Dubai expecting higher trade volume with Africa once AfCFTA starts

Dubai anticipates a higher volume of trade with Africa over the next five years due to the African Continental Free Trade Area (AfCFTA), according to the Dubai Chamber of Commerce and Industry.

DCCI said in a statement on August 17 that the emirate’s trade with Africa could grow an annual 10% over the next five years once the AfCFTA starts in January.

Dubai’s trade with Africa recorded a compound annual growth rate of 11% over the last five years, according to DCCI. During this period, imports from the continent grew by 14%, exports rose by 13% and re-exports by 6%.

Bilateral non-oil trade reached almost 1 trillion dirhams ($272 billion) during 2011 to 2019.

DCCI sees new business prospects across the continent with key sectors being logistics, cold storage and warehousing, manufacturing, agribusiness, infrastructure, healthcare and pharmaceuticals, and technology.

The AfCFTA is a free trade area for the African continent that comprises 55 countries. It requires members to progressively remove tariffs on at least 97% of tariff lines that account for 90% of intra-Africa imports. Average tariffs are currently 6.1%, which are currently higher for businesses exporting within Africa than when they export to countries outside the continent. 

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