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 . Benefits Of The Trade Area Agreement
Protect Women Traders
Women are estimated to account for 70 % of the informal cross-border traders . Informal trading makes them vulnerable to violence and harassment . With the reduces tariffs , it will become affordable for women to trade through formal channels .
Grow Small Businesses
With reduced costs for intra-continental trading , small businesses can export their goods to other countries . Increase in demand will create more employment opportunities and incomes .
Create A Single Market
By creating a single market , the AfCFTA will not only increase the trade of goods and services . It will also promote investment and competition policies , intellectual property rights and direct foreign investment . Reduce Poverty Through Trade The target market for the area is expected to be 1.27 billion people .
With such a huge market it will become attractive for local businesses to enter the export market , triggering an increase in employment opportunities and income .
Promote Good Governance
The AfCFTA will promote good governance across Africa , by having international trade transactions that are legitimate and transparent . This will reduce fraud and corruption , illegal goods crossing the border and robbing the government of any revenue .
Encourage Trade Diversity
This trade initiative will help diversify intracontinental trade by encouraging the trade in a diversity of goods , instead of just the natural resources .
In Conclusion
Despite the momentum around the agreement , its success depends not only on the member countries ratifying it , but also on the implementation and compliance . Regardless of the many hurdles that still need to be overcome , the AfCFTA promises to bring much needed prosperity to the continent .
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