Africa is home to over 1.3 billion people and has an economy that is ripe for growth. African countries are working together to achieve economic development through trade agreements that aim to increase trade between African nations and with the rest of the world. Trade agreements can help African economies to diversify, create jobs, and increase economic growth. In this article, we will be exploring some of the African trade agreements that are currently in place and their impact on the continent.

African Continental Free Trade Area Agreement (AfCFTA)

The African Continental Free Trade Area Agreement is one of the most significant trade agreements to have been signed in Africa. It was agreed upon by 54 African nations in 2018 and has the potential to create the world`s largest single market. The agreement aims to boost intra-African trade by removing tariffs on 90% of goods and services. The agreement also provides for the liberalization of trade in services, investment, intellectual property rights, and competition policy.

The AfCFTA has the potential to unlock Africa`s economic potential and drive growth on the continent. It will help African countries to benefit from economies of scale, attract investment, and create jobs. The agreement has already been ratified by 35 African nations, and it is expected to enter into force in 2021.

East African Community (EAC)

The East African Community is an intergovernmental organization made up of five East African nations: Kenya, Tanzania, Uganda, Rwanda, and Burundi. The community was established in 2000, and its main objective is to promote economic integration and development in the East African region.

The EAC has created a common market, which includes the free movement of goods, services, capital, and people. The community has also eliminated internal tariffs, reduced non-tariff barriers, and harmonized standards and regulations. The EAC has been instrumental in promoting trade within the region, with intra-regional trade increasing from $2.4 billion in 2005 to $6.2 billion in 2018.

The EAC has also established a framework for cooperation with other regional groupings, such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), which has further contributed to the growth of trade in the region.

COMESA Free Trade Area (FTA)

The Common Market for Eastern and Southern Africa was established in 1994 and is made up of 21 countries in East and Southern Africa. The COMESA Free Trade Area was established in 2000 and includes 16 of the member states. The FTA aims to promote regional integration through the elimination of tariffs and other barriers to trade.

The COMESA FTA has been successful in promoting intra-regional trade, with trade increasing from $3 billion in 2000 to $25 billion in 2018. The FTA has also helped to attract investment to the region and has created jobs.

Conclusion

African trade agreements have the potential to unlock the continent`s economic potential and drive growth. The African Continental Free Trade Area Agreement, East African Community, and COMESA Free Trade Area are just some of the agreements that are promoting trade and economic integration in Africa. These agreements are helping to create jobs, attract investment, and increase economic growth. As these agreements continue to be implemented, they will play a significant role in shaping Africa`s economic future.