AfCFTA Trading Begins
AfCFTA Trading Begins refers to January 1, 2021, when trade started under the African Continental Free Trade Area, an agreement signed by 54 of the 55 African Union member states.
What happened and why it matters
The start of AfCFTA trading created the largest free trade area by number of member countries since the WTO, and it is slowly changing sourcing and distribution options within Africa. The agreement was signed in Kigali in March 2018, entered into force in May 2019, and opened for trading on January 1, 2021, with a secretariat in Accra, Ghana. Tariffs on most goods are to be phased out among countries that have ratified and submitted schedules. As with any free trade agreement, benefits depend on rules of origin, so shippers need correct origin documentation to claim reduced duties.