• Coronavirus
  • News
  • Politics
  • Business
  • Sports
  • World
  • More
    • Health
    • Education
    • Crime
    • Legal
    • Travel & Tourism
    • Lifestyle
    • Science & Technology
  • Entertainment & Arts
  • Our Radio Schedule
Saturday, June 14, 2025
  • Login
Plan B 104.5 FM
  • Coronavirus
  • News
  • Politics
  • Business
  • Sports
  • World
  • More
    • Health
    • Education
    • Crime
    • Legal
    • Travel & Tourism
    • Lifestyle
    • Science & Technology
  • Entertainment & Arts
  • Our Radio Schedule
No Result
View All Result
  • Coronavirus
  • News
  • Politics
  • Business
  • Sports
  • World
  • More
    • Health
    • Education
    • Crime
    • Legal
    • Travel & Tourism
    • Lifestyle
    • Science & Technology
  • Entertainment & Arts
  • Our Radio Schedule
No Result
View All Result
Plan B 104.5 FM
No Result
View All Result
Home Featured

Free Trade Pact Could Boost Africa’s Income By $450 Billion – Report

Share on FacebookShare on Twitter

The African Continental Free Trade Area (AfCFTA) is a major opportunity for countries to boost growth, reduce poverty, and broaden economic inclusion, a new World Bank report has found.

If implemented fully, the trade pact could boost regional income by seven percent or $450 billion, speed up wage growth for women, and lift 30 million people out of extreme poverty by 2035.

The report suggests that achieving these gains will be particularly important given the economic damage caused by the COVID-19 (coronavirus) pandemic, which is expected to cause up to $79 billion in output losses in Africa in 2020.

The pandemic has already caused major disruptions to trade across the continent, including in critical goods, such as medical supplies and food. Most of AfCFTA’s income gains are likely to come from measures that cut red tape and simplify customs procedures.

Tariff liberalisation accompanied by a reduction in non-tariff barriers—such as quotas and rules of origin—would boost income by 2.4 percent, or about $153 billion.

The remainder—$292 billion—would come from trade-facilitation measures that reduce red tape, lower compliance costs for businesses engaged in trade, and make it easier for African businesses to integrate into global supply chains, the report said.

Successful implementation of AfCFTA would help cushion the negative effects of COVID-19 on economic growth by supporting regional trade and value chains through the reduction of trade costs.

In the longer term, AfCFTA would provide a path for integration and growth-enhancing reforms for African countries.

By replacing the patchwork of regional agreements, streamlining border procedures, and prioritising trade reforms, AfCFTA could help African countries increase their resiliency in the face of future economic shocks.

“The African Continental Free Trade Area has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans,” said Albert Zeufack, the World Bank’s Chief Economist for Africa.

“The AfCFTA is expected to lift around 68 million people out of moderate poverty and make African countries more competitive. But its successful implementation will be key, including careful monitoring of impacts on all workers –women and men, skilled and unskilled—across all countries and sectors, ensuring the agreement’s full benefit.”

According to the report, the agreement would reshape markets and economies across the region, leading to the creation of new industries and the expansion of key sectors.
Overall, economic gains would vary, with the largest gains going to countries that currently have high trade costs.

Côte d’Ivoire and Zimbabwe—where trade costs are among the region’s highest—would see the biggest gains, with each increasing income by 14 percent.

AfCFTA would also significantly boost African trade, particularly, intraregional trade in manufacturing. Intra-continental exports would increase by 81 percent, while the increase to non-African countries would be 19 percent.

Implementation of the agreement would also spur larger wage gains for women (an increase of 10.5 percent by 2035) than for men (9.9 percent). It would also boost wages for skilled and unskilled workers alike—10.3 percent for unskilled workers, and 9.8 percent for skilled workers.

This report is designed to help countries implement policies that can maximise the agreement’s potential gains while minimising risks.

Creating a continent-wide market will require a determined effort to reduce all trade costs. This will require legislation to enable goods, capital, and information to flow freely and at easily across borders.

Countries that do so will be able to attract foreign investment and increase competition that can increase productivity and innovation by domestic firms. Governments will also need to prepare their workforces to take advantage of new opportunities with new policies designed to reduce the costs of job-switching.

Previous Post

The Murder Of 90-Year-Old Woman Is Evil – Chief Imam

Next Post

‘All Die Be Die’, Defend Yourselves – NUTAG President To Nigerians As 150 Shops Closed

Related Posts

Memo to Dame: I stand by my comment, I saw it – Srem-Sai
News

Ghost Names Scandal: NSS Loot Suspects Ready To Refund Over ¢560m – Deputy AG Srem Sai

June 14, 2025
Family Fumes As Dubai Firm Buries Nigerian Man Killed In Factory Accident Without Their Knowledge
News

14-year-old BECE Candidate Dies After First Paper At Kwahu Praso

June 13, 2025
At least 17 persons of interest named in National Service alleged corruption
News

Gifty Oware-Mensah Secured GH¢30m ADB Loan Using NSA Service Allowances – Ayine Alleges

June 13, 2025
Next Post

‘All Die Be Die’, Defend Yourselves – NUTAG President To Nigerians As 150 Shops Closed

Discussion about this post

ON Air

Listen LiVE

UP Next

Plan B 104.5 FM

© 2021 Plan B 104.5 FM - All Rights Reserve. Powered. Unity Websoft.

Navigate Site

  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Coronavirus
  • News
  • Politics
  • Business
  • Sports
  • World
  • More
    • Health
    • Education
    • Crime
    • Legal
    • Travel & Tourism
    • Lifestyle
    • Science & Technology
  • Entertainment & Arts
  • Our Radio Schedule

© 2021 Plan B 104.5 FM - All Rights Reserve. Powered. Unity Websoft.