African Continental Free Trade Area

The African Continental Free Trade Area (AfCFTA) is a continental free-trade zone established by the African Union to create a single market for goods and services across Africa. The agreement was signed in Kigali, Rwanda, in March 2018 and entered into force in May 2019, with trading under the framework commencing in January 2021. AfCFTA brings together 54 of the 55 African Union member states, covering a combined population of more than 1.3-billion people and a combined gross domestic product exceeding $3.4-trillion. The agreement aims to eliminate tariffs on 90% of goods, reduce barriers to trade in services and address regulatory and customs obstacles that have historically fragmented African markets. AfCFTA is intended to boost intra-African trade, which has historically accounted for a small share of the continent's total trade compared with other regions. The framework supports industrialisation by enabling economies of scale, encouraging regional value chains and reducing dependence on exports of raw materials to markets outside the continent. Implementation faces challenges including infrastructure deficits, differing levels of economic development, complex rules of origin and the need for harmonised standards and digital customs systems. The AfCFTA Secretariat, based in Accra, Ghana, coordinates the rollout and provides technical support to member states. The initiative is regarded as a landmark step in African economic integration and a driver of long-term growth and development.