Over the last few years, Africa has been facing many headwinds to its stellar growth rate of the last decade. Adding to all these woes is the threat that the United Kingdom votes to leave the European Union, Brexit, this Thursday. Hence, will a Brexit be a Perfect Storm to the Africa Rising story?
The Tripartite Free Trade Area (TFTA) was launched on 10 June 2015 in Egypt when the representatives of 26 governments accepted the tenets of the free trade area. This created the largest free-trade zone in Africa, reaching from Egypt to South Africa (BBC, 2015). This article will investigate the TFTA, its challenges and benefits to Africa, and how it will manifest in the larger global context.
Free trade agreements (FTAs) are negotiated so that countries and businesses can benefit from international economic integration and the subsequent eradication of barriers to trade. FTAs create a bigger market, increase competition, but at the same time reward economies of scale, which in turn requires the efficient use of time and resources. The increased competition can stimulate economic reforms, such as the accelerated adoption of existing technologies and stimulation of the development of new ones (Krist & Hughes, 2012).