The size of the AfCFTA is important. The agreement will reduce tariffs between member states and cover policies such as trade facilitation and services, as well as regulatory measures such as hygiene standards and technical barriers to trade. Full implementation of the AfCFTA would reshape markets and economies across the region and increase production in the services, manufacturing and natural resources sectors. The political momentum towards Africa-wide free trade has intensified. In March 2018, more than 40 countries signed the African Continental Free Trade Area (AfCFTA) agreement. Once fully implemented, the AfCFTA is expected to cover the 55 African countries whose combined GDP was close to $2.2 trillion. This SDN takes stock of recent developments in trade in sub-Saharan Africa and assesses the potential benefits and costs of the AfCFTA as well as the challenges of its successful implementation. In addition to increasing trade flows for both existing and new products, the AfCFTA has the potential to generate considerable economic benefits for African countries. These benefits include increased revenues from improved efficiency and productivity through improved resource allocation, increased cross-border investment flows and technology transfer. To ensure these benefits, in addition to reducing import duties, African countries also need to reduce other barriers to trade by making their customs procedures more efficient, reducing their major infrastructure gaps and improving their business climate. At the same time, policy measures should be taken to mitigate the differences in the impact of trade liberalization on certain groups, as resources are redistributed in the economy and activities move to sites with relatively lower costs. The African Continental Free Trade Area only entered into force when 22 of the signatory countries ratified the agreement, which happened in April 2019, when The Gambia became the 22nd country to ratify it. [67] [68] By August 2020, there are 54 signatories, of which at least 30 have ratified and 28 have deposited their instruments of ratification.

[69] [70] [71] The three countries that have ratified their ratifications but have not yet deposited are Cameroon, Angola and Somalia[71][72], although Morocco is also documented as ratified. [73] [74] A third question is how to conduct future trade negotiations with third parties. Given the consequences of a possible exit from the African Growth and Opportunity Act (AGOA) in 2025, Kenya has already begun negotiations to establish a free trade agreement with the United States. . . .