The African Continental Free Trade Area (AfCFTA) is approaching near-universal adoption, with 49 of the 54 African Union member states having ratified the agreement as of July 2025. This milestone marks a significant step towards establishing a single continental market designed to enhance intra-African trade and reduce dependence on external economies.
According to the 2026 African Trade Report by Afreximbank, the progress reflects a growing commitment among African nations to deepen regional trade ties amid global trade uncertainties and protectionist trends.
Current Status and Challenges
- Eritrea remains the sole AU member yet to sign the pact, while Benin, Libya, Somalia, South Sudan, and Sudan have signed but not completed ratification.
- Implementation has advanced beyond ratification, with countries engaging in tariff negotiations, trade facilitation, and market access arrangements.
- Of 49 provisional tariff concession schedules submitted, 48 have been adopted, although only 17 countries have provided full tariff schedules spanning all categories, indicating uneven tariff liberalisation.
- Negotiations on rules of origin have progressed to cover approximately 92.43% of tariff lines, with outstanding issues mainly in sensitive sectors such as textiles and automotive industries, crucial for manufacturing hubs like Egypt, Morocco, and South Africa.
National and Regional Progress
- Twenty-four countries, including Kenya, Ghana, Egypt, Rwanda, and Côte d’Ivoire, have domesticated AfCFTA provisions by aligning national trade policies to support the agreement.
- The AfCFTA Guided Trade Initiative has expanded to over 39 countries, facilitating trade in processed foods, tea, coffee, and manufactured goods, signalling the growth of regional value chains.
- Commitments in services sectors—finance, tourism, transport, communication, and business services—have advanced, with active participation from Egypt, Kenya, Mauritius, and South Africa.
Way Forward
Afreximbank highlights challenges such as incomplete tariff schedules, unresolved rules of origin, and capacity constraints that could hinder full implementation. It calls for enhanced coordination among the AfCFTA Secretariat, member states, and regional economic communities to ensure the trade pact fulfills its potential in expanding markets and strengthening Africa’s economic resilience.