According to the International Monetary Fund, removing trade restrictions between African nations will assist 50 million people to escape poverty.
This was stated by the IMF in its most recent report, “Trade Integration in Africa: Unleashing the Continent’s Potential in a Changing World.”
In the report, the IMF also predicted that the removal of trade barriers would result in a 53% rise in the average level of trade in goods between African nations. It was also said in the report that it will rise by 15% for the remainder of the world.
It concludes that removing trade barriers would boost average goods trade between African nations by 53% and with the rest of the world by 15%, increase average real per capita GDP in African nations by more than 10%, and assist in lifting an estimated 30–50 million people out of extreme poverty.
The African Continental Free Trade Agreement, according to the Washington, DC-based organization, could bring about significant benefits for the continent.
The African Continental Free Trade Area’s successful implementation “could unlock significant benefits, including for jobs and income,” it continued.
The report went on to say, in part, The article explores the influence of trade policy and the broader trade-enabling environment in shaping the bilateral goods trade flows and country-level trade in services. It clarifies how the trade area’s implementation and its accompanying policies could increase commerce and revenue while also assisting African countries in integrating into regional value chains.
