Question

Question 2

The 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia in January 2012, adopted a decision to establish a Continental Free Trade Area by an indicative date of 2017. The Agreement Establishing the African Continental Free Trade Agreement (AfCFTA) entered into force on 30 May 2019 for the 24 countries that had deposited their instruments of ratification.

The AfCFTA will bring together all 55-member states of the African Union covering a market of more than 1.2 billion people, including a growing middle class, and a combined gross domestic product (GDP) of more than US$3.4 trillion. In terms of numbers of participating countries, the AfCFTA will be the world’s largest free trade area since the formation of the World Trade Organization. The main objectives of the AfCFTA are to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Customs Union.

From the above, discuss three (3) advantages that Ghana as a member of AfCFTA may get by signing the agreement and two (2) disadvantages that Ghana may suffer from AfCFTA.

Answer 1

*Answer:

From the above, discuss three (3) advantages that Ghana as a member of AfCFTA may get by signing the agreement and two (2) disadvantages that Ghana may suffer from AfCFTA.

Advantages:

• Ghana is generally substantially more popular in terms of non-tax steps, informal trade in formal diverts and swap administrations and so on in the light of the fact that these are influences that have created a country more than ever. The positive effect of the presence of AFCFTA is natural.
• The growth of intra-African markets makes Ghana more notable because of the concept of goods usually traded in the African region. It should be seen as if Ghana is more likely to share higher-established products in a trade with African countries.
• AFCFTA has led to a similar improvement by all nations including Ghana. All of them will experience an era of industrialisation, move to better paid production facilities in urban areas. If families have extra income from their manufacturing jobs, they can afford to train their children and can make sure they do profitable and skilled work.

Disadvantages:

• Regional mix for Ghana is an unpredictable procedure with a number of variables in past levies. A portion of the worries will entail a longer-term commitment to enforce the condition with powerful mainland markets ( e.g. electricity, road , rail, rational regional private industries, and local businesses). Fundamental bottlenecks were an unbelievable obstacle to the development of intra-African trade.
• Ghana 's economy may face major financial disasters and challenges to community businesses. The arrangements can be drawn up and avoided by a sidelined dispersion of benefits and expenses among the Parts States. In this way, the allocation of benefits and a equal share of spending by part-states, including Ghana, would be improved by appropriate flank steps and adaptability.
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