MOGADISHU — Somalia has officially ratified the African Continental Free Trade Area (AfCFTA) Agreement, marking a major milestone in the country’s economic integration with the rest of Africa and paving the way for its participation in the continent’s single market.
The agreement entered into force following approval by Somalia’s Federal Parliament and the signing of the ratification into law by President Hassan Sheikh Mohamud. The move enables Somalia to formally participate in the African Union’s flagship trade initiative, which seeks to create the world’s largest free trade area by the number of participating countries.
The African Continental Free Trade Area aims to remove tariffs on most goods, reduce non-tariff barriers, facilitate the free movement of goods and services, encourage investment, and strengthen economic cooperation among African nations. The agreement covers a market of more than 1.4 billion people with a combined gross domestic product estimated at more than US$3 trillion.
Somali officials described the ratification as a significant step toward expanding the country’s economic opportunities, improving access to regional and continental markets, attracting foreign investment, and increasing the competitiveness of Somali businesses.
The government said membership in the AfCFTA is expected to support trade diversification, promote industrial development, strengthen exports, and create new opportunities for entrepreneurs, manufacturers, farmers, and small and medium-sized enterprises.
Officials also noted that the agreement will help Somalia deepen its economic ties with neighboring countries and the wider African continent while supporting the country’s long-term development agenda and efforts to integrate into regional and global value chains.
Economists say successful implementation of the agreement will require continued investment in transport infrastructure, customs modernization, trade facilitation, and regulatory reforms to enable Somali businesses to fully benefit from expanded access to African markets.
Somalia’s accession to the AfCFTA represents another step in the country’s broader economic reform agenda as the government seeks to boost private-sector growth, create employment opportunities, and position Somalia as an active participant in Africa’s expanding regional economy.
