With 24 ratifications, African Free Trade Agreement takes effect

The continental free trade agreement would create a market of over 1.2 billion people if all African countries signed up. Credit/BBC

With 24 ratifications, African Free Trade Agreement takes effect

The African Free Trade Agreement has legally taken off midnight on Wednesday after a couple of months negotiating signatory with some other African countries. The countries that have signed up have until July to work out the details of how it will work.

So far, only 24 African countries out of 54 have ratified the trade agreement.

 Africa’s largest economy, Nigeria yet to sign. Burkina Faso became the latest country to join when it signed up on Wednesday.

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The continental free trade agreement would create a market of over 1.2 billion people if all African countries signed up

It is only from then that we’ll start to see what difference it could make.

The AU’s commissioner for trade and industry has been celebrating the news:

The agreement is aimed at creating a single continental market for goods and services with free movement of goods, people and investments, similar to the European Union.

Experts say it will boost trade in Africa and strengthen the continent’s position in global trade.

The UN’s Economic Commission for Africa estimates that the agreement has the potential to boost intra-Africa trade by 53%.

Currently, Africa trades far less with itself than it does with the rest of the world.

The African Union says if all countries signed up it would become the largest free trade area since the formation of the World Trade Organization.