Addis Ababa begins duty-reduction rollout across 24 African nations, aligning with export surge and deeper trade opportunities.
Duty-Reduction Kick-Off Under AfCFTA
Ethiopia began implementing customs duty reductions with 24 other African nations under the African Continental Free Trade Area (AfCFTA). The move follows the publication of Council of Ministers Regulation No. 574/2025 in the Federal Negarit Gazette.
The regulation marks the beginning of a multi-year plan to gradually eliminate customs duties on more than 90% of goods traded with eligible African partners. Implementation officially commenced on last month, with Ethiopia aligning with the broader AfCFTA objective of a single continental market across 55 countries.
First Export Shipments and Market Access
Ethiopia dispatched its inaugural consignments to countries including Kenya, Somalia and South Africa, under the Guided Trade Initiative pilot arrangement of the AfCFTA. Exported items included meat, vegetables, fruits, khat, white and red beans, coffee, maize and beans, according to the Ministry of Trade and Regional Integration.
Strong Export Momentum
Ethiopia’s export performance is showing significant growth. In the first quarter of the 2025/26 fiscal year (from 6 July 2025), the country earned US $2.48 billion in export revenue — a 117 % increase compared with the same period a year earlier. Minister Kassahun Gofe said the Ministry achieved 65 % growth in export earnings and 117 % of its plan implementation rate. “This year, the government will consolidate and raise the growth rate to nine percent through strengthening macroeconomic stability and broadening growth across key sectors,” said President Taye Atske Selassie in a national broadcast.
Strategic Implications for Intra-African Trade
Ethiopia’s AfCFTA rollout marks a pivotal step toward strengthening intra-African trade connectivity and regional integration.
Duty-reduced goods and services from Ethiopia can now access a broader African market, improving cross-border supply chains and export diversification.
The move reinforces East Africa’s role as a key driver of continental trade, boosting competitiveness in sectors such as agribusiness, manufacturing and light industry.
By streamlining customs procedures and aligning tariff structures, the AfCFTA framework is expected to lower transaction costs, enhance logistics efficiency and foster value-addition across African economies.
Implementation Challenges and Outlook
Despite the positive indicators, operational readiness remains a focus area. Tanzania, Uganda, Nigeria, Malawi, Cameroon, Zambia and South Sudan are among those Ethiopia is “eyeing” for reciprocal trade flows, indicating a phased rollout. Trade Minister Yasmin Wohabreb expressed optimism that participation would significantly expand the country’s export base.
AfCFTA Secretariat, including Secretary-General Wamkele Mene said of the news, “More needs to be done to build the economic self-sufficiency of our continent by creating a truly viable domestic market in Africa through the AfCFTA. No country should be left behind.” The effectiveness of the duty-cut regime will depend on logistics infrastructure, customs capacity, rules-of-origin compliance and currency stability, all vital for realizing the full potential of intra-continental trade.
In launching duty-free exports under the AfCFTA and witnessing rapid export growth, Ethiopia is signaling its ambition to become a regional trade hub. As tariffs fall and trade flows diversify, stakeholders should monitor Ethiopia’s evolving market access, export performance and logistics infrastructure for investment and partnership opportunities.
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