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What is the African Continental Free Trade Area (AfCFTA)? The effect on Chinese exporters and African importers
The basics of AfCFTA, its rules of origin, and its effect on importing goods from China, assembly in Africa and regional distribution.
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AfCFTA is a free trade area covering the African continent. Trading under it started on 1 January 2021, with the aim of gradually removing most tariffs between African countries. It only gives preferences to African products that meet the rules of origin, so goods imported directly from China don't qualify, but goods processed with added value in Africa and then distributed regionally may benefit.
Information updated: 2026-10-03
The basics
- Trading started on 1 January 2021, driven by the secretariat based in Accra, Ghana.
- The aim is to gradually remove tariffs on about 90% of tariff lines between African countries and reduce non-tariff barriers.
- Through the Guided Trade Initiative, member states start actually trading under the agreement in batches.
Effect on China-Africa trade
| Scenario | Effect |
|---|---|
| Import finished goods from China and sell them domestically | No effect; the domestic import tariff still applies |
| Import finished goods from China and resell to other African countries | Generally no AfCFTA preference, as they don't meet African rules of origin |
| Import components and assemble or process in Africa | If the rules of origin are met, the finished goods may get preferences within the region |
Directions worth watching
- Setting up assembly or repacking in regional hubs such as Nigeria and Kenya to serve neighbouring markets.
- Following each country's detailed rules of origin and implementation progress.
- Demand for regional warehousing and distribution may grow as a result.