The African Development Bank (AfDB) has provided a $4.8m grant to support the African Union’s efforts to roll out the continental free-trade area.
The grant forms part of a series of interventions by the development bank to accelerate implementation of the free-trade agreement. The trade agreement is seen as a major force for integrating the 55-nation continent and transforming its economy.
Intra-African trade remains low compared with other major regions such as the EU and Asia.
The trade agreement is expected to expand intra-African trade by up to $35bn per year, ease movement of goods, services and people across the continent’s borders and boost agriculture and industrial exports by 7% and 5% respectively.
Speaking on behalf of the AfDB’s director of industrial & trade development department, Obed Andoh Mensah said the trade deal will help stabilise African countries, allow small- and medium-sized enterprises to flourish, promote industrialisation and lift millions out of poverty.
“If the AfCFTA is complemented by trade facilitation reforms, reduction in nontariff barriers, improved infrastructure and policy measures to encourage employment and private sector investments, it will stimulate poverty reduction and socioeconomic development across Africa,” he said.
BDL