The African Continental Free Trade Area (AfCFTA) Agreement
The African Continental Free Trade Area (AfCFTA) agreement is an ambitious initiative, that once fully implemented, has the potential to unlock Africa’s potential as a global economic powerhouse and revolutionise economic growth and development across the continent.
Fast Facts
Extensive free trade zone
The AfCFTA is set to create a single, continent-wide market comprising 54 countries and 1.3 billion people, with a combined GDP of US$3.4 trillion.
Broad economic development
According to the World Bank, 50 million people could escape extreme poverty and incomes could rise by 9% by 2035 if AfCFTA’s goals are fully realised.
Tariff-free exports
Over 5 000 products qualify for duty-free access under AGOA
Increased export activity
Led by manufacturing, the World Bank estimates Africa’s global exports could rise by 32% and intra-African exports by 109% by 2035.
What is it
- The African Continental Free Trade Area (AfCFTA) is one of the African Union’s 13 flagship projects within its Agenda 2063.
- The AfCFTA will be the world’s largest free trade area, uniting 54 of Africa’s 55 states and all eight of the continent’s regional economic associations in a partnership that aims to create a single continental market by eliminating trade hurdles and boosting intra-Africa trade.
- It is hoped that this single market for goods and services will increase opportunities for African companies of all sizes by providing them with access to larger markets and increasing the ease of doing cross-border business through the elimination of tariffs on 90% of goods traded within the continent and the reduction of non-tariff trade barriers.
- Accordingly, the United Nations Economic Commission for Africa (UNECA) estimates that effective implementation of the AfCFTA has the potential to increase intra-African trade by up to 34% by 2045.
How we assist
As Africa’s largest bank by assets, present in 20 markets across the sub-Saharan region – Africa is our home, and we are committed to driving her growth.
To this end, in synergy with the goals and ambitions of the African Continental Free Trade Area (AfCFTA) agreement, we recognise our responsibility in providing financial and non-financial support to bolster Trade and build capacity across the continent.
Specifically, this involves building finance and trade solutions necessary to help overcome the tariff and non-tariff barriers in order to realise the continent’s ambitions of creating an effective, single market.
Here’s how we assist:
- Access to Reliable African Trade Data:
Our proprietary Africa Trade Barometer research combines qualitative and quantitative intelligence gathered from 10 sub-Saharan economies to provide Africa’s most comprehensive Trade Index. - Trade Finance Solutions:
Our Trade team provides seamless cross-border payment capabilities along with industry-leading trade finance and documentary trade products that enable you to improve and extend your working capital cycle and expand your business while mitigating risks. - Project and Infrastructure Finance:
Our Corporate and Investment Banking division offers a comprehensive suite of financing solutions for large-scale power and infrastructure projects. - Building Manufacturing Capacity:
Manufacturing will be vital in increasing African trade in the future. Our Commercial Asset Finance offering enables access to secure new or used capital equipment on repayment terms to suit the cash flow cycles of your business.
Meanwhile, our Africa-China Trade Solutions team can assist our African clients in procuring, financing and importing specialist manufacturing equipment and renewable power systems from reputable, accredited Chinese producers. - Value-adding initiatives:
Our Trade Club portal is designed to assist our African Business and Commercial Banking clients in sourcing trusted, pre-vetted local and international trading partners. - Africa-China Trade Solutions:
As the African continent bolsters its trade capabilities, an increase in trade with China in the form of imports or exports is inevitable. Our Africa China Banking Capabilities and Solutions provide an unrivalled competitive advantage to our clients through our formidable partnership with the world’s biggest bank, the Industrial and Commercial Bank of China (ICBC) which enables us to link you to export and import opportunities within the Africa China trade corridor.
Get in touch
For more information on our Trade offering, kindly reach out to your Relationship Manager or Account Executive, or email: [email protected]
-
What is it
-
How we assist
-
Get in touch
- The African Continental Free Trade Area (AfCFTA) is one of the African Union’s 13 flagship projects within its Agenda 2063.
- The AfCFTA will be the world’s largest free trade area, uniting 54 of Africa’s 55 states and all eight of the continent’s regional economic associations in a partnership that aims to create a single continental market by eliminating trade hurdles and boosting intra-Africa trade.
- It is hoped that this single market for goods and services will increase opportunities for African companies of all sizes by providing them with access to larger markets and increasing the ease of doing cross-border business through the elimination of tariffs on 90% of goods traded within the continent and the reduction of non-tariff trade barriers.
- Accordingly, the United Nations Economic Commission for Africa (UNECA) estimates that effective implementation of the AfCFTA has the potential to increase intra-African trade by up to 34% by 2045.
As Africa’s largest bank by assets, present in 20 markets across the sub-Saharan region – Africa is our home, and we are committed to driving her growth.
To this end, in synergy with the goals and ambitions of the African Continental Free Trade Area (AfCFTA) agreement, we recognise our responsibility in providing financial and non-financial support to bolster Trade and build capacity across the continent.
Specifically, this involves building finance and trade solutions necessary to help overcome the tariff and non-tariff barriers in order to realise the continent’s ambitions of creating an effective, single market.
Here’s how we assist:
- Access to Reliable African Trade Data:
Our proprietary Africa Trade Barometer research combines qualitative and quantitative intelligence gathered from 10 sub-Saharan economies to provide Africa’s most comprehensive Trade Index. - Trade Finance Solutions:
Our Trade team provides seamless cross-border payment capabilities along with industry-leading trade finance and documentary trade products that enable you to improve and extend your working capital cycle and expand your business while mitigating risks. - Project and Infrastructure Finance:
Our Corporate and Investment Banking division offers a comprehensive suite of financing solutions for large-scale power and infrastructure projects. - Building Manufacturing Capacity:
Manufacturing will be vital in increasing African trade in the future. Our Commercial Asset Finance offering enables access to secure new or used capital equipment on repayment terms to suit the cash flow cycles of your business.
Meanwhile, our Africa-China Trade Solutions team can assist our African clients in procuring, financing and importing specialist manufacturing equipment and renewable power systems from reputable, accredited Chinese producers. - Value-adding initiatives:
Our Trade Club portal is designed to assist our African Business and Commercial Banking clients in sourcing trusted, pre-vetted local and international trading partners. - Africa-China Trade Solutions:
As the African continent bolsters its trade capabilities, an increase in trade with China in the form of imports or exports is inevitable. Our Africa China Banking Capabilities and Solutions provide an unrivalled competitive advantage to our clients through our formidable partnership with the world’s biggest bank, the Industrial and Commercial Bank of China (ICBC) which enables us to link you to export and import opportunities within the Africa China trade corridor.
For more information on our Trade offering, kindly reach out to your Relationship Manager or Account Executive, or email: [email protected]