Trade News 3 min read

Latest Update on African Continental Free Trade Agreement (AfCFTA)

The African Continental Free Trade Area (AfCFTA) has made substantial progress in advancing trade and economic integration across the continent. The agreement officially entered into force on 30 May 2019, initially covering the 24 countries that had completed ratification. By June 2023, an impressive 87.03% of all signatory nations had formally deposited their instruments of ratification, demonstrating broad commitment to the AfCFTA framework.

Under the African Continental Free Trade Area (AfCFTA) Protocol on Trade in Goods, African Union Member States have committed to liberalise at least 90% of tariff lines on intra-African trade. This framework was agreed as part of the AfCFTA’s operational instruments and is central to creating a single continental market for goods.

Core Tariff Liberalisation Modalities

  • 90 percent of tariff lines are designated as non-sensitive and are to be fully liberalised. For non-Least Developed Countries (non-LDCs) this is to be achieved over five years from the start of AfCFTA trading, and for Least Developed Countries (LDCs) over ten years.
  • Of the remaining 10 percent of tariff lines, up to 7 percent may be classified as sensitive goods that can be liberalised over an extended period (up to 10 years for non-LDCs and 13 years for LDCs).
  • A final 3 percent of tariff lines can be excluded from liberalisation, although this exclusion is subject to periodic review (typically every five years).

These commitments are typically expressed in each Member State’s Schedule of Tariff Concessions submitted to the AfCFTA Secretariat, which tracks and verifies progress.

Rules of Origin and Remaining Negotiations

Preferential tariffs under AfCFTA only apply to goods that meet the Rules of Origin criteria, ensuring that the product was substantially produced or transformed within Africa. Rules of Origin for many sectors have already been agreed, with more than 90 percent coverage completed, but key sectors such as textiles, clothing, and automotive products are still under negotiation. Finalisation of these sector-specific Rules of Origin is expected as part of the remaining implementation work by February 2026.

Final Implementation Outlook

The overarching AfCFTA implementation timetable foresees the full phase-down of the 90 percent tariff category for non-sensitive goods and the progressive liberalisation of sensitive products over the specified periods, with ongoing work to finalise outstanding tariff offers and detailed Rules of Origin. The aim is to complete remaining negotiations and harmonise implementation by early 2026, setting the stage for deeper integration and expanded preferential trade across the continent within the established AfCFTA framework.

Official Source:
AfCFTA e‑Tariff Book: online repository of tariff concession schedules submitted by Member States: https://etariff.au-afcfta.org