Potential Impacts of the African Continental Free Trade Area (AfCFTA) On Selected OIC Countries: Case of Côte d’Ivoire, Egypt, Guinea, Mozambique, Tunisia and Uganda Date : 12 July 2021
SESRIC and the International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, prepared a technical report investigating the potential impacts of the African Continental Free Trade Area (AfCFTA) on selected OIC countries, namely Côte d’Ivoire, Egypt, Guinea, Mozambique, Tunisia and Uganda. The study employs the computable general equilibrium model developed by the Global Trade Analysis Project (GTAP) in order to estimate the potential long-term effects of the agreement on these countries. The report accordingly assess output, trade and welfare effects focusing mainly on these six countries and provide some policy directions towards better utilizing the Agreement based on the projected outcomes.
The AfCFTA, which became operational on 1 January 2021, is a major step towards boosting regional trade and economic integration among the African countries. It is expected to facilitate, harmonize and better coordinate trade regimes and eliminate challenges related to overlapping trade agreements across the continent. The expected gains are not to be limited to international trade only. The agreement would support greater economic integration, foster competitiveness of the domestic industries, facilitate better allocation of resources and help to attract greater foreign direct investments.
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