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Largest African Free Trade area to become reality
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HISTORIC: African leaders at trade agreement meeting
Historic agreement could herald start of an economic revolution
26 African countries have signed an agreement in Uganda that aims to create Africa’s largest free trade area within the next six months.
The plan aims to merge the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC) and the Southern African Development Community (Sadc) into one regional economic market.
Local reports said the merger would create a free trade area comprising over 527 million people and a combined GDP of $624 billion.
Leaders said they asked a tripartite task force to work on a ‘roadmap’ to implement the merger within six months.
They also said they work towards setting up a single customs union.
But local reports said the merger may have to overcome several hurdles to become a reality including some countries’ multiple memberships to various trade blocs.
Some also fear weaker economies of being flooded by goods from stronger counterparts like South Africa and Egypt.
Uganda's President Yoweri Museveni welcomed the agreement, stating that regional integration is a strategic tool that can ensure the future prosperity of Africa.
He said Africa should also work on other forms of integration.
“Apart from the economic injustice by the developed world, their overwhelming military superiority is a threat to the future of Africa. Why should Africans insure cars but do not insure Africa? Economic integration is not enough,” Museveni added.
Published: 03 November 2008
Issue: 1345
