How to Modernize Customs Procedures to Successfully Implement the African Continental Free Trade Area

Gilles Montagnat-Rentier, Brian Brimble, Georges Dudouyt and José García-Sanjinés

No 2025/002, IMF Fiscal Affairs Department from International Monetary Fund

Abstract: The African Continental Free Trade Area (AfCFTA), initiated by the African Union in 2012, aims to create the world's largest free trade area by reducing tariffs and facilitating trade among 54 African countries. Officially entering into force on May 30, 2019, it has the potential to diversify exports, accelerate growth, and attract foreign investment, potentially boosting regional incomes by 9 percent by 2035 and helping 50 million people exit extreme poverty. The agreement includes provisions to facilitate trade and investment, address regulatory measures, and cover trade in both goods and services. Customs administration is crucial for its success, requiring modernization, government support, and business cooperation. Trading under the AfCFTA began on January 1, 2021, but significant changes are needed for full implementation. This note discusses recommendations for customs administration reforms to optimize AfCFTA implementation, suggesting a regional one-year deadline for most relevant measures.

Keywords: AfCFTA Agreement; Digital Trade; Competition Policy; Protocol on Trade in Goods; Protocol on Trade in Services; Women and Youth in Trade; Intellectual Property Rights; AfCFTA Customs portal; Customs aspect; tariff elimination; data IMF Library; State party; origin unit; Customs administration core functions; Exports; Imports; Trade in goods; Trade facilitation; Africa (search for similar items in EconPapers)
Pages: 30
Date: 2025-04-11
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