By Mohamed Abdi - Reporter
Somalia, July 31 2026 – Somali President Hassan Sheikh Mohamud has signed the African Continental Free Trade Area (AfCFTA) Agreement into law after it was ratified by parliament, completing the country's domestic approval process and paving the way for its accession to the continent's flagship free trade framework.
Somalia's House of the People ratified the agreement on Oct. 20, 2025, approving it by 145 votes to one, with no abstentions, in a move the government described as a key step toward integrating the country into Africa's single market.
The Ministry of Commerce and Industry said on Thursday the president's assent authorises Somalia to deposit its instrument of ratification with the African Union Commission, the final legal step required for the country to become a State Party to the agreement under international law.
The ministry said membership of the AfCFTA would give Somali businesses, manufacturers, cooperatives and investors preferential access to a unified African market of more than 1.4 billion people, creating new opportunities for exports, industrialisation, investment, economic diversification and job creation.
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"This marks a turning point in Somalia's economic history," Commerce and Industry Minister Gamal Hassan said in a statement. He said the agreement would help position Somali businesses to compete across African markets while supporting industrial development and private sector growth.
The ministry said it would now begin implementing the agreement by aligning tariff schedules, developing the necessary trade instruments and conducting nationwide outreach to prepare traders, exporters and small and medium-sized enterprises to benefit from the pact.
The African Continental Free Trade Area, launched by the African Union in 2018 and trading since 2021, is the world's largest free trade area by the number of participating countries. It seeks to boost intra-African trade by progressively reducing tariffs and other barriers, strengthening regional value chains and accelerating industrialisation across the continent.
Somalia has been pursuing closer regional economic integration as part of broader economic reforms aimed at expanding trade, attracting investment and strengthening the private sector.