The Impact of African Continental Free Trade agreement

Abstract

The birth of African Continental Free Trade agreement which came into effect on the 1st of January 2021, has a huge positive impact on the continent. The implementation has brought about enormous economic growth in African countries. African Continental Free Trade agreement is the World largest trade bloc since the creation of World Trade Organisation in 1994. It has united 1.3billion people and with annual trade potential of over $4trillion. The implementation of AfCFTA has increased the movement of people across the subregion ahead of the planned/envisaged introduction of continental passport. In all paradigms, AfCFTA has unlocked the growth and development potentials tied down for decades. This is a gigantic step toward the actualisation of the four-cardinal principle/pillar laid down by the founding fathers of the African Union, which are: Economic, political, social, and technological integration. The unity of African countries depends solely on their economic integration brought about by the implement of AfCFTA. This is the vehicle that will take African continent out of the abject poverty, under-development, and low standard of living. The free trade agreement is a win-win for all the African countries. It has boosted, trading activities, production capacity, employment aggregate and income gains on the continent.