African countries have signed The Tripartite Free Trade Area (TFTA) that give enhancements for creation of Africa’s largest free-trade zone. The pact was signed in Egypt. It is basically done to ease the movement of goods among 26 member countries which represent more than half the continent’s GDP.
About TFTA Pact:
- TFTA pact combines existing three trade blocs among the African nations and Southern African Development Community (SADC), East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA).
- It will remove trade barriers on almost all the goods.
- It will make goods cheaper.
- It will stimulates $ 1 trillion worth of economic activity across the region of more than 600 million people.
- It will give boost to intra-regional trade by creating a wider market.
- It will increase investment flow and enhance regional infrastructure development.
- The pact will then be officially pass in the upcoming 25th summit of the African Union in South Africa.
- After adopting it will need parliamentary ratification from all member-nations.
- This free-trade zone will cover 26 countries in an area from southernmost tip of African continent i.e. Cape Town (South Africa) to Cairo (Egypt) in the north.
