Once again I return to my small expertise….foreign affairs….I have gotten caught up in the drama we call politics here in the US….it is a train wreck that one cannot look away from or miss the best part.
Our president is playing the trade war card these days…..everyone is in his sights……his policies reflect ideas from the 1950s not the 21st century….but that is not what this post is about……
There is a new “Free Trade” agreement now…..it is the continent of Africa…..
In a nutshell, it means a single market of goods and services for 1.2 billion people with an aggregate GDP of over $2 trillion. UNCTAD, the UN’s trade body, predicts reducing intra-African tariffs under AfCFTA“could bring $3.6 billion in welfare gains to the continent through a boost in production and cheaper goods.”
One of the more stark economic data points about Africa is just how little African countries trade with each other—just 16% of total continental trade in 2014. The UN Economic Commission for Africa thinks AfCFTA has the potential to raise intra-African trade by 15% to 25%, or $50 billion to $70 billion, by 2040.
Brookings’s analyst Landry Signé estimates that if AfCFTA works as intended, Africa will have a combined consumer and business spending of $6.7 trillion in 2030.
It is good to see that Africa is trying to protect itself and to make a better economy for the people of the region.