“LET’S catch together,” sang the choir to the rhythm of Bob Marley, as a succession of African leaders signed an ambitious, and continent-wide free-trade agreement in Kigali on March 21st. Although all 55 members of the African Union (AU) had been involved in negotiations around the grandly named Continental Free Trade Area (CFTA),not all were alert to sign as one. On the day, 44 put pen to paper. Among the holdouts was Nigeria, or Africa’s largest economy. Paul Kagame,Rwanda’s president and the host of the AU summit, had no time for sceptics. “Some horses decided to drink the water. Others have excuses and they end up dying of thirst.”The logic of the deal is sound. Trade in Africa is still shaped by relationships and infrastructure dating back to the colonial era. Countries mostly sell primary commodities to other continents. Only 18% of their exports are traded within Africa, and where they often face tall tariffs. The CFTA is meant to change that by creating a “single continental market for goods and services”. UNCTAD,a UN agency,...
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Source: economist.com