What are the prospects for the negotiations towards the establishment of Continental FTA in Africa? The African Union (AU) summit formally launched negotiations for a Continental Free Trade Area (CFTA) at its meeting in Johannesburg, South Africa on 15 June. The CFTA is a priority initiative under the AU’s Agenda 2063 which has laid out a vision for the trajectory of African development during the next five decades. The CFTA is one of the pillars for the implementation of the Agenda 2063 aspiration for a prosperous Africa based on inclusive growth and sustainable development. This aspiration is predicated on the implementation of policies aimed at achieving systematic convergence with more developed countries and regions and growing integration into the global economy as a respected partner. It is expected that the CFTA will encompass the 54 AU member states with a population of over a billion people and a combined GDP of over US$3 trillion in 2014. According to research by the UN Economic Commission for Africa (UNECA), successful conclusion and implementation of a CFTA agreement complemented with efforts to improve trade-related infrastructure and customs procedures and reduce transit and other trade costs could lead to a 52 per cent ($35...
Written by David Luke, Babajide Sodipo