Although the country is still reluctant to undermine local producers and entrepreneurs, it has much to gain from improving its access to the wider African market. To avoid further incidents of this kind, effective instruments are needed across the continent to effectively manage the transition to trade liberalization. In addition, efforts must be made to ensure a uniform level of tariff compliance in Africa`s regional economic communities. Economic Integration Forecasting Models General Balance Models Trade Agreements Open Trade Agreements Trade Framework Business Models Business Models Trade Negotiations Well-being Preparation under the AfCFTA Agreement, Ambassador Albert Mudenda Muchanga, African Union Trade and Trade Commissioner under the AfCFTA Agreement, will begin on July 1, 2020. But AfCFTA parties still have crucial issues to resolve to create an integrated, active and effective AfCFTA market. The World Bank report, The African Continental Free Trade Area: Economic and Distributional Effects, aims to help policymakers implement policies that can maximize the potential benefits of the agreement while minimizing risks. Creating a continental market requires resolute efforts to reduce all business costs. Governments also need to develop strategies to increase the willingness of their workforce to take advantage of new opportunities. While full implementation of the agreement is expected to take a few more years, AfCFTA could be an important milestone in the continent`s history and could lay the foundations for a fully integrated African economy in the long term, in which people, goods and services can move freely. and marks the continent`s most ambitious integration initiative to date.
Nevertheless, considerable efforts will be required on the part of the signatories to ensure that the benefits of the agreement are fully realized. At present, the level of intra-regional trade is significantly lower than in other regions of the world. Intra-African exports were only 16.6% in 2017, compared with 68% in Europe, 59% in Asia and 55% in North and South America, according to UNCTAD. Infrastructure is another key factor in taking full advantage of the potential benefits of GASTA. Filling Africa`s physical infrastructure gap will require $93 billion in public and private investment per year. (8) Trade liberalization also allows companies to access a large continental market and benefit from economies of scale. In the long run, increased competitive pressure can improve business efficiency. However, market consolidation can occur when small businesses are subject to tougher competition.