{"id":631835,"date":"2018-03-28T03:47:43","date_gmt":"2018-03-28T03:47:43","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/"},"modified":"2018-03-28T03:47:43","modified_gmt":"2018-03-28T03:47:43","slug":"how-beneficial-really-is-the-african-continental-freetrade-area","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/","title":{"rendered":"How beneficial really is the African Continental Freetrade Area?"},"content":{"rendered":"

How beneficial can the African Continental Freetrade Area really be?<\/strong> The pan-African Continental Freetrade Zone (CFTZ) agreement \u2014 signed by 44 African countries including Egypt<\/a> \u2014 is being heralded by the African Union as having the potential to increase intra-continental trade by 53% by eliminating import duties, which average 6.1%, and to more than double trade if non-tariff barriers are also reduced. Credit agency Moody\u2019s has given its approval for the agreement, with its managing director for credit strategy saying that it would be credit positive and give regional trade greater stability.<\/p>\n

Others, however, are finding flaws with the numbers.<\/strong> The United Nations Conference on Trade and Development (UNCTAD) estimates (pdf)<\/a> the total annual gain would be USD 4.6 bn, or 0.2% of continental GDP, even if all tariffs were scrapped. The signatories have only committed to cut tariffs on 90% of goods, suggesting that some of the most onerous taxes may remain, writes Steve Johnson for the FT<\/a>. The AU\u2019s analysis is predicated on all of its 55 members signing up to the CFTZ, but 10 countries, including South Africa and Nigeria \u2014 the continent\u2019s largest economies \u2014 have not signed it.<\/p>\n

It may not be much compared to other regional treaties, but it\u2019s a good start:<\/strong> By scope and size the agreement does not come close to its counterparts NAFTA, the EU and the Asian-Pacific regional freetrade zones. Analysts, including John Ashbourne, Africa economist at Capital Economics, see that the agreement provides a good jump off point by tackling two of the biggest problems in African trade. The first being, that at 19.9% of African exports going to other continental markets, intra-continental trade is low. The second, by boosting trade among African nations, countries will reduce their dependence on extractive commodities, which are volatile.<\/p>\n

Meanwhile, Egyptian healthcare companies are looking to be among the first to take advantage of the agreement.<\/strong> Representatives from 30 local pharma companies will be meeting with 16 companies from Somalia to explore potential cooperation on trade, according to Medical Exports Council Chair Rasha Nasr<\/a>. The companies are hoping to benefit from the CFTZ agreement, she added.<\/p>\n","protected":false},"excerpt":{"rendered":"

How beneficial can the African Continental Freetrade Area really be? The pan-African Continental Freetrade Zone (CFTZ) agreement \u2014 signed by 44 African countries including Egypt \u2014 is being heralded by the African Union as having the potential to increase intra-continental trade by 53% by eliminating import duties, which average 6.1%, and to more than double […]<\/p>\n","protected":false},"author":1,"featured_media":631836,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[72,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-631835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-enterpriseam","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"2109c239-12ec-4710-8166-f99e2e687aaf","order":"0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2018\/3\/1895.jpg","photo_position":"above","related_issue":[631816],"teaser":"","voice_url":""},"yoast_head":"\nHow beneficial really is the African Continental Freetrade Area? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How beneficial really is the African Continental Freetrade Area?\" \/>\n<meta property=\"og:description\" content=\"How beneficial can the African Continental Freetrade Area really be? The pan-African Continental Freetrade Zone (CFTZ) agreement \u2014 signed by 44 African countries including Egypt \u2014 is being heralded by the African Union as having the potential to increase intra-continental trade by 53% by eliminating import duties, which average 6.1%, and to more than double […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-28T03:47:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2018\/3\/1895.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"How beneficial really is the African Continental Freetrade Area?\",\"datePublished\":\"2018-03-28T03:47:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\"},\"wordCount\":351,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2018\/3\/1895.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"THE MACRO PICTURE\"],\"articleSection\":[\"THE MACRO PICTURE\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/03\/28\/how-beneficial-really-is-the-african-continental-freetrade-area\/\",\"name\":\"How beneficial really is the African Continental Freetrade Area? 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The agreement, whose main objective is \u201cto create a single continental market for goods and services,\u201d would promote infrastructure development among the signatory countries as well as reducing a host of customs\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630093,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/11\/continental-freetrade-zone-will-take-two-years-to-be-implemented-fully\/","url_meta":{"origin":631835,"position":1},"title":"Continental freetrade zone will take two years to be implemented fully","author":"enterpriseam admin","date":"11 April 2018","format":false,"excerpt":"The pan-African Continental Freetrade Zone (CFTZ) will take around two years to come into full effect, Trade and Industry Ministry spokesman Yasser Gaber says, Al Shorouk reports. According to Gaber, the 44 signatories will need time to reach consensus on the fine print. Minister Tarek Kabil had said that the\u2026","rel":"","context":"In "Diplomacy + Foreign Trade"","block_context":{"text":"Diplomacy + Foreign Trade","link":"https:\/\/enterpriseam.com\/egypt\/category\/diplomacy-foreign-trade\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":593147,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/19\/correctly-implementing-afcfta-could-unlock-usd-3-tn-worth-of-growth-across-the-continent\/","url_meta":{"origin":631835,"position":2},"title":"Correctly implementing AfCFTA could unlock USD 3 tn-worth of growth across the continent","author":"enterpriseam admin","date":"19 November 2019","format":false,"excerpt":"Correctly implementing the African Continental Freetrade Agreement (AfCFTA) could unlock USD 3 tn-worth of growth across the continent, Baker McKenzie says. According to research from the law firm and Oxford Economics, countries need to double down on eliminating limitations related to infrastructure, resources, and other regional trade agreements that might\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/11\/3053.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":635535,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/12\/06\/new-african-fta-by-july\/","url_meta":{"origin":631835,"position":3},"title":"New African FTA by July?","author":"enterpriseam admin","date":"6 December 2017","format":false,"excerpt":"New African FTA? Trade and Industry Minister Tarek Kabil said yesterday that African countries are exploring establishing a continental freetrade area by next July. The issue came up during Kabil\u2019s talks with the African Union\u2019s Trade and Industry Commissioner Albert Muchanga in Cairo earlier this week, Al Ahram reports.","rel":"","context":"In "Diplomacy + Foreign Trade"","block_context":{"text":"Diplomacy + Foreign Trade","link":"https:\/\/enterpriseam.com\/egypt\/category\/diplomacy-foreign-trade\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":597733,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/02\/made-in-africa-could-be-the-new-made-in-china-in-50-years\/","url_meta":{"origin":631835,"position":4},"title":"\u201cMade in Africa\u201d could be the new \u201cMade in China\u201d in 50 years","author":"enterpriseam admin","date":"2 May 2019","format":false,"excerpt":"\u201cMade in Africa\u201d could be the new \u201cMade in China\u201d in 50 years if enough focus is given to investing in manufacturing across the continent, our friend Carbon Holdings CEO Basil El-Baz writes for the Financial Times\u2019 Beyond Brics blog. Many economies in Africa have already been flourishing over the\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":622829,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/14\/south-africa-becomes-fourth-country-to-ratify-tfta-after-egypt-uganda-kenya\/","url_meta":{"origin":631835,"position":5},"title":"South Africa becomes fourth country to ratify TFTA after Egypt, Uganda, Kenya","author":"enterpriseam admin","date":"14 October 2018","format":false,"excerpt":"South Africa became the fourth African country to ratify the African Tripartite Freetrade Area (TFTA) agreement after Egypt, Uganda, and Kenya, Secretary General of the Common Market for Eastern Southern Africa (COMESA) Chileshe Kapwepwe said. 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