Google and Amazon, have approached the AfCFTA Secretariat for investment in the continent .The Secretary General, Wamkele Mene, has disclosed. According to him, discussions are still early on the necessary regulatory framework that will be used monitor and manage digital trade aspect of AfCFTA.
AfCFTA, which is scheduled to take off in January 2021, will create a single continental market . This means, easy movement of goods, services, business people, investments and an African Customs Union. It is expected to increase the volume of trade within the continent by US 35billion annually by 2022.
Quoting Wamkele Mene, while speaking to the African community member states, “We have an opportunity with the African Continental Free Trade Agreement as we implemented to negotiate a digital trade e-commerce protocol per the agreement that will set the regulatory framework for e-commerce to take place in Africa for digital trade to take place in Africa, and in this regard we have already been approached by Google and Amazon who are interested in investing where of course we establish the right regulatory framework to invest in data storage centers on the African continent.”
The target market for the AfCFTA is expected to reach an estimated 1.7 billion by 2030, up from 1.2 billion as of this writing. From which around 600 million will have increased buying power. In terms of aggregate Gross Domestic Product (GDP), this will range from $2.1 trillion to $3.4 trillion.
For investments and consumer spending, the AfCFTA is expected to attract an estimated $4 trillion.
Look beyond the Chaos, Africa’s ripe for growth.