AFR I LABS
KUBATANA MAGAZINE | OCTOBER 2022
WHAT AfCFTA IS OFFERING AFRICAN INNOVATORS AND ENTREPRENEURS
The African Continental Free Trade Area (AfCFTA) is the largest of many regional integration initiatives by African Governments. It was conceived in 2012 after the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union. Currently, 54 of the 55 African countries have agreed to the establishment of a Continental free trade Area to create a single continental market for goods and services. Some benefits of the AfCFTA to startups and entrepreneurs include but are not limited to the following: Reduced tariffs AfCFTA has the potential to boost intra-Africa trade by 81% by eliminating import duties and reducing non-tariff barriers. A large market with tariff-free access will encourage manufacturers and service providers to increase production, resulting in more jobs
and a lower unemployment rate. A unified market
The positive outlook offered by AfCFTA opens up opportunities across borders for innovative ventures in various sectors such as logistics, payment and digital trade. As Africa emerges as a unified market, we anticipate thousands of startups with solutions that provide value at scale within countries and across borders. An empowered ecosystem Individual governments should take a leading role to build the digital economic policy that will open up and connect economies while creating opportunities for its growing youth population. This should address key challenges that have held back innovation on the continent - improving the business environment for emerging startups while strengthening capacity builders and establishing an innovation fund like Catalytic Africa as a critical investment vehicle today de-risk, catalyze, and pool investment and commitment from local angel investors.
BY FADILAH TCHOUMBA Secretary General of Africa Business Angels Network (ABAN)
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