logo

SA has just joined Africa’s $3 trillion free-trade club

PUBLISHED: Mon, 02 Jul 2018 18:34:45 GMT

Share

South Africa has become the latest country to sign the Africa Continental Free Trade Area (AfCFTA) agreement as it battles with poor economic data, an emerging market selloff and trade wars galvanised by the United States.

Sign Up for Our Newsletter Daily Update

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

South Africa’s President Cyril Ramaphosa signed the AfCFTA agreement during the 31st Ordinary Session of the Assembly of Heads of State and Government taking place in Nouakchott, Islamic Republic of Mauritania.

Talks to start the free trade pact began in 2015 and were finally realised in March. But among the initial holdouts were Africa’s largest economies, Nigeria and South Africa, due to legal and internal issues. Some felt that this would be a stumbling block for AfCFTA. This has changed with South Africa’s signature.

The pact aims at creating a trade bloc, which Bloomberg estimates will have a combined gross domestic product of more than $3 trillion.