Benefits of Africa Free Trade Agreement: Prof. Rajen Pillay

Tonight on The Bottom Line we’re looking at a deal that will benefit 55 countries and more than a billion people. It’s the African Continental Free Trade Area Agreement. South Africa has signed and it was officially launched by the African Union in Niger earlier this month. The problem is that African countries down trade that much with each other. About 16% of Africa’s overall trade is amongst Africans – compared to nearly 70% for a block like the European Union. So the Free Trade Area is aimed at bringing down barriers to trade such as import tariffs. The idea is that African companies will sell more and invest more on the continent and everyone could get richer. Professor Rajen Pillay is the CEO of Garuda Capital – a Mergers and Acquisitions firm based in Sandton, Johannesburg.