East Africa Trades With African Peers More Than EU, US & Asia
A Big Gain for Intra-African Trade and for Africa
East Africa has taken a leading role in increasing intra-African trade. Data by the East African Community Secretariat shows that in the last quarter of 2023, the seven East African Community countries increased trade with the rest of Africa by $584.6 million.
In contrast, EAC trade with Europe dropped by 14%, and US-EAC trade recorded a 19% decline. The EAC Secretariat observed the same trend with the EAC-Asia trade.
This means the African Continental Free Trade Agreement (AfCFTA) message is slowly but surely seeping through. Business people in the region are now more willing to do business within Africa than outside Africa.
Such a pivot sets the stage for Africa to start experiencing the benefits of the AfCFTA. Remember, according to data, the AfCFTA has the potential to:
Lift 100 million Africans out of poverty by 2035
Boost incomes by up to 10%
Boost contribution to African GDP by 450 billion.
Put Africa on a path to self-reliance.
Remember what the President of South Africa said during the 2018 African Union Summit on the African Continental Free Trade Area?
This is the moment for the African continent.
A free trade area for Africa is going to be like a flood. A flood that is going to lift all the boats. It is not about South Africa. It is more about all of us. All countries of Africa participating - big and small.
This is an opportunity that is going to yield benefits for small countries as well as big ones. It is going to create a level playing field for small and big companies to do meaningful business.
Cyril Ramaphosa, President of South Africa
The flood has started, and nothing has ever looked more beautiful.
Thank you for reading Africa: Not an Afterthought. We lead the conversation on how Africa can leverage technology, trade (AfCFTA), regional integration, and PanAfricanism to build a continent that is not an Afterthought.
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Collaborating with others who are also interested in economic relations rather than military or colonial relations could create a trend that could elevate Afrika into the next massive growth zone of the globe. Sending donations for babies living in straw huts for the last 60 years is not the approach that will work. Building roads, rail lines, ports, airports, etc. is probably a better approach towards economic independence.