Economics

Africa May Only See Impact of New Free-Trade Deal After 3 Years

Target for first trade under continent-wide pact is July 1
Tariffs and protocols for services are yet to be agreed on

Shipping containers sit beside railway lines running into Mombasa port, operated by Kenya Ports Authority, in Mombasa.
Photographer: Luis Tato/Bloomberg

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By Prinesha Naidoo and Borges Nhamirre

February 28, 2020 at 9:10 AM UTC

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The real impact of commerce under a Pan-African deal to establish the world’s largest free-trade area will probably only be seen in three years, according an architect of the pact.

While the first trade under the African Continental Free-Trade Area, which could cover a market of 1.2 billion people with a combined gross domestic product of $2.5 trillion is set to start July 1, it will be “very modest,” Carlos Lopes, the former executive secretary of the United Nations Economic Commission for Africa, said in an emailed response to questions.