- February 27, 2023
- Posted by: AITRC 2
- Categories: News, Report
WEEKLY TRADE POLL FOR AFRICAN COUNTRIES
FEBRUARY 2023
The African Continental Free Trade Area (AfCFTA) agreement, which became operational on the 1st of January, 2021, aims to boost intra-African trade by creating a single market for goods and services in Africa. The AfCFTA agreement is expected to eliminate tariffs and non-tariff barriers, facilitate the movement of goods and services, and enhance investment flows. The Agreement covers a market of 1.2 billion people with a combined Gross Domestic Product (GDP) of over $3 trillion. The Agreement has been signed and ratified by many African countries. Trading under the AfCFTA began in January 2021, with several State parties submitting initial offers and requests.[1]
The World Bank has projected that implementing AfCFTA is expected to generate an additional 450 million dollars in trade revenue across Africa. This can be achieved when state parties prioritise trade liberalisation, states becoming the confluence market for African- made goods and services without discrimination. The Agreement has several protocols that would improve the effectiveness of customs processes, trade facilitation, and quantitative restriction and protection of infant industries.
WEEKLY AFRICA TRADE POLLS (FOURTH WEEK FEBRUARY, 2023)
Source; AITCR weekly trade poll result, 2023
With this as a background, in order to measure popular opinion and gather feedback, Africa International Trade and Commerce Research (AITCR) conducted a weekly trade poll for African countries to determine if there has been a major improvement in intra-African trade since the AfCFTA agreement went into effect. Findings from the polls reveal that 19 percent of the respondents opined that there has been “great improvement“, 53 percent affirmed that there has been “little improvement”, while 28 percent posit that there has been “No improvement”. Hence, it is implied that a higher proportion believed that Africa had made improvements in this regard.
However, while it is still too early to assess the Agreement’s impact, positive indicators reveal the potential to boost intra-African trade, as many African countries have already started to implement measures to reduce tariffs and non-tariff barriers.Top of Form
The AfCFTA holds immense potential to revolutionize the economic landscape of the continent. It can, directly and indirectly, benefit industries such as manufacturing, services, and natural resources, resulting in enhanced productivity and economic growth. However, the actual success of the agreement depends on how effectively African countries implement and enforce it. A recent survey by AITCR has revealed that progress has been sluggish, partly due to government policies and regulations, bureaucratic hurdles, and the Covid-19 pandemic’s economic challenges. Therefore, it is imperative for state parties to intensify their efforts to accomplish the AfCFTA’s objectives, remove tariff and non-tariff barriers, and expedite the movement of goods, services and persons.
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[1] https://lawpavilion.com/blog/nigeria-domestication-of-the-african-continental-free-trade-area-afcfta-agreement/
