LocationsAs the AfCFTA market emerges, the subjective conditions of countries may either facilitate or prevent access for 'Made in Africa' goods. Countries are at various stages of implementing the AfCFTA and applying the new terms of trade.
Trade intelligence tools to bridge gaps between African goods and markets
June 10, 2024
Burgeoning trade under the preferential terms of the African Continental Free Trade Area (AfCFTA) indicates progress towards realizing the objectives of the Agreement. Examples of intra-African goods exports under AfCFTA terms include electric vehicle batteries from Kenya, electronics from South Africa, agro-processed products from Cameroon and cosmetics as well as agro-processed products and textiles from Ghana.
As the AfCFTA market emerges, the subjective conditions of countries may either facilitate or prevent access for 'Made in Africa' goods. Countries are at various stages of implementing the AfCFTA and applying the new terms of trade. Importantly, AfCFTA tariffs are applied by those countries that have fully domesticated the relevant AfCFTA instruments. To benefit from preferential terms and treatment, goods must be certified as originating in an AfCFTA state. In addition, beyond tariffs, goods must also comply with quality and standards regulations.
Much of the formalities and modalities of intra-African trade in goods are opaque, technically expressed and held by disparate institutions. Insights into trade formalities and market conditions — will be key to increasing the volumes of intra – African trade in goods.
Benefitting from reduced tariffs
Intra-African trade varies widely in both size and type. For example, a hospitality business from Kenya signed a three-year contract manufacturing agreement with a Ghanaian partner to produce custom-made chocolates. In another case, sisal sourced from Aja Limited in Tanzania is distributed within the ECOWAS region.
Regardless of the transaction type, a crucial question is: what tariff will be applied? Tariffs significantly affect the pricing and competitiveness of products. For instance, Dzordzoe Skincare in Ghana has exported shea-butter-based cosmetics to several African countries and found that tariffs on their products vary—25 percent in Kenya and 20 percent in Namibia.
Progressive tariff reduction is underway in many countries, to remove tariffs on the bulk of goods (97 per cent of product lines) over 10-15 years. Countries’ specific tariff reduction schedules are available both via the AfCFTA e-tariff book and national tariff books, which may be available on the websites of relevant revenue authorities and customs agencies.
Example of AfCFTA tariff reduction on plantain chips
| Importing Country | Header | HS National Code | 2024 Tariff % | 2025 Tariff % | 2026 Tariff % |
| Country A | Dried Plantain | 0803.10.00 | 18.0 | 15.0 | 12.0 |
| Country B | Dried Plantain | 0803.10.20.00 | 12.0 | 10.0 | 8.0 |
| Country C | Dried Plantain | 08031000 | 15.0 | 12.5 | 10.0 |
| Country D | Dried Plantain | 0803.10.20.00 | 12.0 | 10.0 | 8.0 |
| Country E | Dried Plantain | 080310900 | 7.2 | 0.0 | 0.0 |
Source: author’s compilation from AfCFTA e-tariff book
Benefiting from reduced tariffs: rules of origin
To qualify for reduced tariffs, goods must originate in an AfCFTA state and be validated by an AfCFTA Certificate of Origin. Typically, these certificates are issued by Chambers of Commerce, Ministries of Trade, or Customs Authorities, depending on the country. The rules of origin, outlined in the AfCFTA rules of origin manual, are agreed upon at the continental level and applied by all member countries.
These rules of origin are product-specific, meaning different rules apply to different categories, such as motor vehicles and clothing. Businesses must understand the specific origin requirements for their products and comply with the necessary processes to gain certification.
Sample AfCFTA Certificate of Origin
Standards and quality certification
Goods also need to meet the quality standards of the importing country and often require a standards certificate. If there is a mutual recognition arrangement between countries, goods can be traded using the standards certificate issued by their national authority. For example, Aja Limited in Tanzania has exported sisal to several African countries using certification issued by the Tanzania Sisal Board.
In cases where mutual recognition of standards certificates is absent, businesses may depend on regional or international standards certification. Alternatively, they may need to obtain standards certification specific to the destination market.
Additionally, there are specific requirements in each country and for each product concerning testing, packaging, branding and advertising. For instance, some countries mandate that advertisements for food products be approved by a Standards Authority or Health Board. Compliance with these standards and regulations is crucial for goods to successfully enter other African markets.
Goods also need to meet the quality standards of the importing country and often require a standards certificate. If there is a mutual recognition arrangement between countries, goods can be traded using the standards certificate issued by their national authority.
Trade intelligence tools to connect businesses to the AfCFTA market
Trade rules and dynamics vary significantly depending on the context, highlighting the increasing need for trade intelligence tools to support businesses navigating the AfCFTA market. These tools, available at national and regional levels, can provide essential information on country-specific formalities such as applicable tariff lines, required certifications and other trade conditions across borders.
Trade intelligence tools can complement existing trade information and facilitation systems. They can also highlight services offered by logistics providers, including road corridors, coastal and inland shipping services visiting African ports, and air cargo options such as discounted rates from airlines like Ethiopian Airlines for AfCFTA shipments. As shipment volumes increase, business groups and clusters can negotiate favorable routes, schedules, and rates with freight service providers.
It's crucial that these tools are tailored for small and medium-sized enterprises (SMEs), which form the majority of Africa's private sector. Access to specific and up-to-date information on market entry requirements will empower SMEs in navigating the AfCFTA market, thereby enhancing the volume and value of intra-African trade in goods.