The African Continental Free Trade Area (AfCFTA) is the world’s largest free trade area (FTA) by number of countries. The AfCFTA agreement seeks to create a single market for goods and services produced in Africa, accelerating technological change and industrialisation through increased intra-African trade. The agreement also seeks to be inclusive. It has protocols dedicated to women and youth, and its negotiation and implementation process has constantly emphasised a focus on small and medium-sized enterprises. The AfCFTA is thus hoping to increase prosperity for all Africans.
Africa is already unequal
However, the AfCFTA will be implemented within the context of high African inequalities: between countries, within countries, between firms, and among people. The AfCFTA state parties have varying economic sizes and productive capacities, and this may affect the distribution effects of the AfCFTA. As one example, the more industrialised countries, such as South Africa and Morocco, are better positioned to take advantage of the single market compared to most of the 33 Least Developed Countries in Africa.
Read full article by Teniola Tayo published by the Africa Policy Research Institute: The AfCFTA can help address African inequalities
