The CFTA which was adopted by the 30th African Union Summit is expected to create a single continental market for goods and services with free movement of business persons and investments.
The 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia in January 2012, adopted a decision to establish a Continental Free Trade Area (CFTA).
The negotiations for the CFTA started in 2015 and were being conducted by Ministers in charge of trade from member countries and the processes were spearheaded by Niger President Mahamadou Issoufou .
After being adopted by the Heads of States, Tumukunde announced that the signing will take place in Kigali.
“The extra-ordinary meeting on the signing and launching of the CFTA to be in March in Kigali,” Tumukunde said in a tweet.
Before adopting the CFTA, President Issoufou presented the report about the processes establishing the programme to the Heads of States who are gathered in the summit in Addis Ababa Ethiopia.
According to the AU, the CFTA will bring together 54 African countries with a combined population of more than one billion people and combines gross domestic product of more than USD3.4 trillion.
It will also spur trade between African Countries which stands currently 16% far low than 60% between Africa and Europe and 50% between Africa and Asia.
Also expected is to appoint the secretariat of the CFTA and leaders.
In the summit, Heads of States will also adopt Single African Air Transport Market which is expected to reduce transport cost between African Countries.
It is anticipated that transport cost between African Countries will be cut by 25%.
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