MOGADISHU
Somalia has joined the African Continental Free Trade Area (AfCFTA) after President Hassan Sheikh Mohamud signed the agreement into law, paving the way for the Horn of Africa nation to access a market of more than 1.4 billion people as it seeks to boost investment, exports and economic growth.
The move allows Somalia to deposit its instrument of ratification with the African Union Commission, completing the country’s accession to the continentwide trade framework.
In a statement Thursday, Commerce and Industry Minister Gamal M. Hassan described the agreement as a turning point for Somalia’s economy.
“Today marks a turning point in Somalia’s economic history. By joining the African Continental Free Trade Area, Somalia is opening its doors to the world’s largest free trade area and positioning our private sector to compete, innovate and prosper across Africa,” Hassan said.
“This is not simply a trade agreement. It is a strategic platform for industrialization, value addition, investment and inclusive economic growth.”
According to the minister, membership in the AfCFTA will give Somali businesses, manufacturers, cooperatives and investors preferential access to a unified African market of more than 1.4 billion people, boosting prospects for exports, industrialization, economic diversification and job creation.
The Ministry of Commerce and Industry will oversee implementation of the agreement, including aligning tariff schedules, developing trade instruments and conducting nationwide outreach to businesses and exporters.
Established by the African Union, the AfCFTA is the world’s largest free trade area by the number of participating countries, bringing together the bloc’s 55 member states and eight regional economic communities.
The agreement aims to create a single continental market with a combined gross domestic product of about $3.4 trillion and is one of the flagship projects under the African Union’s Agenda 2063 development strategy.
The AfCFTA entered into force on May 30, 2019, after the required number of member states deposited their instruments of ratification. Trading under the agreement officially began on Jan. 1, 2021, and the AfCFTA Secretariat is based in Accra, Ghana.
Wamkele Mene serves as the organization’s secretary-general and oversees implementation of the agreement across the continent.
