Via Flickr
The African Continental Free Trade Area (CFTA) was proposed just over a year ago. It’s now been approved by the necessary 22 countries, and now Africa looks ahead to the economic prosperity a “free trade” zone can bring! But critics are urging caution.
A cooperative trade zone for Africa has been in the works for decades. The CFTA would bring together the economies of over 1.2 billion people in 55 African countries, for a total of over $3.4 BILLION, which would become the world’s LARGEST trade bloc.
The main feature of the CFTA is a removal of 90% of tariffs between African countries, meaning trade would be cheaper and more efficient. Some estimate that this could result in an over 50% increase in trade between African countries.
The largest economy in the continent, Nigeria, isn’t yet convinced and hasn’t signed on. They’re concerned that free trade could harm local producers and manufacturers.
And these concerns make sense. In other free trade zones, such as CAFTA, countries with well-developed manufacturing, like the U.S., overwhelmed less-developed countries, like Guatemala.
As Nigeria consults local business leaders, there are signs that their concerns, and others, can become part of the deal as it continues to develop. Here’s hoping that everything is addressed and this important step toward African development, progress, and unity goes through!