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Afcfta And Trade On The Continent - Business - Nairaland

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Afcfta And Trade On The Continent by grandhacke(m): 9:08pm On Aug 21, 2019
AFCFTA AND TRADE ON THE CONTINENT
There is strong evidence that contemporary continental cooperation can influence both the context and quality of transnational policy making, ranging from economic development social affairs, trade, health, education, to peace and security. To this effect, the African continental free trade Area is a laudable development pact on a initiative for continental integration, paving the way for more better trade and development.

AFCFTA is a free trade agreement amongst 54 out of 55 union, targeting at creating a single and more formidable market for goods and services as well as a single custom union for free movement of persons and capital. Also, member countries of the pact seems to be the largest bloc in terms of number of participating nations even against any other organization like the world trade organization. This agreement came into force on the may 30, following the ratification by 22 out of the signatory states and entered its operational phase following heads of government summit in July, 2019 in Niamey, the Capital of Niger Republic.

Furthermore, the agreement seek to create a single market platform for all member nation states in order to promote trade and commerce amongst them. This trade facilitization will also ensure the path towards enabling industrialization of the continent. Thus, this agreement as initiate by the African Union in Kigali, Rwanda on March 21, 2018 which will ensure or required signatory member state to remove tariffs of about 90% of goods and services , thereby allowing free access to commodities, good and services across the continent without much hitches and barriers.

In addition, its estimated that AFCFTA agreement will further increased and boost trade by 52.3% across African come 2022. On why this initiative is very important, intra-Africa trade is only about 10% of total African trade. Therefore, AFCTA is expected to help in pushing up for considerable trade on the continent. Even though, some are of the view that this initiative AFCFTA may end up in favour of rich and advantageous African countries against the poor ones. However Analysts sees it as an avenue of encouraging competition among member state. There is, therefore, tremendous potential for the continent to exploit, considering the fact that before this initiative, mobility of Africa migrants may decide to remained and moved around and within the sub-Saharan African. And this number is estimated to be around 70% of teeming Africa Youth .
This also will give African youth economic opportunities they deserve in a way that trade and business expansion will pave, reinforced professionals and educating mobility of its work force, thereby creating an estimated 1.2billion market force in the continent.
Consequently, AFCTA has an important part to play in Africa development drive, through contributing to it income generation, structural transformation, job creation and improve security. This part holds great and important future development which can be achieved if strong African partnership in this pact, which will eventually lead to strong African economy integration. Its pertinent and of noteworthy to praise African leaders especially at this time for agreeing to initiate and to signed this pact towards ensuring and seeing that African, and it economy, is moved towards another face of development.

Finally, regions and continental block are now everywhere across the globe and are increasingly fundamental to the functioning of all aspects of world affairs from trade to conflict management and can even be said to now constitute world order. To this end AFCFTA will stand the test of time if sincere look is been in ensuring that tariffs and barriers are wholistically discarded or reduced to its bearest minimum in ensuring a strong economic partnership on the continent.


Aruwan Enoch Peter,
POST GRADUATE SCHOOL, KASU, KADUNA

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