The African Continental Free Trade Area (AfCFTA) aims to create a single, unified market for goods and services across the African continent.
It is a flagship project of the African Union’s Agenda 2063, aiming to accelerate economic diversification and regional integration.
The agreement creates the world’s largest free trade area, connecting 54 African Union nations (54 signatories) to form a single market for goods and services.
The AfCFTA aims to boost intra-African trade by about 81% by 2035 by eliminating tariffs on 90% of goods, reducing non-tariff barriers, and lowering poverty for 30-million people.
The agreement officially entered into force on 30 May 2019, with formal trading commencing on 1 January 2021.
The Guided Trade Initiative (GTI) was launched in October 2022 to pilot actual trade between eight countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia) for specific products like batteries, coffee, and tiles.
Meanwhile the Pan-African Payment and Settlement System (PAPSS) was launched to allow for cross-border payments in local African currencies, reducing reliance on the US dollar.
As of April 2026, the AfCFTA transitioned to a practical delivery phase.
What’s happening now?
While broader trading is still ramping up, several key mechanisms are now active.
For instance, the pilot of the Guided Trade Initiative (GTI) is now the main engine for real-world trade. As of early 2026, it has expanded to include a wider range of countries and products.
A total of 24 countries have gazetted their tariff schedules and started preferential trading including South Africa, Nigeria, Kenya, Egypt, Ghana, and Rwanda.
Shipments of goods traded have expanded to include a variety of value-added products like automotive parts, textiles, coffee, tea, and processed foods.
Importantly, many of the participating countries are currently in Year 5 of their agreed 10-year tariff reduction schedules, which were applied retrospectively from January 2021.
The PAPSS is increasingly being used to allow African businesses to pay for imports in their local currencies rather than US dollars. Some major economies like South Africa are still finalising full integration.
Meanwhile, a multibillion-dollar Adjustment Fund is now accessible to help countries manage the short-term loss of tariff revenue as they open their markets.
What’s still to come?
With the basic framework in place, Phase II and Phase III are now underway.
Digital trade is a big focus for 2026. The protocol and its eight annexes, which cover digital payments and data transfers, have been adopted. However, full ratification by the required 22 states is still ongoing.
Investment and competition protocols were adopted in 2023. During 2025 and 2026 work has been ongoing to establish the AfCFTA Competition Authority and Tribunal to address anti-competitive cross-border practices.
In February 2024, a protocol addressing women and youth in trade was adopted and is currently undergoing national ratification processes.
In February 2026 the Automotive Rules of Origin were finalised, clarifying exactly what qualifies as an “African-made” vehicle for duty-free trade.
What are the challenges?
Non-tariff barriers (NTBs) remain the biggest hurdle to full implementation of the AfCFTA. These could account for as much as 60% of trade costs due to inconsistent customs procedures and red tape at borders.
Seamless infrastructure is going to be key for the full implementation of the AfCFTA. There is an annual funding gap of about $50-billion needed to fix the roads, rails, and ports required.