The 2024 African Trade Report, published by the African Export-Import Bank (Afreximbank), delves into the climate implications of the African Continental Free Trade Area (AfCFTA). The report underscores the significant threats climate change poses to African economies, highlighting that abrupt decarbonisation could erode African GDP by 1% and merchandise exports by 14.6%. The AfCFTA, by promoting intra-African trade, is seen as a potential mitigator of carbon emissions, reducing the need for long-distance shipping of goods.
The report outlines two scenarios to examine the impact of AfCFTA on emissions. Scenario One, which involves a 97% tariff reduction on goods traded within Africa, predicts a slight increase in emissions (0.08%) but substantial economic benefits, including a 33.04% increase in intra-African trade. Scenario Two, maintaining pre-AfCFTA extra-African trade levels, results in higher emissions (0.76%) due to increased long-distance shipping.
Read the full report here: https://media.afreximbank.com/afrexim/African-Trade-Report_2024.pdf
Related:
– Harmonising AfCFTA Standards key to Africa’s Industrial Development
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