Grand Free Trade Area (AGLC) a new beginning for the African single market

2023-08-30 09:03:30

Africa has been considered for many years one of the poorest continents in the world, despite having immense wealth in its natural resources. However, a group of its member countries recently established a single african marketwhich would be the first step to allow the economic growth of this region.

After seven years of arduous negotiations between twenty-five countries on the continent, they managed to inaugurate what is technically known as the Grand Free Trade Area (AGLC)which arises after the unification of the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC) and the East African Community (EAC).

The continent could be a source of wealth in the future with the new single african market, which opens the doors to foreign investors who wish to do fruitful business between their nations. He single african market It consists of the largest free trade area that extends from Egypt to South Africa, being the largest than the European Union and Nafta, becoming the largest in the world.

A new beginning for the African single market.

For many years, the continent dreamed of this single african market, which is projected to launch the region in a new direction for its development. Since 2000, African growth rates have increased thanks to raw materials, the rise of foreign investors and domestic markets.

These African nations accumulate a gross domestic product of approximately one trillion dollars, which is equivalent to 58 percent of the economic activity of the entire continent, which is a point in favor of the African single market.

In turn, Africa has a volume of transactions ranging between 102 billion dollars, representing barely 10 percent of the trade carried out in the countries that make up the African single market.

This new African trade agreement would also benefit at least 625 million people who live in these nations. On the other hand, the single african market, It is the prelude to the opening in 2017 of the African Continental Free Trade Area (CFTA).

Con a new world of opportunities, African nations will be able to encourage and strengthen diplomatic relations among themselves. He single african marketalso seeks to eliminate the barriers and restrictions that commerce has in the area.

Likewise, Africa aims to make the majority of commercial transactions between the countries of the continent. Also, to reduce customs costs by up to 85 percent, in a period of no more than five years. Another important point of single african market is that it could eliminate the visa requirement for citizens and goods.

Although there is still a long way to go for Africa to be a bright spot in the world, the path has already begun to take shape. Now, the countries that make up the African single market must develop the continent’s infrastructure, create a network of portfolios, and improve the existing delay in transportation, administration of water resourcesenergy, and communications.