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Why AfCFTA is the best thing that has happened to your business in Africa
06 Jul. 2018


Largest free trade area in the world

So far, 44 of the 54 countries have signed the free trade agreement, with economic powerhouse South Africa to follow soon after parliamentary ratification. This means that by number of countries, AfCFTA will be the largest free trade area in the world, which will afford almost any business on the continent the opportunity to grow by easily entering new markets.


A continent-wide synergy

One of the greatest benefits the free trade agreement will bring to the continent is the fact that it will allow businesses to freely move their goods and services across Africa, at low or no tariffs levied. This means that the free trade agreement will also be a prime candidate for foreign investment, that will only further help to boost local businesses, and help them grow in a way that was previously unheard of on the continent.


This can already be seen in the preliminary projections for AfCFTA’s gross domestic product, which has been placed at nearly 2.5 trillion US Dollars.


A return of primary goods

One of the reasons why the free trade agreement has so much potential, is because only 15% of African exports are sent to other African countries. If you take into account that almost 70% of European exports go to other European countries, AfCFTA has the potential to revolutionise the African continent by providing businesses and markets with incredible trade and manufacturing opportunities.

 

The most important thing to consider regarding the potential the trading act offers the continent, is that businesses that have established themselves in an African country stand to gain much more than businesses that enter the continent after the effects of AfCFTA is in full swing.



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