Sunday, November 30, 2025

Ethiopia implements customs tariff reductions with 24 AfCFTA Member States to boost continental trade

By Eyasy Zekarias

Ethiopia has officially commenced implementing customs duty reductions with 24 member states of the African Continental Free Trade Area (AfCFTA), marking a significant step forward in continental economic integration. This move, backed by Council of Ministers Regulation No. 574/2025 published in the Federal Negarit Gazette on July 14, 2025, initiates a multi-year plan to eliminate customs duties on over 90% of goods traded with eligible African partners.

The customs duty relief applies as part of Ethiopia’s commitment to the AfCFTA agreement, ratified by the House of Peoples’ Representatives and approved at the African Union summit in February 2024. The initiative promotes trade based on mutual acceptance and benefit among member states.

The 24 countries that have fulfilled their national requirements and submitted commodity trade proposals to the AfCFTA Secretariat include Algeria, Burundi, Botswana, Cameroon, Egypt, Eswatini, Gambia, Ghana, Kenya, Lesotho, Malawi, Mauritius, and Morocco, among others. These nations are now eligible for tariff reductions or duty-free trade with Ethiopia.

Launched officially on October 9, 2025, the AfCFTA aims to create a single continental market encompassing 55 African countries, a population of 1.4 billion, and a combined GDP of US$3.4 trillion. By removing tariffs and non-tariff barriers, the agreement seeks to enhance product competitiveness, foster intra-African trade, and stimulate economic growth.

Ethiopia has prepared strategically for AfCFTA implementation by identifying priority comparative advantage products, target countries, and mitigation strategies. A National Coordinating Committee comprising ministries, the Customs Commission, the National Bank, and logistics institutions oversees progress.

Already, Ethiopian Airlines has begun exporting meat, vegetables, fruits, dried coffee, and cereals to Kenya, Somalia, and South Africa, leveraging AfCFTA opportunities. The Customs Commission has issued guidance to branches and traders to ensure they understand the new tariff system and comply with destination countries’ regulations.

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