The Landscape of African Regional Integration and the Role of the AfCFTA in Advancing Continental Trade

The African regional integration landscape is highly complex, characterized by the coexistence of five operational customs unions together with several Free Trade Areas and regional communities that have not yet achieved the status of FTA. Among African Customs Unions, the Southern African Customs Union (SACU) is generally recognized as the oldest customs union in the world, established in 1889 under a Convention between the British Colony of the Cape of Good Hope and the Orange Free State Boer Republic. In 1910, SACU was extended to the Union of South Africa and the British High Commission Territories (HCTs), namely Lesotho (then Basutoland), Botswana (then Bechuanaland), and Eswatini (known as Swaziland until 2018). Namibia initially participated as a de facto member, as its territory was administered by South Africa under a 1920 League of Nations mandate. It became a de jure member only in 1990, upon gaining independence.

Another significant customs union is the East African Community (EAC), which has made substantial progress in regional economic integration. In particular, with the adoption of the Common Market Protocol in 2010, this Regional Economic Community began liberalizing the free movement of people, labor, services, and capital among its eight member states: Burundi, Kenya, Rwanda, Tanzania, Uganda, South Sudan, the Democratic Republic of Congo, and Somalia. However, integration within the EAC follows a variable-geometry approach. Somalia, the Democratic Republic of Congo, and South Sudan are not yet fully integrated into the EAC Customs Union and continue to apply standard customs duties on imports from other EAC member states.

The Economic Community of West African States (ECOWAS) represents another key experience in regional integration. Within its evolution, ECOWAS formally established a customs union in 2015 through the adoption of a Common External Tariff (CET), aimed at strengthening the regional market, facilitating intra-community trade, and promoting deeper economic integration among its member states. However, the ECOWAS customs union has recently been challenged by significant political and institutional developments. In January 2024, Mali, Burkina Faso, and Niger announced their withdrawal from this Community, followed by the formal cessation of their participation in the ECOWAS economic and customs integration framework on 29 January 2025. These three countries initiated the creation of a new regional entity, the Alliance of Sahel States (Alliance des États du Sahel), with the goal of strengthening political, economic, and security cooperation, and, in the medium to long term, pursuing a common currency.

Beyond the EAC and ECOWAS, Africa hosts other customs unions, including the Economic and Monetary Community of Central Africa (CEMAC) and the West African Economic and Monetary Union (WAEMU, commonly known by its French acronym UEMOA). Among these unions, only the EAC and ECOWAS are officially recognized by the African Union as Regional Economic Communities (RECs) and as fundamental pillars of the continental integration process. The legal framework guiding this process is provided by the Abuja Treaty, concluded in 1991 by the members of the Organization of African Unity, the predecessor of today’s African Union. This Treaty sets out a gradual, sequential roadmap toward continental economic integration, largely inspired by the European Union experience. Specifically, it envisions: (i) the creation and strengthening of customs unions within individual RECs; (ii) the subsequent merger of these unions into a continental customs union; (iii) the establishment of an African single market; and, ultimately, (iv) the creation of a continental monetary union.

Given the significant delays in implementing this ambitious program, a major breakthrough was the decision in 2012 to establish an African Continental Free Trade Area (AfCFTA). Although not explicitly foreseen by the Abuja Treaty, the AfCFTA serves as an intermediate step between the creation of customs unions within the RECs and the establishment of a continental customs union. This instrumental role is explicitly stated in Article 3 of the AfCFTA Agreement, which identifies among its objectives the strengthening of RECs and the gradual establishment of a continental customs union.

The AfCFTA entered into force on 1 January 2021. It has been signed by all African states except Eritrea and ratified by 49 of the 55 African Union member states. Once fully operational, the AfCFTA will constitute the largest free trade area in the world by number of participating countries since the creation of the World Trade Organization, with an estimated GDP of approximately USD 2.5 trillion and a population exceeding 1.3 billion people.

From a commercial perspective, the Agreement provides for the progressive elimination of customs duties and non-tariff barriers to facilitate the free movement of goods and services across the continent. This includes significant simplification of customs procedures and improved cooperation among border authorities. The strategic goal is to boost intra-African trade and reduce the continent’s historic dependence on extra-continental partners, which still account for the majority of African exports and imports.

Regarding tariff liberalization, the AfCFTA Agreement envisages the elimination of duties on 90% of tariff lines, with timelines differentiated according to the economic development level of member states. United Nations-classified Least Developed Countries (LDCs) have ten years to complete liberalization, whereas non-LDCs have five years. However, an interim agreement reached during negotiations allows non-LDCs that are part of customs unions including one or more LDCs to benefit from the longer transition period. As a result, 2030 effectively serves as the common deadline for most African states. For the remaining 10% of tariff lines, the Agreement distinguishes between:

• Sensitive products (up to 7%), subject to longer liberalization periods (13 years for LDCs and 10 years for non-LDCs); and
• Excluded products (up to 3%), which remain outside the tariff liberalization process.

The classification of goods as excluded products is subject to strict criteria established by a Decision adopted by the African Union Assembly during its 32nd Ordinary Session in January 2019. African states and customs unions may apply this option only if the products meet at least one of the following five criteria:

• a) Food Security: Products essential to ensuring national or local food availability, including staple or strategic agricultural goods whose domestic production is vulnerable and where sudden exposure to foreign competition could threaten food supply or price stability.
• b) National Security: Products critical to public safety, defense, or protection of key infrastructure, including items whose uncontrolled importation could threaten sovereignty or public order, such as dual-use materials or strategic resources.
• c) Fiscal Revenue: Products that generate significant government revenue through customs duties or excise taxes. Exclusion may be justified where rapid liberalization could compromise fiscal balance, particularly in countries with limited alternative revenue sources.
• d) Livelihood and Employment: Products vital to safeguarding domestic employment and income-generating activities. Typically, these include goods on which a significant portion of the population depends for their livelihood, where competition from imports could cause substantial social or economic disruption.
• e) Industrialization and Economic Development: Products that support nascent or strategic industries critical for industrial growth and economic diversification. Immediate liberalization could undermine emerging sectors, lead to deindustrialization, or threaten long-term development objectives.

Additionally, to qualify as an “excluded product,” the total domestic production of the good must not exceed 10% of the average imports of the same product from African countries over the three years preceding the AfCFTA’s entry into force. This condition is designed to prevent the exclusion of products already produced in substantial quantities. The objective is to balance the protection of strategic sectors with trade openness, avoiding unjustified exclusions that could hinder African trade integration. In essence, the criterion ensures that only goods whose domestic production is small and vulnerable relative to African imports are protected, preventing member states from using exclusions to shield already strong sectors.