Cameroon Ratifies the Africa Continental Free Trade Area

Cameroon is set to trade in the African Continental Free Trade Area (AfCFTA) after ratifying the agreement on December 1st, 2020. The trade agreement, which formally started rolling out on January 1st, 2021, will give Cameroon access to over one billion people on the continent, with tariffs being eroded by 90%.

For Cameroonian businessmen, this presents an opportunity to increase exports to their closest neighbors in Central Africa and exports, and then to expand towards the rest of the continent. Cameroon relies heavily on exports outside the continent, so this provides a chance to diversify and seek opportunities in the common market once the trade agreement becomes effective.

However, the biggest winners of this new agreement will most likely be exporters of agricultural produce and raw materials, who are hoping the free movement of people will bring improvements in infrastructure across borders. New road networks to rural areas may also strengthen the ability to reach new markets and help local businesses increase their profit margins.

The AfCFTA agreement may also boost foreign direct investments in agriculture while expanding Cameroon’s manufacturing sector, which has always struggled to receive investments. The movement of capital across borders, providing talent to where it is most needed, and advancements in technology will help Cameroon and the rest of Africa participate in the modern global economy.

As of January 2021, 33 countries have formally ratified the treaty. Compliance and implementation will take time, but things are looking positive for countries striving to attain their goals of a common market. The signatories also plan on making negotiating trade deals as a bloc possible in the near future.

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