The Historical Evolution and Socio-Economic Potential of the AfCFTA

The African Continental Free Trade Agreement (AfCFTA) ushers in a significant reorientation of trade dynamics in Africa, away from the international trade framework that was established during colonial times and has lingered on to the present. The operational phase of the AfCFTA was formally launched on July 7, 2019, and commenced in January 2021, with 54 of 55 member states signing the agreement. This historic moment marked the largest number of countries to commit to a trade agreement since the World Trade Organisation was founded in 1995. Though concerns exist about dwindling revenue from import duties and uneven growth, as is the case with establishing any regional integration, the potential of the AfCFTA is massive. The World Bank (2020) estimates that the AfCFTA could boost Africa’s income by $450 billion by 2035, lift 30 million Africans out of extreme poverty, and boost the incomes of nearly 68 million others living on less than $5.50 a day. Nevertheless, the benefits of the AfCFTA can only be attained if African leaders summon the required political will to manage the political and economic dynamics that necessitate its full and comprehensive implementation.

Link: https://link.springer.com/chapter/10.1007/978-3-032-14051-7_1