A united African continent working towards common goals would be a major force on the global economic stage. To this end, nations in the region have been working towards an ambitious plan to create the world’s largest trade area. The Gambia recently became the latest country to ratify the African Continental Free Trade Area (AfCFTA), helping the agreement reach critical mass to move forward. Today’s graphic helps put the region – and the status of AfCFTA – into perspective. One key to unlocking the region’s economic potential is making it easier for Africa’s 55 countries to trade with one another. Currently, Africa is a patchwork of regulations and tariffs, and trade between countries has suffered as a result. For example, only 10% of Nigeria’s annual trade activity is with other African countries. This is a surprising given the country’s dominant economic standing and location firmly in the center of the continent. As a whole, Africa’s intra-continental trade level hovers at just around 20%, while nations in Europe and Asia are at 69% and 59%, respectively. Clearly, there is a lot of room for growth. AfCFTA is the biggest free trade agreement since the establishment of the World Trade Organization. The objective of the agreement is to create a single continental market for goods and services, with free movement of business people and investments. Last year, 44 African leaders signed an agreement to ratify AfCFTA, with half that number needed to move the agreement forward. Earlier this week, The Gambia was the 22nd country to announce that its government has ratified the agreement, meeting the threshold to officially put the wheels in motion. We have witnessed a historic moment for the African Continent. AfCFTA is now set to become operational within the month, creating a single continental market for goods and services. The good news for the agreement is that many of Africa’s largest economies – including Egypt and South Africa – are already on board. There is, however, one significant holdout. Even though the threshold for pushing AfCFTA forward has been reached, Nigeria’s lack of commitment is still a major blow to the strength and credibility of the agreement. Nigeria’s situation is complicated. The country’s economic prospects are bright, and Lagos is on a trajectory to become the world’s largest city over the next few decades. On the other hand, there is fierce opposition from labor unions, and the country is home to largest concentration of people living in extreme poverty in the world. [AfCFTA is] an extremely dangerous and radioactive neo-liberal policy initiative. While the majority of African nations appear to be on board with the plan to enact AfCFTA, it remains to be seen whether Nigeria comes along for the ride or decides to go it alone. License and Republishing World Economic Forum articles may be republished in accordance with our Terms of Use. Written by Nick Routley, Creative Director & Writer, Visual Capitalist This article is published in collaboration with Visual Capitalist. The views expressed in this article are those of the author alone and not the World Economic Forum.
The Gambia has become the latest nation to ratify the African Continental Free Trade Area ( plc ) , which seeks to create a potential $ 2.3tn investment for goods and services with free movement of imported goods and investments . The Gambia became the 22nd country to sign the agreement , which means the proposal can now move forward . However , Africa 's largest economy , Nigeria , is not on board with the plan , which weakens its economy . The economic forecast for Nigeria is promising , with Lagos poised to become the world 's largest city . However , a large proportion of its population lives in extreme poverty .