This reflects the constraints in production, trade and consumption patterns. Hence, the new dawn is expected to stimulate production and trade patterns leading to reduction of poverty among the poorest in the world. The decision by nine countries to establish a FTA is a giant step towards creating a single economic bloc on the continent. This consolidates the process of regional economic integration and co-operation by deepening trade flows and market integration. This leads to higher levels of production, development and prosperity.
Single market improves market access while reducing the cost of production.
Reduction in tariffs, duties and trade barriers is therefore a powerful stimulus to economic growth and development, which then creates opportunities for maximising the use of factors of production. There is evidence to suggest that some degree of de-industrialisation has taken place on many SAPs implementing states. Trade liberalisation and the general economic deregulation have not benefited industrialists and citizens. Trade patterns remain unchanged, and are mostly in favour of the fast dwindling formal sector. With the shrinking economic base, many citizens are joining the informal cross border trade sector, which despite all unfavourable laws, regulations and policies, remains resilient to regional economic integration and co-operation agenda.