0Magreth NunuheWindhoek – Africa can make economic gains of US$17.95 billion in welfare, 3.15% average growth in GDP, export growth of 5.25% and import growth volumes of 6.59% if it eliminates tariffs on all trade and reduces non-tariff barriers (NTBs) in intra-African trade. This is according to the African Export-Import Bank’s (Afreximbank) 2018 African Trade Report titled ‘Boosting Intra-African Trade: Implications of the African Continental Free Trade Area Agreement’. If Africa were to only eliminate tariffs, the continent could experience sluggish GDP growth and decline in total welfare gains as per the African Continental Free Trade Area Agreement (AfCFTA)’s ambition to free up trade, deepen intra-African trade and regional integration. In the case of Southern Africa, complete tariff removal on all trade and a reduction in NTBs for intra-African trade could economically benefit Zambia, Malawi and Namibia whose GDPs could grow by 10.16%, 7.12% and 5.82%, respectively, according to Afreximbank. In 2014, the European Union accounted for 63% of total trade, North America (50%) and Asia (52%), while Intra-African trade only accounted for 15% of overall trade in the same year.

Source: The North Africa Journal February 25, 2019 12:22 UTC