Africa’s TFTA Launch Could Reshape Regional Trade and Growth
The Tripartite Free Trade Area (TFTA), set to be fully implemented, presents a strategic route for expanding regional integration in Africa. This move comes as the Common Market for Eastern and Southern Africa (COMESA), comprising 21 nations, seeks to boost intra-regional trade and foster inclusive growth.
COMESA, with a combined GDP of approximately $872 billion USD in 2023, includes countries like Kenya, Egypt, and Madagascar. The upcoming Comesa Summit 2025 underscores the importance of robust collaborations among all stakeholders for balanced development. Currently, intra-Comesa trade stands at a mere 14%, presenting vast opportunities for growth, particularly in manufacturing and agro-processing sectors.
Africa, at a critical juncture, aims to strengthen economic ties and tackle shared challenges. Kenya, for instance, imports only 11% of its goods from Africa, indicating a need to enhance sourcing capacity within the COMESA region. Conversely, Comesa is a significant trading partner for Kenya, accounting for 11% of its exports. Harmonizing trade policies across member trading blocs promises to bolster Kenya's and the region's capacity to trade and industrialize more effectively.
The TFTA's implementation offers a strategic path for COMESA nations to expand regional integration, boost intra-trade, and foster inclusive growth. By harmonizing trade policies and enhancing collaborations, Kenya and the wider COMESA region can unlock their full economic potential.
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