Africa's trade vision meets reality as customs, regulations collide - explainer

The African Continental Free Trade Area (AfCFTA) faces implementation hurdles beyond the political agreement, as national customs systems, unfinished legal rules, and incompatible payment networks obstruct routine trade. The agreement, signed in 2018 and operational since 2021, has 54 signatories and 49 ratifications. A $3.1 billion customs-modernization concession was signed in August 2026, but challenges remain in harmonizing procedures, digital systems, and cross-border payments.

The African Continental Free Trade Area (AfCFTA) is entering a more difficult phase as the political agreement meets the reality of customs offices, central banks, and regulatory agencies. The agreement, signed in Kigali in 2018 and operational since January 2021, aims to reduce tariffs and barriers across 54 signatory nations, with Eritrea the lone exception. As of July 2026, 49 countries had deposited ratifications. The World Bank described the prospective market as covering approximately 1.3 billion people with a combined GDP of about $3.4 trillion. The AfCFTA Secretariat reported over 12,000 certificates of origin issued by March 2026. In August 2026, the Secretariat signed a 20-year, $3.1 billion concession agreement with Nigerian company Bergmans Security Consultants and Supplies Ltd. for a continent-wide customs-modernization project. The Pan-African Payment and Settlement System (PAPSS), developed by the African Export-Import Bank, connects 28 countries, over 190 commercial banks, and 16 payment switches by July 2026. The article notes that institutional differences, incompatible customs systems, and unresolved questions about dispute resolution and data sharing remain significant obstacles.