ADDIS ABABA, June 5 (Xinhua) -- The UN Economic Commission for Africa (ECA) on Wednesday stressed that the imminent African Continental Free trade Area (AfCFTA) Agreement would have a positive impact on lowering transaction costs and the economies of scale.
"The African Continental Free trade Area Agreement means expanded market access, lower transaction costs and economies of scale," an ECA statement said on Wednesday.
"There are also opportunities to increase access to cheaper raw materials and intermediate inputs and improve conditions for integration in regional and global value chains," an ECA statement read.
The ECA further stressed that the continental free trade pact, which will reduce 90 percent of tariff lines to zero, will provide African countries' "business environment with a much-needed boost."
African business community is also urged to play a "key role" during all phases of the AfCFTA.
"The business community has a key role to play in all phases of the agreement," an ECA statement quoted Ghitu Mundunge, Economic Affairs Officer at the ECA, as saying. "This is important for the continent to maximize the benefits of the agreement."
The ECA has been working with its partners including the African Union, International Trade Centre, the United Nations Conference on Trade and Development, the European Union, and a selection of independent trade experts so as to identify the key elements to be considered in national AfCFTA implementation strategies.
Earlier this week, the AU had disclosed that a post-launch of the AfCFTA implementation plan is under preparation ahead of the AfCFTA's operational phase, scheduled to start in July.
The AU extraordinary summit is scheduled to convene in Niamey, Niger.
The AfCFTA has laid the foundation for what could be the world's largest free trade zone by the number of participating countries, covering more than 1.2 billion people with a combined gross domestic product of 2.5 trillion dollars, according to the AU.
The African free trade accord, once operational, will boost the level of intra-Africa trade by about 52 percent by the year 2020, according to the ECA.
