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08 June 2026 6 views

African Continental Free Trade Area (AfCFTA)

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theIAShub
08 Jun, 2026
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African Continental Free Trade Area (AfCFTA)
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World's largest free trade area by number of countries, creating a unified continental market.

Why in News

India is increasingly leveraging the AfCFTA—a USD 3.4 trillion market covering 1.4 billion people—by establishing manufacturing hubs in South Africa and Kenya for continent-wide market access as part of its realigned Africa strategy in June 2026.

Key Facts

  • AfCFTA is a free trade agreement among 54 of 55 African Union nations (all except Eritrea), launched operationally on 1 January 2021.
  • Creates a single continental market with a combined GDP of USD 3.4 trillion and population of 4 billion people.
  • Secretariat is located in Accra, Ghana; Wamkele Mene is the Secretary-General.
  • Aims to eliminate 90% of tariffs on goods and facilitate free movement of capital, persons, and investments progressively.
  • Expected to boost intra-Africa trade by 52% by 2030 and lift 30 million people out of extreme poverty. (UPSC Mains Usage: Links to GS2 International Relations—regional trade integration models)
  • Phase I (completed): tariff liberalization, trade facilitation, and dispute resolution protocols.
  • Phase II (ongoing): intellectual property rights, investment protocols, and competition policy frameworks.
  • Aligned with African Union Agenda 2063 vision for integrated, prosperous, and peaceful Africa. (UPSC Mains Usage: Links to GS2 IR—developmental cooperation and South-South trade)

Quick Revision Box

Term

Detail

Member States

54 of 55 AU nations; Eritrea is the only non-member

Market Size

USD 3.4 trillion GDP, 1.4 billion people

Operational Launch

1 January 2021; secretariat in Accra, Ghana

Tariff Target

Eliminate 90% of tariffs on goods progressively

Trade Boost

Expected 52% increase in intra-Africa trade by 2030

AU Agenda Link

Aligned with African Union Agenda 2063 integration vision


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