This is the latest African news update, the African union have officially launched the continental free trade agreement, this agreement was passed on Sunday at the African union summit that took place in Niamey , the capital city if nigerAfter four years of talks, an agreement to form a 55-nation free trade zone was reached in March, paving the way for Sunday’s African Union summit in Niger where Ghana was announced as the host of the trade zone’s future headquarters and discussions were held on how exactly the bloc will operate
To help lower cost, the Africa union has also launched the use of a pan African payment system to avoid the use of foreign currencies like the dollar, euro and pounds
,if this agreement successful, it would unite 1.3 billion people, create a $3.4 trillion economic bloc, and usher in a new era of development in Africa
It is hoped the African Continental Free Trade Area (AfCFTA) – the largest since the creation of the World Trade Organization in 1994 – will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains, and spreading expertise.
The eyes of the world are turned towards Africa,” Egyptian President and African Union Chairman Abdel Fattah el-Sisi said at the summit’s opening ceremony. He further went on tho say and I quaote
“The success of the African continental free trade area will be the real test to achieve the economic growth that will turn our people’s dream of welfare and quality of life into a reality,”
The IMF in a May report described the free-trade zone as a potential “economic game changer” of the kind that has boosted growth in Europe and North America, but it added a note of caution. “Reducing tariffs alone is not sufficient,” it said.
Listen to what the south African president Cyril ramaphosa had to say to that regards
Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy, and corruption that have held back growth and integration.