The sports category has moved to a new website.

See IMF’s suggestion on how Africa can alleviate poverty for over 50 million people

The International Monetary Fund has upgraded global growth in 2023.Thomson Reuters
  • The International Monetary Fund (IMF) highlights the potential impact of removing trade barriers between African nations, stating that it could lead to a significant reduction in extreme poverty.
  • The IMF report emphasizes the importance of effectively implementing the African Continental Free Trade Agreement (AfCFTA) to harness the advantages of increased trade within Africa. 
  • The report highlights the need for reduced tariffs and improved intra-regional cooperation among regional economic communities (RECs) to enhance trade integration and boost economic growth across the continent.

According to the International Monetary Fund, removing trade restrictions between African nations will assist 50 million people escape poverty.

The IMF made this statement via a recent study titled "Trade Integration in Africa: Unleashing the Continent's Potential in a Changing World."

The elimination of trade barriers, according to the IMF, would boost the average amount of products traded between African nations by 53%. The research also points out that trade will rise by 15% for the remainder of the world.

“It finds that removing trade barriers would increase the median goods trade between African countries by 53 percent and with the rest of the world by 15 percent; raise the median African country’s real per capita GDP by more than 10 percent; and help lift an estimated 30-50 million people out of extreme poverty,” an extract from the report reads.

ADVERTISEMENT

According to the organization, the African Continental Free Trade Agreement's effective implementation might bring about significant advantages for the continent.

“Successful implementation of the African Continental Free Trade Area could unlock important benefits including for jobs and income,” the report adds.

The report further read in part, “Seizing these opportunities will require investment in physical and human capital, a robust macroeconomic and business environment conducive to private sector-led growth, and a modernized social safety net that supports the most vulnerable during the transition to a higher growth trajectory...”

In terms of results, import duties on trade inside Africa average 6 per cent, which is still higher than equivalent tariffs in other areas. Although certain RECs also have significant import duties, this primarily reflects high levies on imports from other RECs.

For instance, while trade within the West African Economic and Monetary Union (WAEMU), the Central African Economic and Monetary Community (CEMAC), and the Southern African Customs Union (SACU) is duty-free, the Arab Maghreb Union (AMU) and the Economic Community of Central African States (ECCAS) have average within-bloc tariff rates of 9% and 11%, respectively.

ADVERTISEMENT

The AfCFTA establishment comes at a time when Africa faces both possibilities and difficulties as a result of the changing global environment. Greater trade integration can help the continent benefit from demographic and technology trends' possibilities while also strengthening its resistance to shocks like climate change and geopolitical fragmentation.

JOIN OUR PULSE COMMUNITY!

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

5 key responsibilities of KRA's military-trained tax assistants

5 key responsibilities of KRA's military-trained tax assistants

Africa’s food insecurity to be non-existent in the next 5 years - AfDB

Africa’s food insecurity to be non-existent in the next 5 years - AfDB

List of African countries and how much of their salaries they spend on iPhones

List of African countries and how much of their salaries they spend on iPhones

Do you know what leads to aircraft fuel dumping in the sky? Here is why

Do you know what leads to aircraft fuel dumping in the sky? Here is why

Binti Said’s mission to protect Kenyans from harmful pesticides in food

Binti Said’s mission to protect Kenyans from harmful pesticides in food

Ukraine plans to fight hunger in Africa despite the dangerous transport routes

Ukraine plans to fight hunger in Africa despite the dangerous transport routes

Top 10 African cities with the least affordable housing

Top 10 African cities with the least affordable housing

AI in agriculture: George Mwangolo’s project dubbed Baobab wins $2,500

AI in agriculture: George Mwangolo’s project dubbed Baobab wins $2,500

Top 10 African Countries with the best digital quality of life in 2023

Top 10 African Countries with the best digital quality of life in 2023

ADVERTISEMENT