The African Continental Free Trade Area (AfCFTA) is a landmark initiative aimed at creating a single, liberalized market for goods and services across Africa. The African Continental Free Trade Agreement (AfCFTA) is a landmark trade agreement that aims to create the world’s largest free trade area by connecting 1.2 billion people across 55 African countries.
Key Progress and Highlights:
- The AfCFTA agreement was signed in March 2018 and entered into force in May 2019.
- As of 2025, 54 out of 55 African Union member states have signed the AfCFTA agreement, with Eritrea being the only country that has not yet joined.
- The operational phase of the AfCFTA was launched in July 2019, with trading under the agreement commencing on January 1, 2021.
- The AfCFTA aims to eliminate tariffs on 90% of goods, facilitate the movement of capital and people, and promote investment across the continent.
Ethiopia’s Participation in the AfCFTA
Ethiopia is a signatory to the AfCFTA agreement and is actively participating in the implementation of the trade pact.
Ethiopia’s Stance and Progress:
Ethiopia originally had preferential access to the U.S. market under the African Growth and Opportunity Act (AGOA), but this was suspended in 2022.
Ethiopia has not yet signed any bilateral trade or investment agreements with the United States. The country is working to resolve challenges related to multiple and overlapping regional trade agreements in order to expedite the continental integration process under the AfCFTA. Ethiopia is receiving support from the United Nations Development Programme (UNDP) to implement the AfCFTA, including training for small and medium-sized enterprises (SMEs) and facilitating links between SMEs in different regions. Overall, the AfCFTA represents a significant opportunity for economic growth and integration across Africa, and Ethiopia is actively engaged in the process, despite some remaining challenges to be addressed.
