AFCTA Potentials and Influence on Africa Gaming and Gambling Industry 2021

The implementation of the African Continental Free Trade Area (AfCFTA) agreement is fundamental to the post-pandemic economic recovery for African countries that have been ravaged by the coronavirus pandemic resulting in businesses feeling the pinch as well as the people, which the World Bank said more than 100 million people could join existing millions into extreme poverty.

The AfCTA agreement is one of Africa’s solutions; it is expected to lift 30 million people out of poverty. The accord will be the largest commercial agreement since the establishment of the World Trade Organization in 1995. These will see 54 African countries allowing free trade and lower tax tariffs for goods to boost intra-African business. The trade bloc will strengthen Africa’s economic development and deepen its industrializations; improvement in digital regulation and infrastructure will be needed to maximize the agreement potential. Hence the Islamic Trade Finance Corporation (ITFC) is working to help Africa countries identify gaps in digital policies needed to re-align to consider growing digitalization. This where the job will be says Hani Salem Sonbol, CEO of the (ITFC).

Digital dependence will be the new norm; without it, the pandemic has shown that we are paralyzed. However, the AFCTA will provide regional and continental markets that African industries need to grow as many countries seek to regionalize, even localize their supply chains. Free trade has envisaged the fulfillment of a long-standing goal of creating a unified continental market. The trade bloc will strengthen Africa’s economic development and deepens internalization once operational. According to the United Nations Economic Commission for Africa, the free trade accord has the potential to increase the value of intra-African trade by more than 52 percent by 2022. The prediction with a broader and more integrated-African market, the AfCTA, can better harness economic diversification opportunities within the region and attract foreign direct investment from developed countries. The deal will unite 1.3 billion people; create 3.4 trillion economic blocs, boost trade within the continent itself, and heat commerce in the region.

What It Means For Gambling Industry

The COVID-19 pandemic represents an unprecedented economic crisis for Africa, especially sub-Saharan Africa; within months of the spread of the virus has jeopardized years of development and decades long-gains against poverty in the region while threatening the lives and livelihoods of millions of people. However, the economic situation is fundamental to the gambling industry, with the economy projected to contract -3 percent growth in sub-Saharan Africa in 2020. These will negatively impact the Africa gambling growth as the economic situation will reduced numbers of vetting participants in the gaming industry. Obviously, the financial crisis will affect bettors betting prowess; considering this, most of the bettors will consolidate to bet with a low amount of money.

The economic burden will have an adverse effect on customers; definitely, bookmakers will also feel the conundrum effect of which several will record low GGR in terms of gambling sales and the gambling value will be low because the amount punters will stake on the bet, and the numbers of the betting participant will drop. Perhaps the conundrum effects of the coronavirus outbreak on business in Africa, the gambling industry is no exception to this effect, even though the economic growth in the region expected to rebound modesty in 2021 to 3.1 percent, but many countries a return to 2019 economic growth levels won’t occur until 2022-24. However, AfCTA could be the deciding moment in fast-tracking Africa’s economic growth in 2021 if everything goes as planned, which is set to launch on January 1, 2021.

As mentioned earlier, it will take 30 million people out of poverty, increase foreign direct investment, boost economic development, fast track digitalization, unite 1.3 billion people, create 3.4 million blocs and of course, improve all sectors and the gambling industry growth in Africa is no exception to this development as the economic situation is fundamental to the future of the gambling industry.

About Post Author

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.