The African Continental Free Trade Area (AfCFTA) is expected to generate a 1.2% increase in Africa's GDP and a 0.9% improvement in its well-being by 2045.

According to the Economic Report on Africa 2025, published on the occasion of the 57th session of the United Nations Economic Commission for Africa (ECA), held from March 12 to 18 in Addis Ababa, high inflation, budget deficits, and debt vulnerability remain major obstacles to growth. The report states that Africa’s debt-to-GDP ratio is expected to decrease from 67.3% in 2023 to 62.1% in 2025, but debt servicing costs remain prohibitive, leaving no room for development spending

To support the AfCFTA, Africa will need to invest $120.83 billion in transport equipment by 2030 while streamlining regulations to improve market access and foster innovation, according to the report.

Trade facilitation measures, such as the harmonization of customs procedures and the reduction of non-tariff barriers, are essential to fully leverage the Zone, the document states.

It is worth noting that this 57th session of the ECA was held under the theme: "Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area: A Proposal for Transformative Strategic Actions."

The source of the article is l'observateur