Biden administration should take note.

Africa also has a labour problem. Given the growing population and rapid urbanization, the continent`s agro-industrial capacity will need to be upgraded to produce enough food. Although more than 50% of the labour force is active in agriculture, Africa imports $72 billion in food and agricultural products a year, according to the UK.