The African union (au) has chosen “acceleration of AfCFTA implementation” as its theme for 2023. The AfCFTA (African Continental Free Trade Area) is aimed at creating a single market for goods and services of almost 1.3bn people across Africa and deepening the economic integration of the continent.
Africa day is an annual celebration of the achievements and potential of the african continent which is celebrated in Africa and countries round the world. Its date – may 25 – commemorates the founding of the organization of African unity (OAU), the precursor of the current African Union.
This year marks the 60th anniversary of the signing of its founding charter in Addis Ababa, Ethiopia.
Trade integration across Africa has long been limited by outdated infrastructure and differing regulations across dozens of markets. Intra-African exports were 16.6% of total exports in 2017, compared with 68.1% in Europe, 59.4% in Asia, 55% in America and 7% in Oceania.
When fully implemented, the AfCFTA will be the world’s biggest largest free trade area, with a combined gross domestic product of around $3.4 trillion. Fifty-four of the continent’s 55 countries are signatories to its founding agreement.
The World Bank has estimated that by 2035, real income gains from full implementation of the afcfta could be nearly $450bn. It has also suggested that Africa could see a rise in foreign direct investment by up to 159%, and a rise in exports to the rest of the world of 32%, while intra-African exports could grow by 109%, led by manufactured goods.