Market News
'We are on our own'- Africa looks within to weather growing global tariff turmoil - REUTERS
By Colleen Goko and Libby George
Summary
- Free trade area pact ratified by 49 countries, only 24 use it
- $100 bln infrastructure deficit hinders trade growth
- Some leaders want more trade in local currencies
JOHANNESBURG, July 18 (Reuters) - African leaders are pushing to speed up implementation of a continent-wide deal to boost trade as growing concerns over U.S. tariffs, including rates as high as 50% for Lesotho, threaten to decimate industries and hit economic growth.
The African Continental Free Trade Area pact designed to unify all 1.4 billion people under Africa's more than 50 nations into a single market, has been legally ratified by 49 countries and officially launched trading in 2021.
But translation into action has been sluggish, with less than half of member states actively trading under the framework.
The World Bank estimates AfCFTA could increase Africa's intra-continental exports by 81% and proponents point to last year's 12.4% boost in intra-African trade, to $208 billion, according to Afreximbank figures, as early signs of success.
