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Republic of Namibia

Ministry of International Relations & Trade

Namibia Trade Information Portal

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African Continental Free Trade Area (AfCFTA)

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I. Overview

  1. The African Continental Free Trade Area (AfCFTA) is one of the Flagship Project of Agenda 2063 Africa’s development framework bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities  (RECs)
  2. The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$ 3.4 trillion.
  3. The AfCFTA Agreement entered into force on 30 May 2019 after 24 Member States deposited instruments of ratification.
  4. Namibia signed the AfCFTA Agreement on 02 July 2018 and ratified the agreement on 25 January 2019
  5. Trading under the AfCFTA commenced on 1 January 2021
  6. The AfCFTA  has five operational instruments that have been or are in the process of being developed:
    • an AfCFTA e-tariff book, which is in the process of being developed, and will enable easy access for users to tariff concessions schedules;
    • a mechanism for traders to report online specific trade obstacles encountered in moving goods and services across borders, which has been fully operational since January 2020;
    • a Pan-African Payments and Settlement System designed to enable efficient, low-cost, and secure financial transactions across African borders, which should be fully operational by end-2025;
    • an AfCFTA Adjustment Fund to support state parties and their private-sector operators to adjust to a more open and integrated trading environment; and
    • an Automotive Fund, financed by Afreximbank, to support African investments in the automotive value chain and to provide consumer financing (loans) and insurance product

II. AfCFTA Key Benefits

  1. The AfCFTA boosts intra-Africa trade through:
    • progressive elimination of tariffs;
    • elimination of non-tariff barriers;
    • facilitating cooperation on customs matters, trade facilitation and transit;
    • enhanced cooperation in the areas of technical barriers to trade and sanitary and phytosanitary measures;
  2. Stimulates Africa’s industrial development and employment creation.
  3. Contributing to positive investor climate in Africa
  4. Provides legal certainty and predictability of markets
  5. Encourages a rules based multilateral trading system.
  6. Establishes a fair and impartial dispute resolution mechanism.

III.     Key Benefits for Namibia:

  • Trade Diversification: The AfCFTA offers Namibia the chance to break the dependency on a few commodities and markets by opening up new trade routes and sectors. This diversification strengthens the economy against global shocks and taps into new areas of growth.
  • Investment Influx: By creating a more attractive investment destination, the AfCFTA can spur both foreign and intra-African investments in Namibia. This investment can drive innovation, infrastructure development, and job creation.
  • Economic Growth: The integration into AfCFTA is expected to significantly boost Namibia's GDP. By engaging in the free trade area, Namibia can accelerate its economic development and increase its competitiveness on the global stage.

More information can be obtained from AfCFTA Home - AfCFTA (auafcfta.org)