As the African Continental Free Trade Area (AfCFTA) moves towards full operationalisation, it is attracting a growing interest from international investors eager to tap into the opportunities it presents. To further support its implementation, the UK has committed $45.9 million towards the AfCFTA, a move announced by the UK Department for International Trade on Tuesday, 29 March 2022.
This financial support will be directed through the UK’s partners in Africa, notably TradeMark East Africa (TMEA) and the Overseas Development Institute (ODI), with a focus on implementing trade policies that will facilitate smoother trade across the continent.
The UK government believes that the successful implementation of the AfCFTA will eliminate barriers to market access, creating a single continental market that will benefit UK businesses by making it easier and more profitable to export goods and services to all 54 African states.
In her statement, Vicky Ford, UK Minister for Africa, emphasized that the funding aims to foster long-term partnerships between African nations and contribute to making the continent more prosperous and environmentally sustainable.
The announcement of this grant comes as Wamkele Mene, Secretary-General of the AfCFTA, is on a mission to London "to discuss how the United Kingdom can extend its role as a strategic partner to the zone."
Two weeks prior, the Enhanced Integrated Framework (EIF), the United Nations Economic Commission for Africa (UNECA), and the International Islamic Trade Finance Corporation (ITFC) launched a programme to assist several African countries, including Côte d'Ivoire, Guinea, and Senegal, in operationalising the AfCFTA. With over 40 of the continent’s 54 states having already deposited their instruments of ratification, the trading bloc is rapidly gaining momentum.
Once fully operational, the AfCFTA will encompass a market of 1.3 billion people with a combined GDP of $3.4 trillion. The agreement is expected to drive economic growth, reduce poverty, and create jobs across the continent.
In addition to this, the British Investment International (BII) group, in collaboration with other G7 development finance institutions, has announced an investment of at least $80 billion in the African private sector over the next five years.
Credit: AgenceEcofin - Jean-Marc Gogbeu