The African Continental Free Trade Area (AfCFTA), established in 2018, will create the world’s largest free trade area, bringing transformative change and tremendous opportunity to African economies and business environments.
The African Continental Free Trade Area (AfCFTA), established in 2018, will create the world’s largest free trade area, bringing transformative change and tremendous opportunity to African economies and business environments.
Its adoption and implementation will accelerate intra-African trade and develop regional and local value chains, creating new business dynamics that offer investors access to a population of 1.7 billion people with combined business and consumer spending reaching $6.7 billion by 2030.
Global businesses have an important role to play in accelerating the implementation of the AfCFTA. This report outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in successfully entering and expanding in this area
Officially launched in 2021, the African Continental Free Trade Area (AfCFTA) creates a single market projected to grow to 1.7 billion people and $6.7 trillion in consumer and business spending by 2030.
The preferential trade agreement will increase international exports and intra-African trade, unlocking tremendous opportunities for local and global businesses to enter into and expand throughout new markets across the continent. Four sectors – automotive; agriculture and agro-processing; pharmaceuticals; and transport and logistics – were identified by the AfCFTA as important areas of business due to their potential for meeting local demand with local production.
To better understand the business opportunities, operational tools and possible strategies for success in using the AfCFTA, this insight report offers both a systematic analysis of the important trends and opportunities and an investigation into some illustrative examples of success in each sector. It builds on macro trends in the region as well as insights from Landry Signé’s book Unlocking Africa’s Business Potential,2 the AfCFTA Secretariat, the World Economic Forum and case studies from companies currently operating in Africa to explore how the private sector can seize the opportunities of the AfCFTA for the mutual benefit of businesses and African economies.
For full report: https://www.weforum.org/reports/afcfta-a-new-era-for-global-business-and-investment-in-africa/
Source: WEF
