bilaterals.org logo
bilaterals.org logo

AfCFTA

The African Continental Free Trade Area (AfCFTA) is a trade agreement that aims to create a vast free trade area for over 1.3 billion people with a combined GDP of over US$ 3.4 trillion.

The idea of creating an Africa-wide free trade area emerged at the 2012 African Union (AU) summit in Addis Ababa. Negotiations began in 2015 and the deal was signed by 44 of the 55 AU member states in March 2018, during the AU summit in Kigali. While the agreement has been operational since May 2019, some of its trade rules have only been implemented since October 2022 and between just seven states.

The AfCFTA aims to liberalize 97% of products, 90% of non-sensitive products followed by 7% of sensitive products. Phase 1 of the negotiation process has focused on trade in goods and services. Phase 2 includes competition policy, intellectual property and investment. Phase 3 incorporates e-commerce protocol. Key substantive issues are still to be completed, including some rules of origin, tariff concessions and specific services sector commitments.

The negotiating process has lacked transparency, with information available only through leaked texts. Social movements, including trade unions, have complained that they have tried in vain to engage with the AfCFTA secretariat.

While the proponents of the deal have claimed the AfCFTA will foster development in Africa and help African businesses, the deal has attracted criticism and opposition as well.

At first, large economies such as South Africa and Nigeria refused to endorse the agreement. Nigerian business groups, manufacturers, traders, farmers, small and medium enterprises expressed concerns that Africa could become a dumping ground of cheap products coming from abroad, which could wreak havoc on the ongoing industrialisation process. However, Nigeria joined at the 11th hour in July 2019, when the deal entered its operational phase, while South Africa had signed a year earlier. Eritrea is the only AU state that has refused to sign.

The AfCFTA is built on the dogma of free-market capitalism. It pushes a model of “development” hinged on increased trade and investment under the guise of pan-Africanism. However, it is “more of the same” trade rules that have been operational under the World Trade Organisation and bilateral agreements. It has been supported by major economic players such as the EU, the US, the African Development Bank, the United Nations Conference on Trade and Development, and the World Bank. Ultimately, it will likely benefit only African elites and transnational capital at the expense of local communities and small-scale traders who have historically traded informally in Africa, the majority of whom are women.

Some foreign powers have already seen opportunities arising from the AfCFTA. China is planning to capitalise on it to connect African and Chinese markets to promote the free movement of goods, persons, capital and technologies. India has signed a trade deal with Mauritius, which would provide a foothold into Africa. Turkish investors also see possibilities for development within the whole continent, while the EU might consider a mega trade deal. The US is speculated to sign a trade deal with the AfCFTA when the African Growth and Opportunity Act expires in 2025. The two parties have already signed a memorandum of understanding to promote trade and investment at the 2022 US-Africa Business Forum.

The full text of the AfCFTA is available here: https://www.bilaterals.org/?afcfta-consolidated-text-march

The following protocols are available here:
• Competition policy: https://www.bilaterals.org/?afcfta-protocol-on-competition
• Intellectual property rights: https://www.bilaterals.org/?afcfta-protocol-of-on-intellectual
• Investment: https://www.bilaterals.org/?afcfta-protocol-on-investment-48215
• Digital trade: https://www.bilaterals.org/?afcfta-digital-trade-protocol-49908
• Women and youth in trade: https://www.bilaterals.org/?afcfta-women-and-youth-in-trade

Last update: October 2023
photo: Paul Kagame/CC BY-NC-ND 2.0


Algeria joins Guided Trade Initiative to boost pan-Africa trade
Algeria’s Minister of Trade and Export Promotion Tayeb Zitouni declared on Saturday his country’s accession to the guided trade initiative as part of its effective implementation of the African Continental Free Trade Area (AfCFTA) agreement.
Somalia embraces the African Continental Free Trade Area (AfCFTA), validates its national strategy
The Ministry of Commerce and Industry of Somalia embraces AFCFTA in a meeting convened in collaboration with the Economic Commission for Africa (ECA), of its African Continental Free Trade Area national implementation strategy.
30 countries to begin trading under AfCFTA next year - Senior Advisor
Thirty countries in Africa will begin trading under the African Continental Free Trade Area (AfCFTA) next year as part of measures to implement the Af­CFTA agreement, senior advisor to the Secretary-General of the AfCFTA, Peter Joy Serwornoo, has stated.
Comoros, Tanzania and Uganda gear up for African Continental Free Trade Area (AfCFTA) implementation with Economic Commission for Africa’s support
A series of trainings were organized by the Economic Commission for Africa (ECA) in collaboration with the governments of Comoros, Tanzania, and Uganda to strengthen the capacity of public and private sector stakeholders to implement the African Continental Free Trade Area (AfCFTA) Agreement effectively.
46 AfCFTA members sign cooperation protocols to support e-commerce in Africa: Afreximbank
Emily Mburu-Ndoria, Director of Trade in Services, Investment, IPR, and Digital Trade at the African Continental Free Trade Agreement (AfCFTA), announced that several cooperation protocols have been signed to support and finance e-commerce in Africa.
Africa-Türkiye link to boost trade
THE Fourth Africa-Türkiye Economic and Business Forum (TABEF) has called for augmentation of seamless operation of the African Continental Free Trade Area (AfCFTA) to guarantee and promote increased intra-African trade.
Nigeria may miss October trading date for AfCFTA
From all indications, Nigeria may likely fail in its bid to commence trading in the African Continental Free Trade Area (AfCFTA), under the Guided Trade Initiative (GTI).
AfCFTA: More free trade? For whose benefit?
So what does this trade deal mean for ordinary Africans in a time of deep climate, economic and food crises?
United States and Africa: increased engagement regarding trade creating opportunities in the African free trade area
A memorandum of understanding (MoU) was signed in December 2022, between the United States (US) trade representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC.
AfCFTA will unlock opportunities for BRICS member countries
In order for businesses to fully take advantage of the opportunities provided by South Africa being part of BRICS and Africa, several infrastructure challenges have to be overcome, which the African Continental Free Trade Agreement (AfCFTA) could help solve.