New Trade Agreement Boosts Intra-African Commerce by 18%
The African Continental Free Trade Area (AfCFTA) has reported an 18% increase in intra-African trade volumes during the first quarter of 2026, according to newly released data from the African Union Commission. This marks the most significant quarterly growth since the agreement entered into force in January 2021.
The growth is attributed to the progressive elimination of tariffs on 90% of goods, simplified customs procedures, increased awareness among small and medium enterprises (SMEs), and the operationalization of the Pan-African Payment and Settlement System (PAPSS).
Sectoral Breakdown
The sectors driving this growth include:
- Agricultural Products: A 24% increase in cross-border trade of fresh produce, grains, and processed foods, facilitated by harmonized sanitary and phytosanitary (SPS) standards.
- Textiles and Apparel: A 31% surge in trade, driven by the removal of tariff barriers and the growth of regional value chains connecting cotton producers in West Africa with garment manufacturers in East and Southern Africa.
- Manufactured Goods: A 15% increase in trade of machinery, vehicles, and electronic components, benefiting from simplified rules of origin and reduced customs clearance times.
The African Union Commission projects that full implementation of the agreement could boost intra-African trade by up to 52% by 2030, lifting an estimated 30 million people out of extreme poverty.