KIGALI, March 19 (Xinhua) -- The African Continental Free Trade Area (AfCFTA) is not only a tremendous opportunity for business in Africa, but also crucial to economies outside Africa, said a UN official on Monday in Rwanda's capital city Kigali.
The AfCFTA will lay a strong foundation for foreign companies to invest in Africa as there will be huge market for foreign direct investments, Vera Songwe, Under-Secretary-General of UN, told Xinhua on the sidelines of the ongoing AU extraordinary summit on the AfCFTA.
China remains an important trading partner for Africa, Songwe said, adding that she expects China's support to ensure that AfCFTA is implemented.
In the years to come, Africa could benefit from more meaningful exchanges with China in a number of areas, including infrastructure and industrial development, technology transfer and job creation, said the official.
The decision to form the CFTA was adopted in January 2012 during the 18th Ordinary Session of the Assembly of Head of States and Government of the AU.
The AfCFTA is aimed at creating a single continental market for goods and services with free movement of businesses and investments. This, according to the AU, will pave the way for accelerating the establishment of the Continental Customs Union and the African Customs Union.
The AfCFTA will make Africa the largest free trade area created since the formation of the World Trade Organization, according to the AU. The AfCFTA could create an African market of over 1.2 billion people with a GDP of 2.5 trillion U.S. dollars, the pan-African bloc said.
The United Nations Economic Commission for Africa estimates that the AfCFTA has the potential to boost intra-Africa trade by 53 percent by eliminating import duties and non-tariff barriers.
