Ethiopia has officially commenced trade under the African Continental Free Trade Area (AfCFTA), marking a historic step towards deeper economic integration on the continent. Beginning with duty-free exports of key commodities such as coffee, meat, pulses, and oilseeds, Ethiopia aims to bolster intra-African trade, stimulate economic growth, and create jobs, aligning with the African Union’s Agenda 2063.
The African Continental Free Trade Area, which entered into force in 2019 and has been ratified by 47 African countries, represents the world’s largest free trade area in terms of participating nations. With a combined market of 1.4 billion people and a gross domestic product (GDP) of $3.4 trillion, the AfCFTA seeks to eliminate trade barriers, particularly for value-added goods, and catalyse the creation of regional value chains. According to the United Nations Economic Commission for Africa, its implementation has the potential to attract investment, stimulate industrialisation, and accelerate sustainable economic development across the continent.
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Ethiopia’s initial exports under the AfCFTA are strategically focused on East and Southern African markets. State Minister for Trade and Regional Integration, Yasmin Wohabrebbi, confirmed that Kenya will receive the country’s first shipments due to logistical advantages, followed shortly by exports to Somalia and South Africa. The shipments cover a diverse range of agricultural products, including meat, coffee, fruits, vegetables, beans, and edible oils, alongside selected manufactured goods such as textiles.
Preparations for this milestone involved meticulous completion of tariff schedules, validation of the national implementation strategy, and the issuance of Regulation No. 574/2025, which formalised the Provisional Schedule of Tariff Concessions in the Federal Negarit Gazette. Over 40 exporters have registered under the AfCFTA framework, though only a portion will participate in the initial phase, with the remainder finalising arrangements with their buyers.
The AfCFTA promises significant economic benefits for Ethiopia. By removing tariffs on traded goods, the country anticipates enhanced trade competitiveness, greater investment opportunities, and job creation. This initiative also opens doors for Ethiopian consumers to access a broader array of quality products at competitive prices.
Minister Wohabrebbi highlighted the importance of modernising transportation networks, enhancing technological infrastructure, and streamlining customs procedures to fully harness the opportunities offered by the AfCFTA. Ethiopia’s engagement in continental trade aligns with broader regional efforts to boost economic diversification and reduce dependency on traditional export markets outside Africa.
Looking Ahead: Harnessing Continental Integration
Ethiopia’s formal entry into AfCFTA trade is not merely a symbolic act; it is a strategic step toward realising Africa’s economic potential. With effective policy implementation, infrastructural upgrades, and consistent engagement with regional partners, Ethiopia can expect not only increased export volumes but also heightened industrial sophistication and investment inflows.
The AfCFTA represents a paradigm shift in African economic collaboration—one that promises to transform trade dynamics, stimulate growth, and unlock opportunities across the continent. As Ethiopia embarks on this new journey, its experience will serve as a reference for other African economies navigating the complexities and possibilities of a unified continental market.
