Ethiopia begins cutting customs duties under AfCFTA trade deal

ETHIOPIA – Ethiopia has officially started reducing customs duties on goods traded with 24 African countries under the African Continental Free Trade Area (AfCFTA).

The implementation follows the adoption of Council of Ministers Regulation No. 574/2025, published in the Federal Negarit Gazette on July 14, 2025.

The regulation marks the start of a gradual plan to remove tariffs on more than 90 percent of goods traded with eligible African partners. It fulfills Ethiopia’s commitments under the AfCFTA agreement, which the House of Peoples’ Representatives ratified and the African Union approved in February 2024.

According to the Ministry of Trade and Regional Integration, the move aims to strengthen Africa’s internal market. “We are opening doors for our businesses to trade more freely within Africa,” an official said, noting that tariff reductions will improve product competitiveness and create more export opportunities.

Among the 24 countries ready for trade with Ethiopia are Kenya, Ghana, Egypt, Morocco, Botswana, and Mauritius. These nations have completed domestic procedures and submitted trade proposals to the AfCFTA Secretariat, making them eligible for tariff reductions or duty-free access.

Implementation now underway

Ethiopia began applying the new tariff cuts on October 9, 2025. The plan supports the AfCFTA’s broader vision of a single African market that connects 55 countries, serving a combined population of 1.4 billion people with an estimated GDP of about 3.4 trillion US dollars.

To prepare for this transition, Ethiopian authorities identified key export products and target destinations. A National Coordinating Committee, bringing together the Ministries of Trade, Finance, and Agriculture, the Customs Commission, the National Bank, and logistics agencies, is now overseeing progress and resolving early challenges.

“We have aligned our customs systems with AfCFTA rules to ensure a smooth rollout,” said a representative from the Ethiopian Customs Commission. The agency has already instructed regional offices and traders to follow the updated tariff schedules and comply with import regulations of destination countries.

Ethiopian Airlines has begun exporting vegetables and fruits to Kenya, Somalia, and South Africa. The initiative reflects the early benefits of regional integration under AfCFTA. “We see fresh trade routes opening up for perishable goods,” a logistics officer at the airline said.

The Ethiopian government expects more local exporters to take advantage of the new framework as awareness grows. “This is an important moment for Ethiopia’s economy and for African trade as a whole,” said an official from the Ministry of Finance.

The AfCFTA, launched in 2021, aims to increase intra-African trade by reducing tariffs and non-tariff barriers, improving logistics, and encouraging local value addition. Ethiopia’s entry into this phase of implementation signals a firm commitment to regional trade growth and continental economic cooperation.

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