Finally, for trade, growth, and development to be stimulated, African countries should urgently open their markets to expand intra-African trade. The World Trade Organization (WTO) has to ensure that defensive trade remedies should not be the next frontier of protectionism. The countries of Africa heretofore have been divided into regional economic and political groups, and with the sole exception of the South African Customs Union. The frequent global oil crunch other raw products are a wake-up call for a rapid industrialization and diversification for competitiveness in Africa. Because advanced and newly industrialized economies have better technology and know-how, manufacturing industries, access to finance, and market than Africa, they have a greater market proportion in the world trade. The economic effects are dubious: a bloc may well reduce the welfare of its members. Undoubtedly, trade has come with both benefits and daunting challenges to countries involved, especially in African nations, where primary and intermediate merchandise formed a substantial share of exports. Recently, three regional blocs in Africa, namely COMESA (common market for Eastern and Southern Africa), SADC (Southern African Development community) and EAC (. African trade blocs are largely pursued for political reasons. However, the structure and pattern of trade vary significantly by-products and regions. The European Union-South African Trade and Development Cooperation Agreement that came into effect in 2000, has as a progressive Free Trade Agreement (FTA) that has become the cornerstone of the regional trading. However, the continent still accounts for a very low share of international trade. The large number of regional trade blocs in Africa suggests that policy makers on the continent believe that trade blocs present opportunities for promoting. There are 14 major regional economic groupings in Africa, considered the building blocks of the African Economic Community, which is expected to gradually. The Southern African Development Community (SADC) Free Trade Agreement, as of 2012, allows duty-free trade among 12 of the 15 members. African merchandise trade has risen faster than those of the developed and developing economies. 1.68 billion Population of Africa in 2030 (UN) Market fragmentation, Ugandan President Yoweri Museveni points out, is a bottleneck that has long held back growth in African economies. South Africa and Nigeria are the first and second largest exporters from the continent. Under AfCFTA, the United Nations Economic Commission for Africa says intra-African trade could increase by 52 per cent by 2022, as compared to 2010 trade levels. Economic Community of Central African States (ECCAS),ģ.Southern African Development Community (SADC),Ĥ.Economic Community of West African States (ECOWAS)
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