The Top 3 Countries to Benefit from the Africa Free Trade Deal

• The world bank has ranked Ivory Coast, Zimbabwe and Kenya as the top beneficiaries of the African Continental Free Trade Area (AfCFTA)  which is expected to begin in January 2021.
• Most of AfCFTA’s income gains are likely to come from measures that cut red tape and simplify customs procedures
• The AfCFTA could start operating on January 1 next year, after the Covid-19 pandemic made its initial launch date unattainable.

The world bank has ranked Ivory Coast, Zimbabwe and Kenya as the top beneficiaries of the African Continental Free Trade Area (AfCFTA)  which is expected to begin in January 2021.

The African Continental Free Trade Area (AfCFTA) which will see reduced reduce trade barriers, import quotas and tariffs in order to increase trade of goods and services among African countries is the largest since the creation of the World Trade Organisation in 1994.

The world bank disclosed that “Most of AfCFTA’s income gains are likely to come from measures that cut red tape and simplify customs procedures”.

READ ALSO: COVID-19: Take-off of Africa Free Trade Zone “AFCFTA” Postponned

“Tariff liberalisation accompanied by a reduction in non-tariff barriers — such as quotas and rules of origin —would boost income by 2.4 per cent, or about $153 billion. The remainder — $292 billion — would come from trade-facilitation measures that reduce red tape.”

AfCFTA is expected to activate the long-delayed economic potential of Africa by enhancing intra-regional trade, improving supply chains and distributing expertise.

When introduced, the continental free-trade zone would put 1.3 billion people together in a $3.4 trillion economic partnership.

The contract, which was due to begin on July 1, 2020, was intended to reduce traders’ enforcement costs and make incorporation into global supply chains simpler for African companies.

The AfCFTA could start operating on January 1 next year, after the Covid-19 pandemic made its initial launch date unattainable.