The African Continental Free Trade Area (AfCFTA) when fully implemented is expected to spur a $3 trillion GDP growth in Africa and some countries stand to benefit most, according to a new report being launched today by Baker McKenzie and Oxford Economics.
In a press release copied to ghanabusinessnews.com, it said South Africa, Ghana, Côte d’Ivoire, Kenya and Morocco will grow most from AfCFTA.
Titled AfCFTA’s $ 3 trillion Opportunity: Weighing Existing Barriers against Potential Economic Gains – th e report shows that if fully implemented, the AfCFTA will unlock significant but uneven growth opportunities on the continent.
According to the report some countries are currently better placed than others to reap the rewards of intra-regional trade, adding that the numerous existing obstacles mean that the tangible benefits of the agreement will likely only be realized from 2030.
It further finds countries with good existing trade integration with their neighbours and which have open economies are most likely to benefit economically from lower trade tariffs.
“For example, South Africa stands to maximize the benefit from AfCFTA towards future growth and further trade expansion, due to its existing strong connections across the continent and a well-established manufacturing base. Smaller economies, such as those of Ghana and Côte d’Ivoire, stand to benefit from the agreement, due to existing favorable conditions such as having open economies, good infrastructure and supportive business environments, they could quickly ramp up their intra-continental exports,” it added.
By Emmanuel K. Dogbevi