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October 31, 2024 | 1 day ago
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Algeria is poised to expand its trade within the African Continental Free Trade Area (AfCFTA), integrating into a market of over 1.3 billion people. Since ratifying the AfCFTA agreement in 2021, Algeria has developed a strategy to take full advantage of this opportunity, aiming to diversify its exports beyond hydrocarbons to include manufactured goods such as cement, agricultural products, household appliances and, eventually, technology and automotive products. Algerian-African trade is expected to reach $4.6 billion by 2023, highlighting this growing commercial momentum.
The AfCFTA promises economic benefits, including the elimination of tariffs on 90% of goods and the development of trans-Saharan infrastructure, such as the Algiers-Lagos Road and a future railway network to Mali. This framework is expected to facilitate a shift to higher value trade, support local start-ups and SMEs, and create jobs, with the African Development Bank predicting up to 14 million new jobs in Africa by 2025. Algeria's membership strengthens its competitive position on the continent, reduces its dependence on European and American markets, and enables it to capitalize on the anticipated economic boom from the AfCFTA, with a combined GDP estimated at $3.4 trillion.
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