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Unlocking Trillions: The Potential of an African Continental Trade Area

Tuesday, February 11, 2020
Unlocking Trillions: The Potential of an African Continental Trade Area
2020 Milken Institute MEA Summit
2020 Milken Institute MEA Summit

Unlocking Trillions: The Potential of an African Continental Trade Area

Tuesday, February 11, 2020
10:30 AM - 11:30 AM
St. Regis Saadiyat Island - Ballroom C2 (Hollow Circle 20/Theater 100)

The Middle East and Africa (MEA) are perceived as a source of natural resources, rather than centers for manufacturing, distribution, and technology. As MEA regions invest in manufacturing, regional strategies and roles in global supply chains must adapt. The African Continental Free Trade Area (AfCFTA) is a step forward, covering a market of 1.2 billion people and a combined GDP of $2.5 trillion: the largest free-trade area since formation of the WTO 70 years ago. African governments could use AfCFTA to boost intra-African trade by 52.3 percent yearly, diversify economies, and rise in global value chains—to the profit of trading partners in the Middle East. AfCFTA could unlock market opportunities for investors, facilitate diversification and economic transformation, and boost Africa's consumer class. AfCFTA's potential impact on international negotiating power and strengthening of continental capital markets is a timely issue relevant to Middle Eastern economies and trade partners.