MOGADISHU – Somali President Hassan Sheikh Mohamud has signed into law legislation approving the African Continental Free Trade Area (AfCFTA) agreement, paving the way for the Horn of Africa nation to formally join Africa’s largest single market, the government said.
The legislation was approved by Somalia’s federal parliament before being signed by the president, the Ministry of Commerce and Industry said in a statement.
The ministry said the presidential signature clears the way for Somalia to deposit its instrument of ratification with the African Union Commission, the final step required to complete the country’s accession to the continental trade pact.
Established by the African Union, the AfCFTA seeks to reduce trade barriers among African countries and create a single market covering more than 1.4 billion people with a combined gross domestic product estimated at about $3.4 trillion.
The Somali government said membership would give local businesses easier access to African markets, boost exports, attract foreign investment, support industrial development and create jobs.
Economists, however, say the benefits will depend on Somalia’s ability to implement the agreement, improve transport and trade infrastructure and strengthen domestic production to compete within the continental market.
Trading under the AfCFTA officially began on Jan. 1, 2021. The agreement’s secretariat is based in Accra, Ghana, but implementation has progressed unevenly across the continent, with inadequate infrastructure and limited intra-African trade continuing to pose significant challenges.
