Importance of Tripartite Free Trade Area agreement to Africa

In a bid to boost economic growth and increase intra-regional trade in Africa, the focus has shifted to the Tripartite Free Trade Area agreement. Despite an average annual growth in exports of 8.5% since 2010, intra-regional trade in Africa still lags behind other parts of the world. The recently concluded African Investment Summit shed light on the importance of ratifying and implementing this agreement which aims to integrate Africa's three major regional economic blocs - COMESA, EAC, and SADC. CNBC Africa's interview with COMESA Secretary General, Sindiso Ngwenya, delved into the significance of this landmark agreement. Ngwenya highlighted the potential benefits of harmonizing existing free trade areas, creating a common set of rules, and establishing a single trade regime to facilitate trade and attract investment. The goal is to streamline processes for the private sector and pave the way for inclusive, resilient, and sustainable economic growth in the region. By creating a single market for goods and services, the agreement aims to not only benefit local businesses but also attract foreign investors looking at the burgeoning African market. With a combined GDP of $1.3 trillion and a population that makes up 59% of the continent, the Tripartite Free Trade Area agreement has the potential to transform the region into a hub for trade and investment. The emergence of regional champions in sectors like banking further signifies the shift towards a more integrated and interconnected African economy. As the continent looks towards the future, the implementation of this agreement can set the stage for increased economic prosperity and collaboration among African nations.