Somali President signs law to join Africa’s Free Trade Area

Friday July 31, 2026

Mogadishu (HOL) — Somali President Hassan Sheikh Mohamud has signed into law the African Continental Free Trade Area (AfCFTA) Agreement, completing the country’s domestic ratification process and paving the way for Somalia to join Africa’s single market.

The legislation, ratified by the Lower House of Parliament on Oct. 20, 2025, authorizes Somalia to deposit its instrument of ratification with the African Union Commission, the final legal step required to become a state party to the continent’s flagship trade agreement, the Ministry of Commerce and Industry said.

The African Continental Free Trade Area, established by the African Union, seeks to create a single African market by reducing trade barriers and promoting the free movement of goods and services across the continent. Covering a market of more than 1.4 billion people, it is the world’s largest free trade area by the number of participating countries.

The Somali government said membership is expected to expand market access for domestic businesses, boost exports, attract foreign investment, support industrialization and economic diversification, and create new employment opportunities.

Commerce and Industry Minister Gamal Mohamed Hassan described the signing of the legislation as a landmark in Somalia’s economic integration with the rest of Africa.

“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.

He said the agreement provides a platform to accelerate industrialization, attract investment and stimulate long-term economic growth, adding that the government will work closely with the private sector to ensure Somali businesses can capitalize on the opportunities created by the agreement.

According to the ministry, the next phase will focus on aligning Somalia’s tariff schedules with AfCFTA commitments, developing the legal and institutional frameworks required for implementation and conducting nationwide awareness campaigns to help exporters, manufacturers, cooperatives and small and medium-sized enterprises prepare for the new trading environment.

Somalia’s accession to the AfCFTA marks another step in a broader economic reform agenda pursued by the federal government in recent years. The country has secured debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, implemented financial sector reforms and sought deeper regional economic integration as part of efforts to attract investment, diversify the economy and strengthen long-term growth.