The AfCFTA Starts operation in Africa what are the benefits?

[divider style=”solid” top=”25″ bottom=”25″][dropcap]O[/dropcap]n 1st January 2021 trading under the AfCFTA started Africa. This is a historic milestone for the continent as Africa will really start to trade with Africa.

Currently, the percentage of trade that African countries do with each other is a mere 16 – 18%. The bulk of the continent’s trade is with the rest of the world, and most African exports are in raw materials including extractive commodities like oil, gas and minerals which are vulnerable to market volatility.

Under AfCFTA trading, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and traders of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for speedy reporting and resolution of NTBs has been put in place (www.tradebarriers.africa). The bigger market will spur producers to upscale and so support increased industrialization and value addition on the continent. More employment opportunities will thus be generated for Africa’s burgeoning youth population.

It has already been demonstrated that to mitigate the Covid-19 pandemic medicines and personal protective equipment need to be produced and moved to where they are needed expeditiously. The AfCFTA will be a tool for mitigation of Covid-19 by allowing free and unhindered trade in health products across the continent.

The Agreement establishing the AfCFTA was signed in March 2018, in Kigali Rwanda, following conclusion of the main legal texts. 54 Member States of the African Union have signed, and 30 countries have deposited their instruments of ratification with the Chairperson of the African Union Commission.

The main objectives of the AfCFTA are to create a single market for goods and services, facilitate the movement of persons, promote industrial development and sustainable and inclusive socio-economic growth, and resolve the issue of multiple membership, in accordance with agenda 2063. It lays a foundation for the establishment, in future, of a Continental Common Market.

Also Read

New tool enables African businesses to find trade opportunities

Kenya’s Likoni floating bridge ready for use

theafricalogistics

Recent Posts

Inside the Cult of Trader Joe’s: Why Discontinued Items Create More Buzz Than New Releases

Trader Joe’s, the quirky grocery chain with no loyalty program, minimal advertising, and its own…

30 minutes ago

Why Chick-fil-A Keeps Winning on Customer Satisfaction

For 11 consecutive years, Chick-fil-A has ranked as the top quick-service restaurant in the American…

40 minutes ago

Mercedes-Benz Temporarily Suspends Operations at East London Plant

Mercedes-Benz South Africa (MBSA) has temporarily halted production at its East London manufacturing plant as…

9 hours ago

New Security Procedures at OR Tambo: Why You Should Arrive Earlier Than Ever

Passengers travelling through OR Tambo International Airport are being urged to arrive significantly earlier than…

2 days ago

Werner Enterprises Triumphs in Landmark Legal Battle as Texas Supreme Court Dismisses $90M Verdict

In a groundbreaking ruling delivered on June 27, 2025, the Texas Supreme Court reversed a…

5 days ago

McDonald’s and Krispy Kreme Call It Quits: Doughnut Deal Ends Amid Mounting Costs

In a surprise development that’s caught the attention of food lovers and industry watchers alike,…

1 week ago