Friday July 31, 2026
Mogadishu (AX) — Somalia has cleared a crucial hurdle toward joining Africa’s single market after President Hassan Sheikh Mohamud signed the African Continental Free Trade Area (AfCFTA) Agreement into law, completing the country’s domestic ratification process.
The Lower House of Parliament ratified the legislation on Oct. 20, 2025. It allows Somalia to deposit its instrument of ratification with the African Union Commission, the last legal requirement for the country to become a state party to the continent’s leading trade pact, according to the Ministry of Commerce and Industry.
Created by the African Union, the African Continental Free Trade Area aims to build a unified African market by lowering trade barriers and enabling goods and services to move more freely across borders. With more than 1.4 billion people in its combined market, the bloc is the world’s largest free trade area by number of participating countries.
The Somali government expects membership to give local businesses greater access to markets, increase exports and draw foreign investment. Officials also say the agreement could advance industrialization, diversify the economy and generate new jobs.
Commerce and Industry Minister Gamal Mohamed Hassan called the signing a milestone in Somalia’s drive to deepen economic ties with the rest of the continent.
“By joining the African Continental Free Trade Area, Somalia is opening its doors to the world’s largest free trade area and positioning its private sector to compete across Africa,” Hassan said.
Hassan said the pact offers a framework for accelerating industrialization, attracting investment and driving sustained economic growth. He added that the government would coordinate closely with the private sector so Somali companies are equipped to take advantage of the opportunities the agreement creates.
The next stage will include bringing Somalia’s tariff schedules into line with AfCFTA obligations and establishing the legal and institutional systems needed to implement the deal, the ministry said. Authorities also plan nationwide awareness campaigns to prepare exporters, manufacturers, cooperatives, and small and medium-sized enterprises for the changing trade landscape.
Somalia’s move toward AfCFTA membership adds to a wider federal economic reform program pursued in recent years. The country has obtained debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative, carried out financial sector reforms and pushed for closer regional economic integration in an effort to attract capital, broaden its economy and reinforce long-term growth.
