Regulating small cross border traders as a solution to increase intra African trade: implications of the African continental free trade area
Abstract
Background: In January 2012, fifty-four African countries agreed to establish the African Continental Free Trade Area (AfCFTA) during the 18th Ordinary session of the assembly of heads of state and government of the African Union (AU) held in Addis Ababa, Ethiopia. The formation of AfCFTA dates back to July 1991 when the then Organisation of African Unity (OAU) member countries adopted the Abuja Treaty that set the creation of Free Trade Areas (FTAs) in each region as the first step towards the creation of an African Economic Community (AEC) by 2028, followed by customs unions, common markets and monetary unions.The agreement establishing the AfCFTA was signed by the AU heads of state and government in Kigali, Rwanda on 21 March 2018,3 as one of the flagship projects of the AU Agenda 2063.
The AfCFTA entered into force on 30th May 2019 after 24 Member states deposited their instruments of ratification. The AfCFTA marks the start of a new era for mega-regional trade relations on the African continent and enhanced efforts at deepening trade and regional integration. Amongst other objectives, the AfCFTA aims to create a single market for goods and services, facilitate the movement of persons, remove Non-Tariff Barriers and tariff to trade and promote industrial development and inclusive socio-economic growth on the continent in order to boost intra-African trade
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