African Continental Free Trade Area
The African Continental Free Trade Area (AfCFTA) is a large trade agreement that aims to open Africa’s markets to each other. Its goal is to create a single, liberalised market for goods and services across the continent, boost investment, and reduce poverty.
What it is and where it came from
- Signed in Kigali, Rwanda, on March 21, 2018 by 44 of the African Union’s 55 member states.
- The agreement came into force on May 30, 2019 after enough nations ratified it, and the operational phase started on January 1, 2021.
- The plan is to gradually remove most tariffs and cut other trade barriers to make trade easier across Africa.
Who is involved
- As of 2024, 54 African Union states had signed the agreement; 48 had deposited their ratification instruments.
- Somalia completed domestic ratification but had not yet deposited its instrument with the AU depository.
- Eritrea had not signed the agreement by 2019.
What the deal does
- Phase I focuses on trade in goods and services, with about 90% of goods set to have tariffs reduced. Countries can exclude up to 3% of goods from liberalisation.
- Phase II covers investment, competition policy, and intellectual property rights.
- Phase III covers e-commerce.
- The agreement aims to create a single continental market, improve movement of capital and labor, develop infrastructure, and move toward a continental customs union.
How it’s organized
- A permanent secretariat in Accra, Ghana coordinates implementation.
- Decisions are made by the Assembly of the African Union, the Council of Ministers for Trade, and various committees that handle rules of origin, non-tariff barriers, dispute resolution, and other issues.
Key benefits and goals
- The main aim is to boost intra-African trade and economic development, reduce poverty, and make Africa more competitive globally.
- In 2022, Africa launched the Pan-African Payment and Settlement System (PAPSS) to allow trade payments in local currencies, making cross-border transactions easier.
Background
- The AfCFTA grows out of decades of work to integrate Africa’s economies, evolving from the Organization of African Unity to the African Union, and building on earlier regional trade efforts.
In short, the AfCFTA is designed to make a big, integrated African market, reduce tariffs, and unlock growth across the continent.
This page was last edited on 2 February 2026, at 15:50 (CET).