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Africa on The Verge of Unleashing a Free Trade Area Bigger than the EU or NAFTA

Cape to Cairo Free Trade Area

free trade area for africa mugabe

Mugabe with the African heads of state at the AU summit – 30 January.

Mama Africa is about to launch a cape to Cairo free trade area. The trade area will potentially be bigger in population than ether the European Union and the NAFTA.

Not much has been said or reported about this free trade area , so the chances are you haven’t heard of it yet. Plans to activate the huge Free Trade Area that will bring together half of the African continent into one common market are complete.

The momentous occasion will take place during the Tripartite Heads of State and Governments Summit on 10 June 2015. On this occasion the agreement will be signed off at the Egyptian resort city of Sharm El Sheikh.

It will be called the tripartite free trade area,  comprising of 26 countries, it will be the largest economic bloc on the continent and the likely launching pad for the establishment of the Continental Free Trade Are (CFTA) in 2017.

The deal will spring a market of 600 million people and more. What does this mean for business in Africa?

Here is how the Grand trade area will look like

Africa-Free-Trade-Area tripatite

 

According to the brookings institution 58% of Africa’s economic activity will be covered by this pact, with over $1 trillion in GDP. the move will provide the free movement of goods, services, people and capital across the the continent.

Although West Africa is not included, the Trade area will be a precursor to  Continental Free Trade Area (CFTA) in 2017. The CFTA will include the whole of Africa.

The trade area will be a big step in the right direction for Africa. it is likely to capture most of the revenue lost due to closed borders.

[sources: africanglobe| comesa]

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