The African Continental Free Trade Area: Economic and Distributional Effects

The African Continental Free Trade Area (AfCFTA) presents a major opportunity for African countries to bring 30 million people out of extreme poverty and to raise the incomes of 68 million others who live on less than $5.50 per day. With the implementation of AfCFTA, trade facilitation measures that cut red tape and simplify customs procedures would drive $292 billion of the $450 billion in potential income gains. Implementing AfCFTA would help usher in the kinds of deep reforms necessary to enhance long-term growth in African countries.