Implementation of the African Continental Free Trade Area (AfCFTA) continues to run into stark structural bottlenecks, with a comprehensive internal Ministry of Trade and Regional Integration document revealing that only 16 African countries have established tariff schedules covering all categories of goods.
The detailed progress report, titled Ethiopia’s Participation Process and Trade Activities under the African Continental Free Trade Area, highlights a wide gap between political commitments and practical readiness across the continent. While 50 out of the 54 African countries that signed the landmark agreement had formally ratified it through their legislative bodies as of February 2026, compliance regarding critical trading mechanisms lags far behind.
Under the AfCFTA protocol on trade in goods, 50 countries have submitted their provisional tariff schedules to the Accra-based Secretariat, with 49—including Ethiopia—successfully passing technical reviews and securing approval from the Council of Ministers. However, the document outlines that only 25 of these nations have published their schedules in official national gazettes, and just 16 have finalized schedules broad enough to span all categories of goods.
Despite these continental delays, the Ministry’s assessment describes overall framework negotiations as largely complete. Member states have worked through two major phases covering the founding agreement and eight distinct protocols. Attention is now shifting away from drafting new rules toward implementation, enforcement, and resolving operational hurdles.
Progress varies heavily by sector. In trade in services, 50 countries have submitted schedules of commitments, of which 25 have won approval across five designated sectors. Three overarching regulatory frameworks—including a crucial mutual recognition agreement—have been greenlit, though discussions remain active for transport and tourism frameworks. Meanwhile, institutional backstops are falling into place, underscored by the recent selection and appointment of all seven members of the AfCFTA appellate body to run the dispute settlement mechanism.
Other foundational pillars present a mixed picture. Negotiations under the investment protocol are still stalled on dispute settlement annexes, while four vital regulations under the competition policy protocol—handling mergers, continental authority guidelines, anti-competitive practice courts, and network rules—have been finished and passed to the Council of Ministers. Conversely, negotiations for intellectual property rights and digital trade are completely wrapped up, and the women and youth in trade protocol has secured approval, pending a final Council of Ministers regulation regarding specialized market opportunities.
For Ethiopia, the document provides an illuminating look at early trade performance under the framework between October 2025 and May 2026. During this window, Ethiopia exported products valued at more than $14.4 million while importing roughly $8.65 million. A total of 37 domestic companies participated in exports under the agreement, alongside 76 firms operating on the import side.
Bilateral trade patterns heavily skew toward East Africa, with Kenya emerging as an overwhelming destination and source. Kenya captured nearly 93 percent of Ethiopia’s initial exports under the framework, accounting for $13.35 million of the $14.4 million total. Trade with the remaining six partner countries—South Africa, Nigeria, Rwanda, Tanzania, Ghana, and Algeria—totaled just over $1 million combined. On the import side, Kenya supplied $5.61 million worth of goods, followed by Egypt at $2.11 million out of a four-country import total.
Commodity breakdowns show that oilseeds and related products dominated Ethiopia’s export receipts, generating nearly $5.7 million. Maize followed as the second-largest export at close to $900,000, with detergent and chemical products rounding out the top tiers at $780,000. Imports into Ethiopia were led by dry yeast and baking powder, synthetic hair, and television parts.
While the volume of trade remains modest, the Ministry notes that the AfCFTA framework has successfully expanded the geographic spread of Ethiopia’s export destinations. Furthermore, structural reforms undertaken to meet AfCFTA requirements—such as tackling non-tariff barriers and institutionalizing trade policies—are expected to simultaneously strengthen Ethiopia’s parallel preparations for eventual World Trade Organization (WTO) membership.
