Addis Ababa, January 1, 2021 (FBC) –Prime Minister Abiy Ahmed has congratulated Africa on starting to trade within world’s largest free trade area.
African countries officially began today trading under the African Continental Free Trade Area (AfCFTA), a new continent-wide free trade area.
Taking to twitter, Prime Minister Abiy said “Congratulations to our continent for the beginning of trading under AfCTA.”
“The new frontier for Africa is indeed regional integration, where minds are open to ideas and markets are open to trade. Trade defuses the most fraught relations & integrated markets generate prosperity,” he added.
The trade agreement, which will cover a market consisting of 1.2 billion people and a combined GDP of $3 trillion, has been signed by 54 of the 55 African Union member states.
Some 34 of those countries have ratified it as of early December. AfCFTA will create a single market for goods and services, in hopes of boosting trade among its nations.
The agreement will work towards a continental customs union, eliminate tariffs on 90% of intra-Africa goods, aid in the movement of capital and people between countries, facilitate external investment, and reduce non-tariff barriers.
AfCFTA has the potential to increase intra-African trade by over 50%, according to the UN Economic Commission for Africa, while the World Bank suggests the agreement could mean an added $76 billion in income for the rest of the world, according to Quartz.
Trade under the AfCFTA was expected to be launched on July 1, 2020 but was delayed due to COVID-19 pandemic.