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AfCFTA's First Trade Flows Begin, but a Long Road Lies Ahead

AfCFTA's First Trade Flows Begin, but a Long Road Lies Ahead
Monday, 13 October 2025 08:03

Even as several countries announce initial trade under the AfCFTA regime, the core issue of truly implementing the African free trade area is taking center stage. Amid global trade tensions and the redefinition of supply chains, the African market is still struggling to find its rhythm.

Ethiopia announced its first commercial shipments under the African Continental Free Trade Area (AfCFTA) late last week. The cargo, including meat, fruits, and other agricultural products, was destined for Somalia, Kenya, and South Africa. According to Ethiopian authorities, the shipments, sent by road and air, mark the country’s formal entry into preferential intra-African trade, following similar steps by several other member states.

Since the 2022 launch of the AfCFTA’s pilot phase, known as the Guided Trade Initiative (GTI), the contours of an integrated African market have begun to take shape as participating countries test tariff and customs procedures. The GTI was created to pilot key AfCFTA processes, including customs clearance, certificates of origin, and preferential tariffs, ahead of the full rollout.

A May 2024 report by the United Nations Economic Commission for Africa (UNECA) noted that the GTI brings together countries considered ready for preferential trade, based on verification of their administrative, tariff, and customs systems. The initial group included Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia. By early 2024, 13 countries had met the technical conditions for trade under the framework, while over 20 had submitted their tariff offers.

New Protocols, Growing Membership

The African Export-Import Bank (Afreximbank), in its 2025 African Trade Report, added that the GTI had expanded to 38 member states by the end of 2024. Of these, 37 had finalized their tariff schedules and upgraded customs systems, paving the way for the first real trade operations. The expansion brought in major economies such as South Africa and Nigeria and facilitated initial shipments of Kenyan batteries and Rwandan coffee to Ghana under reduced tariffs and simplified customs procedures.

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Progress on the AfCFTA itself has also accelerated. By early 2024, 54 of the 55 African Union member states had signed the agreement, with Eritrea remaining the only non-signatory, and 47 had deposited their instruments of ratification by May 2024. In February, the AfCFTA Secretariat released revised protocols on investment, digital trade, competition, intellectual property, and the inclusion of women and youth. In December, the updated e-Tariff Book, developed with the World Customs Organization, introduced a new module on rules of origin and preferential tariff rates.

Before Ethiopia, Namibia announced its first commercial shipment under the AfCFTA in June, departing from the Port of Walvis Bay. The cargo, consisting of agri-food and manufactured products, was bound for South Africa and Botswana. In July 2025, the trade law firm Tralac reported that Tanzania had exported more than 14,000 tonnes of sisal fiber to 17 African countries under the GTI between May 2023 and December 2024, generating nearly $23 million in revenue.

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A long way ahead…

Despite these tangible developments, data on intra-African trade tell a more nuanced story. According to Afreximbank, intra-African trade rose by 12.4% in 2024 to $220.3 billion, following a 5.9% decline the previous year. The bank attributed the rebound to stronger regional exchanges and the resilience of African trade, without directly linking it to the AfCFTA’s implementation. It nevertheless noted that “this positive trend is expected to continue, supported by the ongoing implementation of the African Continental Free Trade Area, which is establishing itself as one of the pillars of the continent’s trade resilience.”

That optimistic outlook is tempered by persistent challenges. Analysts stress that the AfCFTA’s full implementation still hinges on meeting a range of technical, logistical, and administrative conditions. Non-tariff barriers, slow border procedures, and regulatory disparities continue to restrict trade flows. Physical infrastructure, roads, ports, and power and digital networks remain uneven, limiting the movement of goods and services. Moreover, not all countries have harmonized their tariff schedules or established the systems needed to apply rules of origin. Finally, several states have yet to adopt the Pan-African Payment and Settlement System (PAPSS), designed to facilitate trade in local currencies and reduce dependence on the dollar and euro.

Louis-Nino Kansoun

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