Twenty-six African countries have launched a framework to create a free trade area by integrating three trade blocs to boost regional trade and investment.
The tripartite area announced in June 2015 will include the East African Community, the Southern African Development Community, and the Common Market for Eastern and Southern Africa. It will boast a combined gross domestic product of more than $1 trillion. Some of Africa’s largest economies, including South Africa and Kenya, are among the 26 nations.
Official negotiations have also begun for the establishment of a free trade area to embrace the entire continent of 54 countries, opening up a market of 1.3 billion people with a combined gross domestic product of more than $2 trillion.
The tripartite, named the African Free Trade Zone, was first envisioned at an economic summit in October 2008. It was conceived to ease access to markets within the zone and end problems due to several of the member countries in the zone belonging to multiple regional groups. It will also strengthen the bloc’s bargaining power when negotiating international deals.
Countries within a free-trade zone agree to reduce or do away with certain trade barriers but remain free to devise their own individual trade policies when dealing with outside countries.
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