Pan-African free trade deal comes into force

By Addis Getachew

ADDIS ABABA, Ethiopia (AA) – The African Continental Free Trade Agreement (AfCFTA) came into force on Thursday after requisite quorum of 24 countries deposited their ratification instruments.

With an expected market of $3 trillion, encompassing a population of 1.2 billion people, the deal will make Africa, the largest free trade area in terms of geographical area and number of countries involved.

The agreement is aimed at creating a single continental market for goods and services with free movement of goods, people and investments, on the lines of the European Union.

The African Union Commission twitted: “It is now official, the African Continental Free Trade Area Agreement has entered into force today.”

The African Union estimates that the agreement has the potential to boost intra-Africa trade by 53%. Currently it stands at a mere16%.

The decision to form a continental free trade area in Africa was adopted in January 2012 during the 18th Ordinary Session of the Assembly of Heads of State and Government of the AU while AfCFTA negotiations were officially launched by the AU in 2015.