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(Ecofin Agency) – Despite its official operationalization in early 2021, the African continental free trade area is still in the process of being implemented. Forty countries have met the requirements to become state parties.
The African Union has announced that it has welcomed a new state party to the African Continental Free Trade Area (AfCFTA). The deal was officially ratified by Cape Verde, which became the 41st country to do so.
“Forty-one (41) African Union Member States are also State Parties to the Agreement by virtue of their deposits of the instruments of ratification of the Agreement, demonstrating an unequivocal political will to achieve market integration in Africa,” the AU statement reads. As a reminder, African countries have agreed to substantially liberalize all trade by eliminating tariffs on 97% of tariff lines for 13 years from the start of implementation. Initially scheduled to start on July 1, 2020, the AfCFTA’s operationalization was postponed due to covid-19, before being formalized on January 1, 2021.
Last year, Silver Ojakol, chief of staff at the AfCFTA Secretariat, announced that 90% of the rules of origin planned to come into effect under the zone have already been agreed upon. The zone is expected to eventually bring together all the economies of the continent for a potential market of 1.3 billion people and a cumulative GDP of $3,400 billion. According to the AU, it is “the largest free trade area since the creation of the World Trade Organization (WTO).”
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