Sept 6 – Somalia has formally ratified the African Continental Free Trade Area (AfCFTA), becoming the 50th country to deposit its instrument of ratification with the African Union and formally join the continent’s single-market framework.
Minister of Commerce and Industry Gamal Mohamed Hassan submitted Somalia’s instrument of ratification on Friday after the agreement received parliamentary approval and was assented to by President Hassan Sheikh Mohamud.
The Ministry of Commerce and Industry said the ratification completes Somalia’s domestic legal requirements, allowing the country to participate in a continental market representing more than 1.4 billion consumers.
“Somalia’s participation in the AfCFTA will create greater opportunities for local enterprises to access continental markets, attract foreign investment, diversify exports and participate effectively in regional value chains, supporting the country’s broader economic development,” the ministry said.
Somalia turns to implementation
With ratification complete, Somalia’s focus will now shift from legal approval to implementation.
The government has established a National Coordination Office to oversee and coordinate the domestic implementation of the agreement and help align national policies with Somalia’s obligations under the continental trade framework.
For Somali businesses, the agreement could provide greater opportunities to reach markets across Africa, while potentially improving the country’s ability to attract investment into export-oriented industries and regional supply chains.
The practical benefits, however, will depend on how effectively the government implements the agreement and enables businesses to meet the requirements for participating in continental trade.
AfCFTA expands its continental reach
The AfCFTA is designed to reduce trade barriers between African countries and establish a common framework for the movement of goods and services across national borders.
Its broader objective is to increase intra-African trade, strengthen regional value chains and support economic integration by making it easier for companies to operate across multiple African markets.
The AfCFTA Secretariat welcomed Somalia’s ratification and said it was prepared to support the country as it moves into the implementation phase.
“This milestone reaffirms Somalia’s commitment to Africa’s economic integration and strengthens our collective efforts to build one African market,” the Secretariat said.
What Somalia’s accession means for businesses
Somalia’s entry gives domestic companies a formal pathway into a continental trading system that spans dozens of African economies.
The government expects participation in the agreement to help local enterprises access new markets, encourage foreign investment and broaden the country’s export base.
It could also provide opportunities for Somali businesses to become more integrated into regional value chains, particularly as African economies increasingly seek to source more goods and services within the continent.
The immediate challenge, however, is turning ratification into commercial activity.
Somalia’s next phase will involve establishing the institutional, regulatory and business mechanisms required for companies and locally produced goods to take advantage of the AfCFTA framework.
With the legal process now complete, the country’s attention shifts to ensuring that Somali businesses can translate membership of Africa’s single-market project into greater trade, investment and economic opportunities.
