African Continent Creates EU-Like Agreement
According to Markets Insider, every African country except for one has signed a free trade agreement called the African Continental Free Trade Area. The EU-like agreement could increase the development and movement across Africa.
As a whole, the economic development of the continent has floundered for many reasons, one of which is poor communication between countries.
The African Continental Free Trade Area will contain 55 countries and over a billion people. Within five years, 90 percent of tariffs would be discarded. A few of the especially poor countries will have another five to ten years on tariff reduction in order to protect against cheaper imports.
More, everyone in the African Continental Free Trade Area will have a digital passport, so they can move around more freely, as in the EU.
Fraçis Conradie, the head of research at NKC African Economics, said “There should be a benefit to consumers in Africa for sure, as goods will be cheaper, but there's going to be a political pushback from countries that are having the same goods imported at a lower price than domestic sellers." Conradie continued, “Integration is going to help, but this is going to take many years for it to work.”
He added, "There's going to be problems, especially for poorer countries. If Egyptian and South African manufacturers are selling their goods without tariff to Nigeria, Nigerian manufacturers are going to lose out. This could happen in a lot of the poorer countries."
"The eyes of the world are turned towards Africa," Egyptian President and African Union Chairman Abdel Fattah al-Sisi said
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