Shared prosperity through the African Continental Free Trade Area: Realizing export potential and challenges towards greater inclusiveness of trade

Abstract

UITED NIONS U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T Africa has experienced remarkable growth since 2000, yet this has not translated into significantly improved livelihoods for most Africans. Fewer than half of countries in Africa have experienced inclusive growth in recent decades. This report aims to equip Governments in Africa and development partners with knowledge of how the African Continental Free Trade Area can be beneficial for inclusive growth and how complementary policies are necessary to make the Free Trade Area inclusive within and across countries in Africa. To realize the export potential of Africa, intra-African tariff barriers and non-tariff barriers need to be reduced, and productive capacities need to be increased to facilitate regional trade. Regional productive capacities, value chain development in agrifood processing and the vehicles industry are identified as potential drivers of transformative growth. An analysis is provided of how the expected gains from trade, production, investment and growth opportunities under the African Continental Free Trade Area can be inclusive. For the benefits of the Free Trade Area to be fully harnessed and inclusive, informal trade and its stakeholders should be considered in both design and implementation. unctad.org/Africa/series