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6 REASONS WHY AFRICA ' S NEW FREE TRADE AREA IS A GAME CHANGER .
So what exactly is this agreement ? And how is it going to benefit us ? Let ' s take a look at a brief summary below . by Tumelo Chulu ( South Africa ) Although it was signed on the 21st March 2018 , the African Continental Free Trade Area ( AfCFTA ) only came into effect on the 1st of January this year . Measured by the number of countries participating , the AfCFTA agreement will create the largest free trade area in the world . With the exception of Eritrea , all 55 AU member countries signed up .
The Trade Agreement In Brief Africa ' s intra-continental exports are low compared to that of Asia and Europe . Therefore , there is lots of room for growth . But this agreement is just the beginning . Negotiations with regards to the trade in goods and services across the area are on-going . The agreement aims to :
• reduce trade tariffs among member countries ;
• increase manufacturing and general output due to an increase in demand ;
• double intra-continental trade by 2022 ;