Dr Evita Schmieg is associated with SWP`s EU/Europe division. This document was developed as part of a trade and development project, supported by the Federal Ministry of Economic Cooperation and Development, as part of the Sustainable Development Goals. South Africa, Sierra Leone, Namibia, Lesotho and Burundi have since signed afCFTA at the 31st African Union Summit in Nouakchott. [50] Since July 2019, 54 states have signed the agreement. [51] To achieve concrete results, it will also be necessary to enable the private sector to take advantage of the new market opportunities that result from them. This means information about markets and often to improve the competitiveness of the industry. To attract investment, whether local, regional or from third countries, African countries must continue to improve framework conditions and facilitate trade. The G20 Pact with Africa (CwA) and the European Investment Plan for Third Countries (as part of the Africa-Europe Alliance) provide a framework that should be used to support these efforts. There are many good reasons to conclude the AfCFTA. Especially in small African economies such as Namibia, which has a population of about 2.5 million, expanding the market under a free trade area would allow industry to achieve economies of scale.

These are reinforced by the constellation of a growing middle class within a rapidly growing population. According to UN estimates, Africa`s population is expected to double to about 2.6 billion by 2050. Moreover, the concept of „entry into force“ of afCFTA in Europe, where it is understood a little differently, has given rise to misunderstandings. If a European free trade agreement „enters into force,“ tariffs will be immediately reduced and the economic consequences will be directly felt. EU foreign policy, trade, trade policy, development cooperation, economy and finances of a country/region, Regional cooperation and alliances, African Union (AU), European Union, European Union At this summit, Benin and Nigeria signed the agreement, so that Eritrea is the only African state not to be part of this agreement; Since then, Eritrea has applied to join the agreement. Gabon and Equatorial Guinea also tabled their ratifications at the summit. At the time of launch, there were 27 states that had ratified the agreement. [45] [47] [48] [49] What further complicates matters is that the degree of integration varies according to CS. Not all Of Africa`s FREE-EXCHANGE ZONES with fully liberalized domestic trade are not yet all: the Arab Maghreb Union (UMA), for example, is virtually insignificant, while the CDAA has already liberalized 90% of its internal trade. The agreement establishing the African Continental Free Trade Area (AfCFTA) came into force in May 2019.

Ultimately, AfCFTA must create a large African market; What is happening at this stage triggers a series of complex and predictable negotiations that are very long. The outcome of this process will not yet be full free trade in Africa, but it will lead to a reduction in tariffs, with the potential to boost production and trade and boost regional value chains. However, it is still too early to discuss a change in the European Union`s trade policy towards Africa or to make it a topic for the next German Presidency of the Council. Nevertheless, Germany and the European Union should continue to monitor and support the process of creating AfCFTA, an important political process with strong long-term economic potential for Africa.