AfCFTA: Key to Africa's Recovery and Prosperity?


Friday, November 13, 2020/ 02:00PM / United Capital Research / Header Image Credit: Pan African Visions


Recently, the Federal Executive Council (FEC) ratified Nigeria's membership of the African Continental Free Trade Agreement (AfCFTA) less than a month to the deadline. The deal which takes effect tentatively on 1 January 2021, was pushed back from July 2020 to allow governments to concentrate on fighting the pandemic. Nigeria's decision to ratify the trade deal is a major win for the ACFTA. Nigeria accounts for c.17% of the continent's GDP. The agreement is set to create the largest trading bloc since the World Trade Organisation (WTO) in 1995. It promises to improve trade and promote intra-regional investment in Africa by removing 90.0% tariffs on goods and services. When fully operational by 2030, AfCFTA is expected to cover a market of 1.2bn people, with a combined GDP of $2.5trn.


Despite the promise of the AfCFTA and the obvious commitment displayed by African nations, historical precedents and an unwillingness to match words with deeds suggest noncommitment and cast a shadow on the optimistic outlook. To name a few, closed land borders as observed in Nigeria and regional tensions between Kenya and Somalia are indications of potential constraints. Additionally, failure to address infrastructure deficits and security challenges are significant threats to the long-term efficacy of the agreement.


For the AfCFTA to achieve its goal of unlocking economic growth and enhancing competitiveness on the continent. There has to be sustained political will to bolster competitiveness through structural reforms and investment in infrastructure and human capital.


Top African Stories

  • Nigeria ratifies membership of AfCFTA . Read more
  • Zambia on Brink of Default With Creditors Set to Reject Relief. Read more
  • How intra-African trade is progressing amid the pandemic. Read more
  • Tiger brands anticipates 30% decline in full year earnings. Read more
  • Nigeria Probes Protesters Under Terror-Financing Law. Read more
  • LAfrican Energy Chamber Expects LNG to Prevent Massive Jobs Destruction in the Short-Term. Read more
  • Ethiopia rallies public support as Tigray conflict worsens. Read more
  • DRC: Insecurity in Goma surges. Read more


Looking Forward


Oct-2020 Inflation Report - November 23rd

Oct-2020 Net Reserves - November 22nd



Oct-2020 M2 Money Supply - November 23th



Oct-2020 Inflation Report - November 30th



Oct-2020 M3 Money Supply - November 19th

Oct-2020 Inflation Report - November 22nd



Nov MPC- November 24th

Oct-2020 M2 Money Supply - November 28th

Oct-2020 Private Sector Credit - November 28th


South Africa

Oct-2020 Inflation Report - November 25th

Oct-2020 Private Sector Credit- November 30th

Oct-2020 Trade Balance - November 30th

Oct-2020 Monthly Budget Balance - November 30th

  Proshare Nigeria Pvt. Ltd.


Visit African Markets in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News 

1.      A Look at Global Governments and COVID-19

2.     Let's Talk African Trade and The US Elections

3.     The Rise of New Industry Stocks Under COVID-19

4.     What to Watch for in China's 5-Year Plan as Economy Shifts to Self-Sufficiency

5.     African Economies: From COVID-19 to Crisis

6.     How Are SSA Economies Preparing for a Post-COVID-19 Environment?

7.     Zambia Closer to Eurobond Default as It Skips Interest Payment

8.     How Are SSA Economies Preparing for a Post-COVID-19 Environment?

9.     Zambia Closer to Eurobond Default as It Skips Interest Payment

10.  Time for an Ambitious Response to COVID-19 from Africa - FBNQuest

11.   Egypt's Debut International Green Bond: An African First

12.  Federal Reserve Begins 2020 Census of Finance Companies and Other Lenders

13.  Off the Cliff - Sub-Saharan African Update

14.  Emerging Market Covenant Quality Reaches All-time Weakest Level Amid Slowing Issuance

15.  Will A Zambian Default Risk Worsen Credit Risk Premium For SSA Issuers?

16.  Nigeria, South Africa and Ghana: Pre-COVID, COVID and Post-COVID

17.  African Banks Hold Government Debt That Exceeds Their Equity

18.  Zambia Requests Suspension of Debt Service Payment to Holders of US Dollar Debt for Six Months

19.  Romania Officially Becomes an Emerging Market

20. Ghana's Economy: Real GDP Dipped By 3.2% YoY in Q2 2020

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News