Somalia Approves Africa Free Trade Area Law

Somalia has moved closer to joining Africa’s single market after President Hassan Sheikh Mohamud signed the African Continental Free Trade Area (AfCFTA) Agreement into law following its approval by the federal parliament.

The presidential assent clears the way for Somalia to submit its instrument of ratification to the African Union Commission, completing the final legal requirement for the country to become a state party to the continent-wide trade agreement.

The AfCFTA, established by the African Union, seeks to eliminate trade barriers among African countries and create a single market serving more than 1.4 billion people. It is widely regarded as the world’s largest free trade area by the number of participating countries and is expected to boost intra-African trade, investment and economic integration.

The Somali government said membership would expand market access for local businesses, encourage exports, attract foreign investment and support industrial development. Officials also believe the agreement will create employment opportunities and reinforce the country’s ongoing economic reform agenda.

Commerce and Industry Minister Gamal Mohamed Hassan described the development as a landmark achievement for Somalia’s economy, saying it would position the country’s private sector to compete more effectively across African markets.

The ministry said its next priority would be implementing the agreement by aligning Somalia’s tariff schedules with AfCFTA commitments, developing the necessary trade regulations and educating businesses, exporters, cooperatives and small enterprises on how to take advantage of the new opportunities created by the continental free trade area.

SOURCE: TRTAfrika