AfCFTA

Overview

The African Continental Free Trade Area (AfCFTA) is a landmark trade agreement adopted by African Union member states to create a single continental market for goods and services. It aims to progressively eliminate tariffs and non-tariff barriers across Africa, making it the largest free trade area in the world by number of participating countries.

Objectives of AfCFTA

The main objectives of AfCFTA are to boost intra-African trade, promote industrialisation, and support sustainable economic development. By integrating African economies, the agreement seeks to enhance competitiveness, encourage value addition, and reduce Africa’s reliance on external markets.

Key Features

AfCFTA provides for the phased elimination of tariffs on most goods, liberalisation of trade in services, and cooperation on investment, intellectual property rights, and competition policy. It includes rules of origin, trade facilitation measures, and a dispute settlement mechanism to ensure effective implementation. Special and differential treatment is provided for least-developed and vulnerable economies.

Relationship with WTO Rules

AfCFTA is consistent with WTO rules on regional trade agreements, particularly GATT Article XXIV and the General Agreement on Trade in Services (GATS). It complements the WTO multilateral trading system by advancing trade liberalisation and economic integration at the continental level.

Significance in African Trade

AfCFTA is expected to significantly increase intra-African trade, support regional value chains, and drive economic transformation across the continent. By creating a unified market, it strengthens Africa’s collective position in global trade and contributes to inclusive growth and development.