The African Continental Free Trade Area (AfCFTA) aims to create a single market for goods and services in Africa, enhancing economic integration on the continent. It was established in 2018 and is expected to be fully implemented in 2021.
Currently, the level of economic integration in the AfCFTA is still in its early stages. The agreement has been ratified by 54 African countries, representing a significant portion of the continent's population and GDP. However, the actual implementation and operationalization of the trade agreement are ongoing processes.
Once fully implemented, the AfCFTA is expected to lead to increased intra-African trade, harmonization of trade policies, and the elimination of non-tariff barriers. This would result in deeper economic integration and cooperation among African countries. It is projected that the AfCFTA could boost intra-African trade by over 50% by 2022.
However, there are still challenges to overcome in order to achieve higher levels of economic integration. These include infrastructure deficiencies, administrative barriers, and the need for regulatory harmonization. Additionally, the COVID-19 pandemic has disrupted trade flows and implementation timeline.
Overall, while the AfCFTA has the potential to significantly enhance economic integration in Africa, the process is still ongoing, and its full impact will be realized in the coming years.
Economic integration level in the African Continental Free TRade Area
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