The African Continental Free Trade Area (AfCFTA) is one of the largest trading blocs in the world. The agreement establishing the AfCFTA has been signed by 54 out of the 55 member states of the African Union (AU), and ratified by at least 30 of them with 28 having deposited their instrument of ratification as of the date of this writing.
The AfCFTA’s initial objective is to foster intra-African trade by improving market access through the phasing out of tariffs, removal of trade barriers, harmonization of customs laws and practices, and enhancing cooperation and capability building. The AU is aiming for a gradual liberalization that would eventually pave the way for a customs union and regional integration fostering the free movement of people and capital. For large businesses that are already established in Africa or looking to enter the market, the AfCFTA provides a tremendous opportunity for optimizing their operational structure.
Read the full alert within the North America Tax and News Development Newsletter.