To overcome many current challenges, and to build back better in the wake of COVID-19, now is the time for more trade and greater cooperation. If fully implemented, what would this exciting new agreement bring to Africa and to the world?
1. The AfCFTA will significantly reduce poverty
According to a recent report by the World Bank, the pact will boost regional income by 7% or $450 billion, speed up wage growth for women, and lift 30 million people out of extreme poverty by 2035. Wages for both skilled and unskilled workers will also be boosted by 10.3% for unskilled workers, and 9.8% for skilled workers.
The AfCFTA highlights the significant and increasing commitment of the African Union to reducing poverty through trade – a link that is increasingly recognized. As Ngozi Okonjo-Iweala, candidate for the WTO Director General, recently stated: “Trade is a force for good, and properly harnessed can help lift millions out of poverty and bring shared prosperity.”