What is AfCFTA? The African Continental Free Trade Area explained

By Mohamed Omer, Chairman & Chief Executive Officer, Mooventory Global

The African Continental Free Trade Area (AfCFTA) is the largest free trade area in the world by number of member countries. It aims to bring together about 1.4 billion people in one market for goods and services, with a combined GDP of roughly US$3.4 trillion, according to the World Bank.

Key facts

Agreement signed: 21 March 2018, Kigali, Rwanda
Entered into force: 30 May 2019
Trading began: 1 January 2021
Signatories: 54 of 55 African Union states (Eritrea has not signed)
Secretariat: Accra, Ghana

How the tariff cuts work

Members commit to removing tariffs on 90% of tariff lines. Most countries phase cuts in over 5 years, and least-developed countries over 10 years. A further 7% of lines are "sensitive products" with longer phase-downs, and up to 3% can be excluded entirely. Each country publishes its own schedule of tariff concessions, so the duty saving depends on the product and the country pair.

Rules of origin: the part traders get wrong

AfCFTA preferences only apply to goods that originate in a member state. Goods made in China, the UAE, Türkiye or India and shipped straight to Africa do not qualify. They can qualify only after enough processing inside a member state. That processing is defined product by product, for example by a change in tariff heading or a minimum share of local value. You will need an AfCFTA certificate of origin from an authorised body.

The Guided Trade Initiative

Launched in October 2022, the Guided Trade Initiative was the first set of real shipments traded under AfCFTA terms. It started with a small group of countries and has expanded since. It is the clearest sign of which corridors already work in practice.

What AfCFTA means for traders sourcing from Asia and the Gulf

Regional hubs: Final assembly or processing in one African country can make goods eligible for duty-free sale in others.
Distribution: Lower intra-African tariffs make it cheaper to stock goods in one hub, such as Kenya, Ghana or Egypt, and serve neighbouring markets.
Watch the gaps: Customs procedures, non-tariff barriers and uneven implementation still add cost. Check the importing country's schedule before you price a deal.

Frequently asked questions

What is AfCFTA?

The African Continental Free Trade Area is an agreement among African Union members to create a single market for goods and services, cutting tariffs on most goods and reducing non-tariff barriers between member states.

How many countries have signed AfCFTA?

54 of the 55 African Union member states have signed the agreement; Eritrea is the only one that has not. Most signatories have also ratified it. Check the AfCFTA Secretariat for the latest ratification count.

When did AfCFTA start?

The agreement entered into force on 30 May 2019, and trading under it officially began on 1 January 2021.

Where is the AfCFTA Secretariat?

In Accra, Ghana.

Do goods from China, the UAE, Türkiye or India get AfCFTA benefits?

No. Preferences apply only to goods that meet AfCFTA rules of origin, meaning they are wholly obtained or sufficiently processed in a member state. Imported goods can qualify only after enough local transformation.

Sources

AfCFTA Secretariat, official site
African Union, Agreement Establishing the AfCFTA, signatory and ratification status
World Bank, The African Continental Free Trade Area (2020)