The African Continental Free Trade Area: Potential Economic Impact and Challenges

The African Continental Free Trade Area: Potential Economic Impact and Challenges
Author: Mr.Lisandro Abrego
Publisher: International Monetary Fund
Total Pages: 41
Release: 2020-05-13
Genre: Business & Economics
ISBN: 1513542370

Political momentum towards Africa-wide free trade has been intensifying. In March 2018, over 40 countries signed the African Continental Free Trade Area (AfCFTA) agreement. Once fully implemented, the AfCFTA is expected to cover all 55 African countries, with a combined GDP of about US$2.2 trillion. This SDN takes stock of recent trade developments in Sub-Saharan Africa and assesses the potential benefits and costs of the AfCFTA, as well as challenges to its successful implementation. In addition to increased trade flows both in existing and new products, the AfCFTA has the potential to generate substantial economic benefits for African countries. These benefits include higher income arising from increased efficiency and productivity from improved resource allocation, higher cross-border investment flows, and technology transfers. Besides lowering import tariffs, to ensure these benefits, African countries will need reduce other trade barriers by making more efficient their customs procedures, reducing their wide infrastructure gaps, and improving their business climates. At the same time, policy measures should be taken to mitigate the differential impact of trade liberalization on certain groups as resources are reallocated in the economy and activities migrate to locations with comparatively lower costs.

Assessing Regional Integration in Africa V

Assessing Regional Integration in Africa V
Author:
Publisher: UN
Total Pages: 166
Release: 2012
Genre: Business & Economics
ISBN:

The fifth of the series (ARIA/V) has come at a time of renewed enthusiasm for shortening the period of the vision of the Abuja Treaty. Its overall objective is to provide an analytical research publication that defines frameworks for African Governments, the African Union and the Regional Economic Communities, towards accelerating the establishment of the African Common Market through: the speedy removal of all tariff and non-tariff barriers, obstacles to free movement of people, investments and factors of production in general across Africa, and through fast-tracking the creation of an African continental Free Trade Area

The African Continental Free Trade Agreement: Welfare Gains Estimates from a General Equilibrium Model

The African Continental Free Trade Agreement: Welfare Gains Estimates from a General Equilibrium Model
Author: Mr.Lisandro Abrego
Publisher: International Monetary Fund
Total Pages: 32
Release: 2019-06-07
Genre: Business & Economics
ISBN: 1498314392

In March 2018, representatives of member countries of the African Union signed the African Continental Free Trade Area (AfCFTA) agreement. This agreement provides a framework for trade liberalization in goods and services and is expected to eventually cover all African countries. Using a multi-country, multi-sector general equilibrium model based on Costinot and Rodriguez-Clare (2014), we estimate the welfare effects of the AfCFTA for 45 countries in Africa. Three different model specifications—comprising both perfect competition and monopolistic competition—are used. Simulations include full elimination of import tariffs and partial but substantial reduction in non-tariff barriers (NTBs). Results reveal significant potential welfare gains from trade liberalization in Africa. As intra-regional import tariffs in the continent are already low, the bulk of these gains come from lowering NTBs. Overall gains for the continent are broadly similar under the three model specifications used, with considerable variation of potential welfare gains across countries in all model structures.

Economic Development in Africa Report 2021

Economic Development in Africa Report 2021
Author: UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT.
Publisher:
Total Pages: 220
Release: 2022-01-07
Genre:
ISBN: 9789211130041

The African Continental Free Trade Area is expected to be a game changer for development ambitions in Africa.

Yearbook on the African Union Volume 1 (2020)

Yearbook on the African Union Volume 1 (2020)
Author:
Publisher: BRILL
Total Pages: 295
Release: 2021-10-25
Genre: Political Science
ISBN: 9004498915

This is the first edition of the Yearbook on the African Union. It is first and foremost an academic project that will provide an in-depth evaluation and analysis of the institution, its processes, and its engagements. Despite the increased agency in recent years of the African Union in general, and the AU Commission in particular, little is known – outside expert policy or niche academic circles – about the Union’s activities. This is the gap the Yearbook on the African Union wants to systematically bridge. It seeks to be a reference point for in-depth research, evidence-based policy-making and decision-making. Contributors are: Adekeye Adebajo, Habibu Yaya Bappah, Bruce Byiers, Annie Barbara Hazviyemurwi Chikwanha, Dawit Yohannes Wondemagegnehu, Katharina P.W. Döring, Jens Herpolsheimer, Jacob Lisakafu, Frank Mattheis, Henning Melber, Alphonse Muleefu, John N. Nkengasong, Edefe Ojomo, Awino Okech, Jamie Pring, Elizabeth Sidiropoulos, Tim Zajontz.

Assessing Regional Integration in Africa IX

Assessing Regional Integration in Africa IX
Author: United Nations
Publisher: UN
Total Pages: 288
Release: 2021-01-06
Genre: Business & Economics
ISBN: 9789211251371

Signed by 52 African countries, the African Continental Free Trade Area (AfCFTA) is, by the number of participating countries, the largest trade agreement since the formation of the WTO. This report recognizes that it is not enough for the AfCFTA to be merely negotiated, concluded and ratified. It must also change lives, reduce poverty and contribute to economic development. For this, the AfCFTA must be effectively operationalized, but also supported with complementary measures that leverage it as a vehicle for economic development. Among the most important of the next steps is the phase II negotiations scheduled to commence on intellectual property rights, investment and competition policy in late 2019.

Economic Development in Africa Report 2019

Economic Development in Africa Report 2019
Author: United Nations Conference on Trade and Development
Publisher:
Total Pages: 0
Release: 1901
Genre:
ISBN: 9789210039741

The advent of the African Continental Free Trade Area (AfCFTA) represents a historic opportunity for the continent to boost intra-African trade and accelerate structural transformation. However, this relies on a critical policy instrument: the effective implementation of preferential trade liberalization among the AfCFTA members. Whether in practice African firms will utilize tariff preferences under the AfCFTA depends on a critical factor: rules of origin (RoO) and the net benefits of complying with them. The Economic Development in Africa Report 2019 argues for the adoption of flexible RoO and a strengthening of institutional capacities to ensure an impartial, transparent, predictable, consistent and neutral implementation of agreed RoO.

Unlocking Africa's Business Potential

Unlocking Africa's Business Potential
Author: Landry Signe
Publisher: Brookings Institution Press
Total Pages: 361
Release: 2020-04-07
Genre: Business & Economics
ISBN: 0815737394

Africa welcomes business investment and offers some of the world's highest returns and impacts Africa has tremendous economic potential and offers rewarding opportunities for global businesses looking for new markets and long-term investments with favorable returns. Africa has been one of the world's fastest-growing regions over the past decade, and by 2030 will be home to nearly 1.7 billion people and an estimated $6.7 trillion worth of consumer and business spending. Increased political stability in recent years and improving regional integration are making market access easier, and business expansion will generate jobs for women and youth, who represent the vast majority of the population. Current economic growth and poverty-alleviation efforts mean that more than 43 percent of the continent's people will reach middle- or upper-class status by 2030. Unlocking Africa's Business Potential examines business opportunities in the eight sectors with the highest potential returns on private investment—the same sectors that will foster economic growth and diversification, job creation, and improved general welfare. These sectors include: consumer markets, agriculture and agriprocessing, information and communication technology, manufacturing, oil and gas, tourism, banking, and infrastructure and construction. The book's analysis of these sectors is based on case studies that identify specific opportunities for investment and growth, along with long-term market projections to inform decision-making. The book identifies potential risks to business and offers mitigation strategies. It also provides policymakers with solutions to attract new business investments, including how to remove barriers to business and accelerate development of the private sector.

African Perspectives on Trade and the WTO

African Perspectives on Trade and the WTO
Author: Patrick Low
Publisher: Cambridge University Press
Total Pages: 0
Release: 2016-09-29
Genre: Law
ISBN: 9781316626528

Twenty-first century Africa is in a process of economic transformation, but challenges remain in areas such as structural reform, governance, commodity pricing and geopolitics. This book looks into key questions facing the continent, such as how Africa can achieve deeper integration into the rules-based multilateral trading system and the global economy. It provides a range of perspectives on the future of the multilateral trading system and Africa's participation in global trade and underlines the supportive roles that can be played by multilateral and regional institutions during such a rapid and uncertain transition. This volume is based on contributions to the Fourth China Round Table on WTO Accessions and the Multilateral Trading System, which took place just before the World Trade Organization's Tenth Ministerial Conference in Nairobi in December 2015.

Inclusive Trade in Africa

Inclusive Trade in Africa
Author: David Luke
Publisher: Routledge
Total Pages: 234
Release: 2019-04-01
Genre: Political Science
ISBN: 0429684754

Providing the first book-length analysis of the African Continental Free Trade Area (AfCFTA), this volume asks how can it be ensured that the AfCFTA is effectively implemented to deliver inclusive trade in Africa. The African Continental Free Trade Area (AfCFTA) will cover an African market of 1.2 billion people and GDP of over $2.5 trillion, across all 55 member States of the African Union. Yet, trade policy increasingly appreciates that free trade is not enough; trade must also be inclusive to deliver developmental benefits. With contributions from leading trade policy authors across Africa and beyond, this book offers insights into the development and implementation of the AfCFTA and serves as a reference for stakeholders interested in trade in Africa more broadly. The contributors assess what important lessons can be drawn from the experiences of regional integration in and beyond Africa, including from success stories like ASEAN as well as from failures like the Free Trade Agreement of the Americas. An important new work for researchers and policymakers focusing on African trade and economic policy, and trade policy more generally.