The African Continental Free Trade Area: Unlocking Economic Potential

Antti Simola (), Ole Boysen (), Emanuele Ferrari and Victor Nechifor ()
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Antti Simola: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Ole Boysen: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Victor Nechifor: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC143147, JRC Research Reports from Joint Research Centre

Abstract: The African Continental Free Trade Area (AfCFTA) holds significant potential to enhance Africa’s economic prospects by deepening integration and reducing reliance on non-African trading partners. A new analysis, incorporating updated tariff offers and various other developments, indicates positive economic outcomes for Africa, including increases in GDP, household disposable income, investments, and intra-African trade. Reducing non-tariff measures (NTMs) is crucial for realizing substantial benefits, with potential spillover effects to extra-African trade further amplifying gains. The AfCFTA is expected to foster industrialization, with manufacturing output showing the most significant increases among sectors. However, regional disparities in economic benefits and potential challenges such as decreased tariff revenues for some countries exist. Complementary policies, effective NTM reduction, and strategic management of public revenue are essential for equitable and sustainable growth across the continent.

Date: 2025-12
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