January 23, 2023 at 4:14 AM #9940SUCULTUREAdmin,
AfCFTA: A New Era
for Global Business
and Investment in
AFRICA – New Report
What does this mean for Cross Border deals in relation to 21st Century Africa?
The World Economic Forum (WEF) has established a group called the Forum Friends of the Africa Continental Free Trade Area (AfCFTA) to mobilize global business to support the implementation of the AfCFTA through public-private collaborations.
At the WEF‘s annual meeting in 2023, a report will be presented that consolidates the contributions and findings of this forum, outlining how global businesses and investors can successfully invest and achieve high returns in Africa by developing domestic, regional, and continental value chains and accelerating industrialization.
The report will also review various operational tools and strategies that can support the implementation of the AfCFTA, such as the Rules of Origin Manual and E-Tariff, the AfCFTA Adjustment Facility Fund, the AfCFTA Guided Trade Initiative, the Pan-African Payment and Settlement System, as well as the AfCFTA Private Engagement Strategy.
Although The World Economic Forum (WEF’s) interest in the AfCFTA may increase trade opportunities for businesses operating in Africa; including improved access to new markets and customers for African businesses, however, it has been argued that the potential downsides to the WEF’s interest in the AfCFTA may include:
- Some African countries not able to compete with more developed economies within the AfCFTA/WEF agreement.
- The AfCFTA could lead to increased competition for domestic firms, potentially leading to job losses and other economic challenges.
- There is the risk of large companies taking advantage of the free trade area to exploit resources and exploit workers in African countries
- Some African countries may struggle to implement the necessary economic and structural reforms to fully participate in the AfCFTA
The World Economic Forum Annual Meeting held between 16–20 January 2023.
:Full report in the above image.
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