The combined states of the
African Union (AU) constitute the world's
11th largest economy with a
nominal gross domestic product (GDP) of
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
2263 billion. By measuring GDP by
purchasing power parity (PPP), the African Union's economy totals US$1.515 trillion, ranking it
11th
11 (eleven) is the natural number following 10 and preceding 12. It is the first repdigit. In English, it is the smallest positive integer whose name has three syllables.
Name
"Eleven" derives from the Old English ', which is first atteste ...
after
Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
. At the same time, they have a combined total debt of US$200 billion.
The AU has only 2% of the world's international trade. But because over 90% of international trade consists of currency futures, Africa's 2% actually makes up the bulk of real commodity traded worldwide to include about 70% of the world's strategic minerals, including
gold
Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile me ...
and
aluminium
Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. I ...
. Africa is also a large market for
European,
American and
Chinese
Chinese can refer to:
* Something related to China
* Chinese people, people of Chinese nationality, citizenship, and/or ethnicity
**''Zhonghua minzu'', the supra-ethnic concept of the Chinese nation
** List of ethnic groups in China, people of ...
industry.
The AU future confederation's goals include the creation of a
free trade area
A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...
, a
customs union
A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a)
Customs unions are established through trade pacts where the participant countries set up ...
, a
single market, a
central bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central b ...
, and a
common currency, thereby establishing
economic and monetary union
An economic and monetary union (EMU) is a type of trade bloc that features a combination of a common market, customs union, and monetary union. Established via a trade pact, an EMU constitutes the sixth of seven stages in the process of economic ...
. The current plan is to establish an
African Economic Community
The African Economic Community (AEC) is an organization of African Union states establishing grounds for mutual economic development among the majority of African states. The stated goals of the organization include the creation of free trade ...
with a single currency (
afro
The afro is a hair type created by natural growth of kinky hair, or specifically styled with chemical curling products by individuals with naturally curly or straight hair.Garland, Phyl"Is The Afro On Its Way Out?" ''Ebony'', February 1973. ...
) by 2030*.*
References
{{African Union