Since the African Continental Free Trade Area Agreement came into effect on May 30, 2019, 52 AU member states have signed the agreement. Tanzanian Deputy Minister of Industry and Trade Kigahe stated on August 14 that the Tanzanian Cabinet meeting had reviewed and approved the African Continental Free Trade Area agreement, and the Tanzanian government plans to submit the agreement to the new parliament to be held on August 31 for review and approval.

According to the analysis of the report issued by the International Monetary Fund in April, through the gradual abolition of 90% of commodity tariffs in the free trade zone, intra-African trade is expected to increase by US$16 billion, with the largest increase in trade in minerals, manufacturing, and agriculture. Analysts believe that the entry into force of the African Continental Free Trade Area Agreement means that China’s economic and trade space in Africa will be broader, and a unified market will provide more space and convenience for Chinese companies to enter Africa. In the future, China’s participation in African construction will be Not only limited to infrastructure, but also in-depth participation in the industrial chain, agriculture and agribusiness, financial services and other fields. Chinese enterprises will usher in new opportunities for investment in Africa.

The passage of the free trade zone agreement will enable Tanzania to enter a more open market economy environment. According to the forecast of the United Nations Economic Commission for Africa, Tanzania’s accession to the African Continental Free Trade Area will promote economic growth by 4%, and exports to the African continent will increase by 23% to 32%. Affected by tariff cuts, the Tanzanian government’s tax revenue will fall by 1.3%, but from In the long run, Tanzania’s gains will be much higher than the tax losses. The Tanzanian Agriculture Chamber of Commerce and Industry believes that joining the African Continental Free Trade Zone will help Tanzanian private enterprises expand their business scale and help Tanzania attract foreign investment; on the other hand, due to the opening of the market, Tanzanian private enterprises will face greater market competition pressure and need to do so in advance. Be prepared to deal with it. Editor/Xu Shengpeng