Intra-Africa, Trade in Services, AfCFTA
This paper assesses the prospects of AfCFTA – whose implementation commenced in January 2021 – in boosting intra-African trade in services. We use the PPML estimator of the gravity model on bilateral services trade data for total and eight categories of services in 49 African countries spanning from 1995-2019. For our first objective, we assess the determinants of services trade, specifically the degree of complementarity between trade in goods and trade in services. The second objective establishes the role of trade facilitation on trade in services within Africa. We find that goods complement services, particularly total, transport, construction, Other Business services, and personal, cultural, and recreational services. We also find that most “hard” indicators of trade facilitation improve trade in services within Africa compared to “soft” factors whose effect is mixed. Based on these findings, we propose policy recommendations for improving intra-Africa trade in services by adopting and implementing key protocols on trade in goods under the AfCFTA and developing digital, information and communication infrastructure to expand internet coverage, mobile and broadband subscriptions.
How to Cite This Article
Majune, Socrates Kraido; Kaaria, Judy Kiende; and Kihiu, Evelyne Nyathira
"Intra-Africa Trade In Services And The Afcfta,"
Journal of African Trade: Vol. 10:
1, Article 5.