Why the AfCFTA matters more today than ever

By Mark-Anthony Johnson

The African Continental Free Trade Area (AfCFTA) is the flagship initiative of the African Union’s Agenda 2063, a strategic blueprint for fostering inclusive and sustainable development across the continent over the next 50 years. Designed to enhance intra-African trade, the AfCFTA establishes a comprehensive and mutually beneficial trade framework among member states, covering trade in goods and services, investment, intellectual property rights, and competition policy.

Key Milestones

• Entry into Force: The AfCFTA officially came into effect on May 30, 2019, for the 24 countries that had submitted their instruments of ratification to the African Union Commission (AUC) Chairperson – the designated depositary.
• Secretariat Establishment: The AfCFTA Secretariat, responsible for overseeing the implementation of the agreement, is headquartered in Accra, Ghana. Wamkele Mene was appointed as the first Secretary-General on March 19, 2020, and is currently serving his second term. The Secretariat was officially inaugurated on August 17, 2020.
• Commencement of Trade: Trading under the AfCFTA framework began on January 1, 2021.

Recent Developments (2022 – 2025)

• Rules of Origin: As of January 2025, consensus has been reached on 92.3 percent of total tariff lines, paving the way for smoother trade integration.
• Pan-African Payments and Settlement System (PAPSS): The operational launch of PAPSS is revolutionizing cross-border transactions by facilitating efficient, real-time payments across African nations.
• AfCFTA Guided Trade Initiative (GTI):
  • Launched on October 7, 2022, in Accra, Ghana, the GTI aimed to facilitate commercially meaningful trade under the AfCFTA.
  • The initiative initially included eight participating countries: Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia, representing Africa’s five regions.
  • By 2024, the GTI expanded to cover a wider range of products and participating countries, with 37 State Parties now involved.

Current AfCFTA Status (March 2025)

• Ratification Progress: 48 out of 54 signatories (88.9 percent) have now deposited their instruments of ratification with the AUC Chairperson.
• Notable Exceptions:
  • Eritrea remains the only African country yet to sign the AfCFTA agreement.
  • Burkina Faso, Guinea, Mali, Niger, and Gabon are currently suspended from the African Union.

As we move through 2025, Africa continues to make remarkable strides toward economic integration, trade expansion, and sustainable development. Here’s to a prosperous and progressive future for the continent.

Mark-Anthony Johnson is the founder and CEO of JIC Holdings, a global asset and investment management firm founded in 2009. With over 30 years of experience and strong ties to Africa, his investments span mining, infrastructure, power, shipping, commodities, agriculture, and fisheries. He is currently focused on developing farms across Africa, aiming to position the continent as the world’s breadbasket.