The Tariff Revenue Implications of the African Continental Free Trade Area

Given the potential of the AfCFTA, it is critical that these tariff revenue losses are considered within the context of the different countries involved. This policy brief seeks to analyse the tariff revenue implications of the AfCFTA at a more granular level. It considers not only the tariff revenue implications but also imports VAT implications, the value of which is directly related to customs duties. This is analysed based on the different categories of countries, specifically considering tax-to-GDP ratios and reliance on tariff and import tax revenues.