African nations continue to accelerate support for the African Continental Free Trade Area (AfCFTA) because 48 states have now officially signed the agreement to advance economic integration in the region.
Generic trade operations are underway as AfCFTA Secretary-General Wamkele Mene verifies existing commercial activities between nineteen member countries under the AfCFTA framework. Mene interviewed by Ethiopian News Agency discussed both the modification of tariffs and the completion of the goods list that countries can trade under the deal.
The African Union deems AfCFTA as a transformative trade agreement that aims to create the globe’s top free trade area on the African continent. After complete implementation, AfCFTA will unify the market that connects 1.4 billion people through a combined gross domestic product (GDP) of 3.4 trillion U.S. dollars.
Mene emphasized that African nations should immediately implement trade rules while working to obtain fresh market opportunities and attract foreign investment. Mene stated that the implementation effort matters most because protectionist trade policies worldwide endanger economic stability in developing countries.
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The complete realization of AfCFTA faces obstacles because Africa has inadequate infrastructure throughout the continent. Mene computed that the creation of vital trade infrastructure across Africa would require an investment of 150 billion U.S. dollars to become a reality. The efficiency along with trading volume will remain limited because of inadequate logistics systems and transport networks.
Mene maintained a positive outlook for the growing private sector involvement while waiting for crucial legal protocols that would lead to improved free trade sustainability.
