This archive report was first published on 5 July 2019.
The African Continental Free Trade Area (AfCFTA) is a major step towards economic integration in Africa, and it's expected to launch in 2020. The accord, which will progressively phase out duties on 97% of goods traded between African countries, aims to increase intra-African trade by 60% by 2022, according to the African Union (AU).
Albert Muchanga, in charge of trade and industry at the 55-nation bloc, told AFP that the actual date of trading should be July 1, 2020. However, he noted that the summit has to consider this recommendation, and the ministers of trade have already accepted it.
"I am very optimistic, the passion is spreading and everyone is ready to work hard for the better," Muchanga added.
The launch of the AfCFTA will be the major focus at the AU summit in Niamey, where Nigeria, Africa's most populous nation, will sign up to the deal alongside Benin and Eritrea.
According to Muchanga, the biggest benefit of the accord is the removal of fragmentation in Africa, which will lead to an influx of foreign capital, creating jobs and prosperity.
However, some have feared that cheaper imports will hit small manufacturers and farming families. Muchanga acknowledged that some countries would face a short-term hit to revenues but competition would drive innovation.
He also announced that a billion US dollars (890 million euros) in credit has been earmarked by the African Import and Export Bank for countries requiring support.
"Countries which will have adjustment costs then can have recourse to that facility which will assist them," Muchanga said.
