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When you ask Tony Elumelu if Africa will benefit from free trade, the Nigerian entrepreneur and philanthropist will not have to think long.
"If we look at other parts of the world, intraregional trade has helped a lot.
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For us to grow in Africa, we have to accept that, "he told DW at the World Economic Forum in Davos, adding:" We need to expand and expand the market. We must also integrate Africa through trade. "
He might not have to wait much longer for this to happen.
Last year, 49 African countries signed the Continental Free Trade Area (CFTA) agreement, supposed to remove tariffs on most goods and other trade barriers.
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The agreement will come into force when 22 countries have ratified it. With only seven more to do, it may only be a matter of weeks.
Thus, while others are re-erecting trade barriers, the continent's leaders are getting closer and closer to creating the largest free trade area since the creation of the World Trade Organization.
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This would create a market with a combined gross domestic product (GDP) of about $ 3 trillion and, according to the African Union (AU), would boost intra-African trade by 52%.
As firms are given the opportunity to enter new markets, unemployment should decline and economic output increase.
And the long-term effects could be even more important.
Create value, attract investors
"The countries that trade commodities are those who are poor.
Those who actually sell value-added products are the ones who are rich, "said Akinwumi Adesina, president of the African Development Bank.
But as African economies can cooperate more closely, he hopes companies will create more sophisticated value chains to produce higher quality products.
In addition, he sees the CFTA as a great opportunity to attract investors.
"Africa is open to business, opportunities are there," he said, adding, "When people look at Africa, think about the people, think about the middle clbad, think about huge opportunities to invest beyond borders ".
The investments would come at a crucial time when it is estimated that Africa lacks up to 100 billion US dollars (88 billion euros) for infrastructure projects alone.
Make it work for the 99%
However, while the economic future looks bright, it is clear that governments will face challenges.
Oxfam International's director, Winifred Byanyima, warned the leaders of what can drive unbridled globalization.
"We have richer countries, richer companies, richer people taking advantage of trade liberalization and many more left behind," she said. . The most important measure is the creation of quality jobs for our young people and for women. "
A new era – also for Nigeria?
Despite these caveats, the euphoria of the CFTA is high.
Before Africa is the beginning of a new economic era; and some see it as just a beginning.
Bernard Gautier of the French investment company Wendel, for example, has already called for further integration by means of common currencies.
And Tony Elumelu recommends not to let the goods circulate freely.
"We must have a common pbadport or at least simplify entry at the border so that people can move freely within Africa.
People who move freely can trade – and not otherwise, "he said – Tony Elumelu Foundation
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