Nigeria Submits Ratified AfCFTA Agreement To AU

Head of the Nigerian Mission to the African Union, Amb. Richard Adejola deposited the Instrument of Ratification of the Agreement Establishing the AfCFTA with the African Union legal depository on December 5, 2020. The instrument of ratification was received by Amb. Albert Muchanga, AU Commissioner for Trade and Industry, representing the AUC Chairperson
Head of the Nigerian Mission to the African Union, Amb. Richard Adejola (L) deposited the Instrument of Ratification of the Agreement Establishing the AfCFTA with the African Union legal depository on December 5, 2020.

 

Nigeria has deposited a ratified document of the agreement establishing the AfCFTA with the African Union legal depository, the Ministry of Foreign Affairs announced on Saturday.

The African Continental Free Trade Area, created in 2018, seeks to accelerate intra-African trade and boost Africa’s trading position in the global market.

READ ALSO: One Killed, Several Injured As Farmers And Herders Clash In Yobe

“On behalf of the Nigerian government, Amb. Richard Adejola, Head of the Nigerian Mission to the African Union, deposited the Instrument of Ratification of the Agreement Establishing the AfCFTA with the African Union legal depository, today, 5th December, 2020,” a tweet from the Ministry of Foreign Affairs said.

“The instrument of ratification was received by Amb. Albert Muchanga, AU Commissioner for Trade and Industry, representing the AUC Chairperson.”

President Muhammadu Buhari signed the AfCFTA in July 2019.

AfDB Will Support Africa With Quality Infrastructure In Healthcare, Manufacturing – Adesina

 

President of the African Development Bank Group (AfDB), Akinwumi Adesina has promised to give more support to ensure that the continent’s infrastructure gap is reduced by providing quality growth.

Dr Adesina, during his inaugural address after being sworn-in as AfDB President on Tuesday, pledged to expand partnership and tilt more attention to Africa.

The AfDB President, who was re-elected unanimously by the bank’s board of Governors to serve a second five-year term on August 27, said his administration will focus on the institution, people, delivery, and sustainability.

“The COVID-19 pandemic has changed everything globally; it has thrown Africa’s growth back. The continent has lost gains and economic growth that were achieved over the last decade.

“Africa’s recovery will therefore be long and challenging. Now we must help Africa build back boldly but smartly, paying greater attention to quality growth, especially in the areas of health, climate, and the environment.

“As we look into the future, working with the board of Directors, the bank will pay increased attention to supporting Africa with quality healthcare infrastructure and building on its comparative advantage in infrastructure. The bank’s infrastructure work will focus on economic infrastructure, quality physical infrastructure in health,” he added.

READ ALSO: Akinwumi Adesina Sworn-In For Second Term As AfDB President

 

President-elect of the African Development Bank, Dr Akinwumi Adesina, signs documents after taking the oath of office on Tuesday.

 

Dr Adesina also stated that the new opportunities provided by the pandemic will see additional growth trajectory in Africa’s industrialisation drive, alongside the Africa Continental Free Trade Agreement (AfCFTA).

“Covid-19 also opens up new opportunities and a greater sense of urgency to build Africa’s manufacturing capacity, industrial development, and critically-needed industrial value-chains that must be supported by enabling infrastructure and policies.

“Special attention will be given to regional industrial value chains and strengthening of financial markets in order to expand the intraregional trade and competitiveness and to boost Africa Continental Free Trade Area.”

He maintained that the continent still faces a lot of challenges and it is crucial that all the necessary support is received to bridge the gaps caused by the challenges.

“Your Excellency, let there be no doubt the challenges ahead are still many including poverty, inequality, fragility, high youth unemployment, significant infrastructure financing gaps, and sustainable debt management.

“As we look into the future, let me assure you, the bank will play a greater role in policy dialogue with Countries. We will support sustainable debt management, boost green growth, and accelerate the provision of jobs for youth on our beloved continent,” he stressed.

Africa Free-Trade Vision Clouded By COVID-19, Pace Of Talks

Badagry Free Trade Zone Licenced

 

A historic deal to smash down tariff barriers within Africa is being braked by the coronavirus pandemic and a thicket of negotiating problems.

The African Continental Free Trade Agreement (AfCFTA) was formally launched just over a year ago in a blaze of optimism.

The accord — styled as the biggest free-trade accord in the world in terms of population — gathers 54 out of 55 African countries, with Eritrea the only holdout.

It aims to phase out all tariffs on commerce on the continent of 1.2 billion people, a goal that backers say could give trade a mega-jolt as only 15 percent of trade by African nations is with continental neighbours compared to 70 percent with Europe.

It was supposed to take operational effect on Wednesday, July 1, but the timeline has slipped, under the complications caused by the COVID-19 outbreak but also the slow pace of negotiations themselves.

“Everybody can see, objectively, nothing can be done on the 1st of July,” AfCFTA’s brand-new secretary general, Wamkele Mene of South Africa, told AFP.

“Forty-two countries out of 55 in Africa are either in full or partial lockdown.”

A new date for January 2021 has been proposed by ambassadors at the Africa Union’s headquarters in Addis Ababa. The recommendation has yet to be adopted by heads of state.

Mene cautioned that the proposed date is itself subject to change.

“It really all depends on the pandemic,” he said.

Mene, who was sworn in in March, himself works in Addis, as AfCTA’s headquarters in Accra, Ghana, have yet to open because of the pandemic.

– Nigeria question –

Talks on the AfCFTA got underway in 2002 and inched towards an agreement that officially began life on May 30, 2019 after it crossed a threshold of ratification by at least 22 countries.

That number has edged up to 28, and includes economic heavyweights such as South Africa and Egypt, and middleweights including Morocco, Kenya and Ivory Coast.

But Nigeria — the most populous country in Africa, with around 200 million people — still has not ratified, nor have Algeria or energy exporter Angola.

“I know that Nigeria is committed to the agreement that we signed for the AfCFTA but of course COVID-19 has caused a delay in almost everything,” Nigerian Finance Minister Zainab Ahmed said.

“So, we may have to revisit the effective period for which this will start.”

In a shock move last August, Nigeria dramatically closed off its borders with neighbours, a move that it said aimed at preventing smuggling.

But the step was carried out unilaterally and breached free-trade agreements among members of the 15-member Economic Community of West African States (ECOWAS).

– Devil in the detail –

In addition to this worrying mood music from a country that was an enthusiastic backer at the dawn of the AfCFTA process, the effort to breathe life into the pact is a huge negotiation task.

Among the big questions that have to be thrashed out are the rules of origin — the identification of the contents of a product that are the nuts and bolts of any free-trade accord — and detailed timetables for scaling back tariffs.

Then there is the task of figuring out how AfCFTA should dovetail with eight existing regional organisations in Africa, such as ECOWAS and the six-nation East African Community (EAC).

“The regional economic communities remain, including the customs unions in Africa such as the EAC, ECOWAS and so on,” said Mene.

“They remain with their intra-regional obligations that they have to one another. We build on the liberalisation and the progress that those regional economic communities have achieved already.”

He said negotiations aim to scrap customs duties on 97 percent of products within 15 years.

According to the International Monetary Fund (IMF), this would encourage intra-African trade to rise by around 16 percent — an additional $16 billion (14.25 billion euros) — annually.

AfCFTA has raised fears of a destructive impact on small manufacturers and family farms if borders are fully opened to imports.

With such concerns in mind, a more progressive phaseout is being envisaged for less developed economies.

Tariffs on intra-African trade average 6.1 percent more than on exports to non-African countries.

But Lumkile Mondi, a senior lecturer at the University of the Witwatersrand in South Africa, said duty elimination is only one piece of Africa’s coveted single market.

Non-tariff bottlenecks to trade include poor infrastructure.

Europe’s internal market, constructed painfully over decades, has been knitted together by motorways, railways, flight routes, energy pipelines, telecom networks and so on.

In Africa, debt levels will be a handicap to creating these crucial links, said Mondi.

“African countries themselves being highly indebted means integration is going to take much longer to really be achieved,” he said.

AFP

Liman Confirms New Commencement Date For AfCFTA

File: Acting Chief Trade Negotiator/Director-General, Nigerian Office for Trade Negotiations, Mr. Victor Liman
File Photo: Acting Chief Trade Negotiator/Director-General, Nigerian Office for Trade Negotiations, Mr. Victor Liman

 

The African Continental Free Trade Agreement (AfCFTA) is expected to commence from January 1, 2021.

This was confirmed to Channels Television by the Acting Chief Trade Negotiator/Director-General, Nigerian Office for Trade Negotiations, Mr. Victor Liman on Thursday.

The AfCFTA was scheduled to kick-off on July 1, 2020, but was postponed due to the impact of COVID-19 pandemic.

READ ALSO: Buhari Approves Import Duty, VAT Waivers For Critical Medical Equipment

The agreement entered its operational phase on July 7, 2019, following the ratification by 54 of all 55 African countries.

According to Liman, the Extraordinary Africa Union Summits scheduled to be held in South Africa on May 30, 2020, has been postponed to December 5, 2020.

The summit is aimed at encouraging trade negotiators to complete their bargaining on tariff reductions, rules of origin, and other necessary regulations.

He added that the new date will also give sufficient time for trade ministers and their experts to finalise negotiations and prepare adequately for the Summits.

The AfCFTA agreement, which is aimed at removing trade barriers and also boost intra-Africa trade, was organised by the AU and signed on by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018.

AfCFTA Implementation: We Are Adopting Sector-Wide Approach, Says Liman

 

The Federal Government has adopted a sectoral engagement approach and commenced consultation with critical stakeholders in five key sectors of the economy, in order to ensure effective implementation of the Africa Continental Free Trade Area (AfCFTA) in July 2020.

This was disclosed by the Acting Chief Trade Negotiator and Director General, Nigerian Office for Trade Negotiations (NOTN), Victor Liman on Monday.

Mr Liman, speaking after a meeting with representatives of Ministries, Departments, and Agencies in Abuja, stated that the five sectors include; business and professional services, communications, transport, tourism, and financial services.

READ ALSO: Nigeria Records Highest Quarterly GDP Growth Since 2016 Recession

He explained that the AfCFTA will be the world’s largest free trade area and is set to boost intra-Africa trade by 60 percent before 2022.

“We have been conducting a sectoral engagement, consultation with critical relevant and strategic stakeholders; those who are the relevant operators in the various services sector that we have decided to liberalise at the AfCFTA.

“The five key sectors are business and professional services, communications, transport, tourism, and financial services. Having had that both on the private and public sectors, we then decided that it is important for us to now call an all-sectoral consultative forum so that people come together and review what we have done, revalidate, adopt and sign-off on what we have done.”

Stressing further, Mr Liman urged stakeholders to understand the modalities, engage and contribute their observations on the progress made so far.

“It is important for the country because of the fact that whatsoever we do at the AfCFTA will affect our economy, GDP growth, job creation, welfare, productivity, infrastructure, and competitiveness in particular for the country.

“I think people need to understand this and they have to engage and interrogate and contribute their own observations and positions to what we have done.”

AfCFTA: Buhari Inaugurates National Action Committee

 

President Muhammadu Buhari has inaugurated the National Action Committee (NAC) for implementation of the African Continental Free Trade Area (AfCFTA) Agreement.

In July 2019, President Buhari approved the establishment of the committee with the mandate to undertake a process of engagement with stakeholders to sensitize them on the opportunities and challenges of the AfCFTA.

The committee is made up of representatives of Ministries and Agencies with competent and relevant jurisdiction, and selected stakeholder groups from the private sector and the civil society

RELATED: AfCFTA: Buhari Approves Establishment Of National Action Committee (NAC)

At the inauguration ceremony which took place on Friday, December 20, 2019, at the statehouse, President Buhari charged the committee to support Ministries, Departments and Agencies as well as businesses, achieve the full benefits of the agreement.

He said the goal of job creation; employment is one of the major reasons of the agreement, urging members to submit a report to him by March of 2020.

President Buhari also revealed that engagements with the Ninth Assembly will start soon.

Nigeria signed the AfCFTA agreement at the 12th Extraordinary Session of the African Union (AU) Heads of State on 7th July 2019, in Niamey, Republic of Niger.

Upon ratification, Nigeria will domesticate the Agreement by incorporating it into existing laws or enacting new laws, as appropriate.

The AfCFTA Agreement, which creates a single market for goods and services and movement of persons to increase intra-African trade and deepen African economic integration, has Phase I and Phase II negotiations.

Buhari Meets With Leadership Of Lagos State Chamber Of Commerce, Industry

 

President Muhammadu Buhari has met with the leadership of the Lagos State Chamber of Commerce and Industry (LCCI), at the State House.

At the meeting, the president assured the group of the Federal Government’s continuous support towards the private sector.

Speaking further, he also lamented over the persistent gridlock in the Apapa area of Lagos State, which has posed a serious challenge for businesses in the area.

He, however, promised to work more with the state government to resolve the challenge.

Read Also: Seven Key Facts About AfCFTA

The President also spoke about the recent signing of the African Continental Free Trade Agreement (AfCFTA).

While the agreement has several advantages such as the creation of a single market, followed by free movement and a single-currency union, the president highlighted some potential challenges.

According to him, the agreement is both an opportunity and a threat to the country as the rules can be subject to abuse.

He, therefore, called for proper measures to be put in place to protect African manufacturers.

AfCFTA: MAN Urges FG To Adopt Technology-Based Border Policing

 

The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to adopt technology-based border policing and surveillance in addressing the issue of the country’s porous border which has encouraged smuggling of foreign goods.

According to MAN, the move will check abuse of the intra-Africa Trade protocols and trade malpractices, following the signing of the Africa Continental Free Trade Area (AfCFTA) Agreement by President Muhammadu Buhari.

In a statement by MAN’s Director-General, Segun Ajayi-Kadir, the government should enhance the capacity of the manufacturing sector and other economic actors to take advantage of the opportunities in the continental free trade area.

“In addressing the issue of the country’s porous border which encouraged smuggling of foreign goods, there could not have been a better time to adopt technology-based border policing and surveillance to check abuse of the intra-Africa Trade protocols and trade malpractices.

“Of urgent attention is for the Government to initiate policies that would encourage startups in the Small and Medium Scale Enterprise, this sector contributes over 80% of the Gross Domestic Product, and if properly incentivized and supported could be able to ramp up production and total exports of the country.”

READ ALSO: IMF Boss Lagarde Announces Resignation

On the side of the private sector, MAN called on the government to provide a conducive environment, tackle infrastructure challenges and initiate policies to aid regional competitiveness.

“We shall work together to prevail on the Government to do its own bit by providing the conducive atmosphere. The infrastructure challenges such as poor electricity supply, deplorable road network and lack of adequate transportation system (rail network) etc. that constitute the supply constraints should be removed.

“Needed policies to improve the macroeconomic environment should be put in place and existing ease of doing business initiatives strengthened, especially to lower cost and grow existing capacities.

“To aid the competitiveness of local manufacturers, the government should strongly address the issue of multiple taxations and over-regulation of the production sector which has added to the existing myriad of challenges.

“For an open trade arrangement of this nature, we recommend that Industries that would be negatively impacted by the influx of goods should be supported to invest in new areas and displaced labour retrained to take on new employment or vocation.”

Seven Key Facts About AfCFTA

 

Nigeria has joined other African countries in signing the African Continental Free Trade agreement (AfCFTA).

The agreement which has now been signed by 54 of 55 countries is expected to be officially launched later today in what the AU commission Chairman Moussa Faki has said would be a “historic” moment.

Read Also: Nigeria, Benin Sign Landmark African Trade Accord At African Union Summit

Below are three facts to note about the agreement.

1. The agreement was brokered by the African Union (AU) and as of April 2019, 22 countries had ratified the agreement – the exact number of states needed to allow the African Continental Free Trade Area (AfCFTA), come into effect.

2. As of March 21, 2018, 44 of its 55 member states had signed the agreement in Kigali, Rwanda.

3. It has a goal of creating a single market – the African Continental Free Trade Area, followed by free movement and a single-currency union.

4. The free-trade area is the largest in the world in terms of participating countries since the formation of the World Trade Organization.

5. Member states are required to remove tariffs from 90% of goods, allowing free access to commodities, goods, and services across the continent.

6. The United Nations Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52 per cent by 2022.

7. Only Eritrea is yet to sign the agreement.

Buhari Arrives Niamey Ahead Of AU Summit

 

President Muhammadu Buhari has arrived in Niger for the 12th Extra-Ordinary Session of the Assembly of African Union Heads of State and Government.

President Buhari departed the country on Saturday morning to join other African leaders.

The Extraordinary Session of the Assembly of the Union is expected to launch the operational instruments of the Agreement establishing AfCFTA, which Nigeria is expected to sign.

READ ALSO: Security Issues Are Being Seriously Tackled, Says Buhari

Prior to the Summit, the Buhari Administration had embarked on extensive consultations with stakeholders, culminating in the submission of the report by the Presidential Committee to Assess Impact and Readiness of Nigeria to join the AfCFTA.

The committee had recommended that Nigeria should sign the Agreement which aims to boost intra-African trade.

Buhari To Receive AFCFTA Report In January, Says Presidency

Buhari To Receive AFCFTA Report In January, Says Presidency
President Muhammadu Buhari (file)

 

The Presidential Steering Committee on the African Continental Free Trade Area (AfCFTA) Impact and Readiness Assessment will present its recommendations to President Muhammadu Buhari in January 2019.

Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, disclosed this in a statement on Thursday in Abuja.

He noted that Nigeria has yet to sign the AfCFTA agreement, which seeks to remove all forms of restrictions to trade and investment flows within the African continent.

The presidential aide said the present administration had launched a nationwide stakeholder consultation with the purpose of reflecting a wide range of views in the technical instruments.

“It would be recalled that on October 22, 2018, while inaugurating the Committee at the Presidential Villa, President Buhari had charged it to assess the extent to which Nigeria is ready to join the agreement, and what the impact of doing so would be,” he said.

“The Committee, which was given 12 weeks to conclude its assignment, has held wide consultations with industry groups and stakeholders, including the Manufacturers Association of Nigeria (MAN).

“While opinion is still divided in Nigeria on the merits and demerits as well as the timing of joining the AfCFTA, the committee has commissioned a study to shed more light on the public debate on the issue in the aftermath of a recent report published by MAN.”

Shehu quoted MAN in its report that if Nigeria ratifies the agreement, import surges would range from 27.6 per cent for textile, apparel and footwear sub-sector to 180.7 per cent for chemical and pharmaceutical products during the three phases of liberalising tariff lines with 5 per cent tariff rates.

“According to MAN, in contrast, the import surge will be as high as over 2000 per cent in motor vehicle assembly sub-sector over 15 years when 10 per cent tariff rates are liberalised. This will instantly spell doom for the automotive aspect of Nigeria’s National Industrial Revolution Plan (NIRP).”

The MAN study, he said, also shows differing output, employment and investment effects across manufacturing sub-sectors.

“For instance, four sub-sectors (Food, beverages and tobacco; wood and wood products; textile, apparel and footwear; and non-metallic) will likely see substantially high rates of increase in imports and import competition coupled with a substantial decrease in output,” he added.

The President’s spokesman highlighted similar major changes in employment which he said could be found in three manufacturing sub-sectors – chemical and pharmaceutical products; textile, apparel and footwear; and non-metallic sub-sectors.

According to him, some sectors such as electrical and electronics and wood and wood products will lay off workers.

He said, “The MAN study goes further to show that huge investments are required in chemical and pharmaceutical products and textile, apparel and footwear sectors, while moderate investments are required in electrical and electronics.”

“The key message from the MAN study is that despite challenges, Nigeria should go ahead and sign the AfCFTA agreement with an informed mindset, committing itself to engaging in negotiations of the AfCFTA, embed itself in the process and ensure that the AfCFTA delivers good results for its manufacturers, especially as it relates to taking benefits of the market access opportunities on the rest of the continent.”

Shehu revealed that the study also offered recommendations on how expected losses can be defrayed for the manufacturers and how policies can be used to deal with expected losses.

He stressed that the study focused mainly on “defensive” dimension of trade in goods (i.e. import penetration).

The presidential aided, however, said the report has not given adequate attention to “market access” opportunities (i.e. export penetration) and does not include the analysis of trade in services.

“Therefore, another study has been commissioned recently to address the gaps in the MAN study and is expected to be completed by the end of December 2018,” he said.

“Once completed, the study is expected to shed more light on the public debate and add value to the work of the Presidential Steering Committee on the AfCFTA Impact and Readiness Assessment.”

The presidential aide added, “We can recall that in the absence of the above facts, the administration has faced criticism over the failure to sign.”

AfCFTA is designed to be a pan-African free trade area that will create a single market for goods and services.

It also aims to liberalise and facilitate the movement of investment and business people across the continent.

Forty-four of the 55 African countries signed the AfCFTA agreement on March 21 in Kigali, Rwanda.

In December 2018, the number of countries that signed the AfCFTA agreement increased to 49 and 13 countries have already ratified it.

The agreement will become binding and implementation can begin once 22 states have ratified it.

FEC Approves Agreement On African Free Trade

FEC Approves Agreement On African Free Trade
Vice President Yemi Osinbajo (R) presides over FEC meeting on March 14, 2018, in Abuja.

 

Nigeria is set to sign the framework agreement for the establishment of African Continental Free Trade Area (AfCFTA).

The Federal Executive Council (FEC) gave the approval on Wednesday during the weekly meeting chaired by the Vice President, Professor Yemi Osinbajo, at the State House in Abuja.

Consequently, Nigeria is expected to seal the agreement during the Extraordinary Meeting of African Union Heads of State and Government to be held on March 21, 2018, in Kigali, Rwanda.

The Presidency revealed the new development in a statement from the Office of the Special Adviser to the President on Media and Publicity.

Read the background and what the country stands to gain below:

 

Fact Sheet On The African Continental Free Trade Area (AfCFTA) And Benefits For Nigeria

BACKGROUND

  • The decision to establish the African Continental Free Trade Area (AfCFTA) was taken in 2012 by all Heads of State and Government of the African Union (AU) at their 18th Ordinary Session.
  • AfCFTA is the first step in the implementation of AU Agenda 2063: the “Vision” for an integrated, prosperous and peaceful Africa.
  • Actual Negotiations for the AfCFTA were launched at the AU Johannesburg Summit in 2015.
  • The Negotiations are in two Stages: Stage 1, covering Trade in Goods and Services; and, Stage 2, covering intellectual property, competition policy and investment.
  • Stage 1 negotiations have been concluded in March 2018. During the Extraordinary Summit of African Union Heads of State and Government to be held on 21st March 2018 in Kigali, Rwanda, Heads of State and Government shall “adopt, sign and launch the African Continental Free Trade Area”.
  • The Agreement to establish the AfCFTA will launch the “Single Liberalized Market for Trade in Goods and Services”.
  • At launch and when in force, the AfCFTA shall be the largest Free Trade Area (FTA) in the global economy, by number.
  • The AfCFTA is a negotiated rules-based system, to establish the rule of law in trade, deepen, and expand intra-Africa trade from its very low base of 14%.

 

Benefits For Nigeria: the gains are significant. The AfCFTA would:

  1. Expand market access for Nigeria’s exporters of goods and services, spur growth and boost job creation.
  2. Eliminate barriers against Nigeria’s products and provide a Dispute Settlement Mechanism for stopping the hostile and discriminatory treatment directed against Nigerian natural and corporate business persons in other African countries.
  3. Establish rules-based trade governance in intra-African trade to invoke trade remedies, such as safeguards, anti-dumping, and countervailing duties against unfair trade practices, including dumping, trans-shipment of concealed origin of products.
  4. Support the industrial policy of Nigeria through the negotiated and agreed “Exclusion and Sensitive category lists” to provide space for Nigeria’s infant industries.
  5. Improve competitiveness, the enabling environment for business, consolidate and expand Nigeria’s position as the number 1 economy in Africa.
  6. Stimulate, specifically, an estimated 8.18 percent increase in Nigeria’s total exports, with a small structural shift in Nigeria’s economy towards manufacturing and services. This is expected to lead to a total increase in Nigerian economic welfare by 0.62% – equivalent to around US$2.9 billion in 2018 terms. Changes would result from tariff reduction, ease of doing business and, trade facilitation.
  7. Provide a platform for Small and Medium Enterprises (SMEs) integration into the regional economy and accelerate women’s empowerment.
  8. Provide an expanded platform for Nigerian manufacturers and service providers for connection to regional and continental value chains.

 

  • Benefits For Africa, the benefits are considerable. The AfCFTA would:
  1. Cover a market of 1.2 billion Africans with a combined GDP of US$2.5 trillion.
  2. The AfCFTA is expected to increase intra-African trade by up to 52.3%.
  3. Enable all AU countries to share in the welfare gains, which are estimated at around 2.64% of continental GDP – roughly $65 billion in 2018 terms.
  4. Increase real wages for unskilled workers in the agricultural and non-agricultural sectors, as well as for skilled workers, with a small shift in employment expected from agricultural to non-agricultural sectors.
  5. Be accompanied by additional dynamic benefits, notably, export diversification, durable sustained growth, an enlarged regional market that better attracts FDI, with wider economic space for industrialization and catalytic effects for structural transformation.
  6. Expand the size of Africa’s economy to US$29 trillion by 2050, as estimated by the United Nations Economic Commission for Africa.