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IMF URGES REMOVAL OF TRADE BARRIERS IN AFRICA

18th May 2023

By  Anozie Egole

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The International Monetary Fund has said that the removal of trade barriers
among African countries will help lift 50 million people out of poverty.

The IMF said this in its recent report titled, ‘Trade Integration in Africa:
Unleashing the continent’s potential in a changing world.’

IMF, in the report, also said the trade barrier removal would increase median
goods trade between African countries by 53 per cent.

The report added that it would also increase to the rest of the world by 15 per
cent.


Related News
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 * Nigeria, others may lose $10bn to political tensions – IMF

“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.”

The Washington DC based body said successful implementation of the African
Continental Free Trade Agreement could unlock important benefits in the
continent.

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



The report further read in part, “The paper investigates the role of trade
policy and the broader trade-enabling environment in determining the bilateral
goods trade flows and country-level trade in services. It sheds light on how the
implementation of the trade area and supporting policies could boost trade and
income as well as help African countries integrate into regional value chains.”



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