An African free-trade zone came into force Thursday; a step toward creating what the African Union hopes will be a continent-wide market of 1.2 billion people worth $2.5 trillion.
The African Continental Free Trade Area had been ratified by 22 countries by April 29, the requisite number for formally notifying the AU. That paved the way for it to take effect 30 days later as stipulated in its statutes.
The agreement’s operational phase is to be launched on July 7 at an AU summit in Niger. There are still a number of outstanding issues to be resolved, including arbitration measures, certifying the origins of goods, tackling corruption and improving infrastructure.
Fifty-two of the AU’s 55 member states have signed the agreement to establish the free trade area since March 2018, with the notable exception of Nigeria, the largest economy on the continent.
But some of Africa’s other economic heavyweights — including Ethiopia, Kenya, Egypt and South Africa — are among the 24 nations that have formally ratified it. In the last month, Zimbabwe and Burkina Faso joined the fold.
