A World Bank report said that the African Continental Free Trade Area agreement could bring significant economic and social gains to countries, in terms of increasing foreign direct investment, accelerating economic growth and creating jobs.
The report, called “Making the most of the African Continental Free Trade Area” stated that Morocco’s foreign direct investment towards African countries would grow if the trade agreement is fully implemented, with expectations it would harmonize investment by about 16.6 percent, which is the highest growth rate after Nigeria with an expected growth of 26 percent.
Foreign direct investment flowing from Africa to Morocco is expected to grow by about 14.2 percent by 2035, according to the report.
The trade agreement would increase incomes on the continent by about 9 percent to $571 billion, and create nearly 18 million new jobs by 2035; which would help about 50 million people leave extreme poverty.
The main findings of the report stated that the free trade area has the potential to encourage foreign direct investment that Africa needs to diversify into new industries such as agro-industry and services, and reduce the region’s vulnerabilities in the face of boom and bust cycles for primary commodities.
The World Bank experts noted that strengthening integration beyond trade and trade facilitation measures that ensure policy coordination on investment, competition, e-commerce, and intellectual property rights will contribute to enhancing market efficiency and competitiveness, reducing risks related to the regulatory environment, and attracting more foreign direct investment.
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