Nigeria has signed the African free trade zone agreement which aims to increase trade between African countries. This leaves Eritrea as the only African country left out in the trade agreement.
The trade agreement will ensure a cut in tariffs for goods from countries within the trade zones.
It is revealed by AFP news that African countries trade only about 16% of their goods and services among one another, compared to 65% with European countries.
The AU projected that implementing the African Free Trade Area – called AfCFTA – will lead to a 60% boost in intra-African trade by 2022.
It also says that AfCFTA will create the world’s largest free trade area. With Nigeria signed up, AfCFTA’s dream of increasing intra-Africa trade, which currently lags behind the volume of trade the continent does with Europe, is now one step closer.