Addis Ababa (Dawan Africa) – Ethiopia has officially begun implementing the African Continental Free Trade Area (AfCFTA) agreement, marking a significant economic milestone for the Horn of Africa nation and the continent at large.
The move, which took effect on July 1, transitions Ethiopia from political commitment to practical execution, joining other African Union (AU) member states in advancing the continent’s most ambitious trade integration initiative.
AfCFTA, signed in 2018 and launched in 2021, aims to create a single market for goods and services across 54 AU countries—excluding only Eritrea—covering a population of 1.3 billion and a combined GDP exceeding $3.4 trillion.
Speaking to Anadolu Agency (AA), senior Ethiopian economist and politician Abdulqadir Adem described the move as a “landmark moment” for Ethiopia. However, he cautioned that real success hinges on more than trade policy.
“Implementing AfCFTA is not just about reducing tariffs. It requires infrastructure, efficient customs systems, logistics, and, most importantly, peace across borders. Without these, trade will remain a theory,” said Adem.
Ethiopia, which hosts the AU headquarters in Addis Ababa, ratified the agreement in 2019. However, its implementation was delayed by internal conflict and macroeconomic challenges. With relative stability returning and institutional reforms underway, the country is now set to move forward.
Minister of Trade and Regional Integration Kassahun Gofe said the government will prioritize exports in sectors where Ethiopia has a comparative advantage, such as coffee, leather, and textiles.
Experts note that the AfCFTA’s implementation aligns with the AU’s broader Agenda 2063 goals, which include a continental customs union, a pan-African parliament, and an African Monetary Union with a single currency.
To accommodate economic disparities, least-developed countries like Ethiopia have up to 10 years to eliminate tariffs on 90% of goods, with an additional five years for sensitive products. Another 7% of goods may be excluded entirely.
Adem emphasized that some short-term trade-offs—such as loss of tariff revenue—may be unavoidable but ultimately worthwhile.
“The bottom line is political will,” he said. “If leaders follow through and maintain peace, the long-term benefits of this agreement will be shared across the continent.”
Source: Anadolu Agency (AA)
