President Muhammadu Buhari who is currently in Niger Republic attending African Union Summit has siganed the Africa Free tarde Agreement.
President Buhari signs Agreement establishing African Continental Free Trade Area (AfCFTA) at the Opening of the 12th Extra Ordinary Session of the Assembly of African Union Heads of State and Government in Niamey Niger Republic on 7th July 2019.
The AfCFTA agreement took effect on May 30 after achieving the minimum ratification by 22 countries.
According to Mr Muchanga, the Extra-Ordinary Summit will provide the way forward on when African business people will actually start trading with each other.
“Heads of state and governments will give guidance on when the actual trading will start. It may be within six months or 12 months,” he said.
Intra-Africa trade has historically remained low at 15 per cent comparing unfavourably with Europe (68 per cent), North America (37 per cent), and Latin America (20 per cent), due to trade barriers and poor transport and telecommunication connectivity on the continent.
It is estimated that the average tariffs on intra-African trade are about 6.1 per cent, which is higher than those imposed on exports outside the continent.