Paul Brenton is a leading economist in the World Bank`s Trade and Regional Integration Unit (ETIRI). It focuses on analytical and operational work in the area of trade and regional integration. “This is essential, because services account for about 60% of Africa`s GDP and, for example, in 2014, services accounted for 30% of world trade…. Markets for national services will be open to service providers from other African countries,” Muchanga said. When President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries gained a competitive advantage by providing unilateral duty-free exports for 6,500 African products to the United States. Twenty years after AGOA`s first adoption, we see that it has created long-term sustainable growth by stimulating the private sector and creating jobs in a region where many countries face high unemployment, the challenges of the region. In addition, Clinton has strengthened the regional approach to the trade agreement for both major players such as South Africa and by smaller players such as Lesotho. In many ways, this approach is in line with “trade instead of aid.” AfCFTA offers particular potential for agricultural products. In 2015, African countries spent about $63 billion on food imports,4, mainly from outside the continent. The Court`s modelling projects, according to which AfCFTA will increase intra-African trade in agricultural products by 20-30% by 2040, with the highest growth in sugar, vegetables, fruit, fruit, fruit, beverages and dairy products. to invest in modernizing the agricultural sector through processing and mechanization.

AfCFTA should therefore stimulate demand for food imports into Africa and support a predominantly women-led sector. Forty-four African countries have recently signed a Framework Protocol for the Continental Free Trade Area (AfCFTA) that brings the continent closer to becoming one of the largest free trade zones in the world. Trade relations between the United States and Africa are being reorganized – and if AGOA continues to be disrupted or replaced by bilateral free trade agreements, this could be a blow to a number of economies in the region. But even small countries have benefited enormously. Although the textile and clothing industry was created by Lesotho in the late 1980s, exports to AGOA increased (Chart 1). The industry went from a handful of factories in the 1990s to the largest employer in the private sector (43%) and provided 40,000 jobs that directly and indirectly benefit 13% of Lesotho`s population. Lesotho exports approximately $250 million worth of apparel to U.S. brands such as Levi`s, Walmart and Old Navy. The perimeter of the AfCFTA is important.

The agreement will reduce tariffs between Member States and cover policy areas such as trade facilitation and services, as well as regulatory measures such as hygiene standards and technical barriers to trade. Full implementation of AfCFTA would transform markets and economies across the region and boost production in the services, manufacturing and raw materials sectors.