ABSTRACT
This chapter assesses the potential impact of the AfCFTA on poverty reduction in Africa. It documents that Africa’s performance in poverty reduction over the past three decades has been unsatisfactory and much lower than the rest of developing regions. The number of people living below the $1.90 international poverty line continues to rise in Africa, due to a slow decline in the poverty rate and a high population growth. Consequently, more than half the total poor in the world currently live in Africa. It estimates that the AfCFTA could reduce by up to 1/3 of the poor in an optimistic scenario and about 10% in a pessimistic scenario. This stems from the capacity of the agreement to generate long-term growth, boost intra-African trade, foster value addition and expansion in the agriculture and manufacturing sectors and enhance market access. The benefits of the AfCFTA will only be effective if governments strive to enhance the productive capacities in the agriculture sector.
