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What Are the Potential Benefits of African Continental Free Trade Area to the Food and Beverage Sector in Africa?

In: The Palgrave Handbook of Africa’s Economic Sectors

Author

Listed:
  • Isaac Bentum-Ennin

    (University of Cape Coast)

  • Grace Darko Appiah-Kubi

    (University of Cape Coast)

  • Dennis Boahene Osei

    (University of the Witwatersrand)

  • Francis Kwaw Andoh

    (University of Cape Coast)

Abstract

This chapter uses the 2015 input–output Tables for 47 African countries to evaluate the trade capacity of the food and beverage sector to gauge its trade potential in the African Continental Free Trade Area (AfCFTA). It analyzes the real benefits of the sector within the context of environmental and import costs. Furthermore, it conducts simulation exercises to determine the effects of gradual and total removal of tariffs on the sector. The results show that AfCFTA could benefit the food and beverages sector in Africa in terms of reduction in import costs and prices. The sector is efficient and has further capacity to import more, taking into consideration environmental and import costs. Hence it can take advantage of the AfCFTA to boost trade in Africa.

Suggested Citation

  • Isaac Bentum-Ennin & Grace Darko Appiah-Kubi & Dennis Boahene Osei & Francis Kwaw Andoh, 2022. "What Are the Potential Benefits of African Continental Free Trade Area to the Food and Beverage Sector in Africa?," Springer Books, in: Evelyn F. Wamboye & Bichaka Fayissa (ed.), The Palgrave Handbook of Africa’s Economic Sectors, pages 721-743, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75556-0_28
    DOI: 10.1007/978-3-030-75556-0_28
    as

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