The AfCFTA agreement, which comprises 54 African countries, aims to increase intra-African trade, reduce trade barriers, and create a single market for goods and services, strengthening the continent's position in regional and global trade while promoting economic integration.

The agreement entered into force in May 2019, and trading under it began in January 2021. Egypt signed the AfCFTA agreement in 2018 and deposited its instrument of ratification in April 2019, becoming the 18th African Union member state to do so.

Egypt assumed the AfCFTA chairmanship from Tanzania in April 2025.

The trade agreement also promotes the movement of capital and investment, supports industrial development and regional value chains, and contributes to agricultural development and food security.

AfCFTA is one of the flagship projects of the African Union's Agenda 2063, which seeks to accelerate the continent's economic growth and development.

The handover was announced during the 18th AfCFTA Ministerial Meeting in Nigeria’s capital, Abuja, where ministers discussed progress in implementing the agreement and adopted decisions covering trade in goods and services, digital trade, investment, intellectual property rights, and the economic empowerment of women and youth.

African leaders and business executives have called for faster implementation of the agreement, describing it as a key pillar for strengthening Africa's economic sovereignty amid growing global political and economic uncertainty.

Intra-African trade continues to face challenges, including high transport and logistics costs, non-tariff barriers, and slow border procedures, limiting the continent's competitiveness amid rising geopolitical tensions.

Africa needs nearly $150 billion annually to meet its infrastructure needs, as financing shortages continue to constrain efforts to improve intra-African trade, which is projected to reach $230 billion by 2027, up from a record $220 billion in 2024.

The AfCFTA forms part of Egypt's efforts to promote continental trade integration, coordinate trade policies, and expand Egyptian exports and private-sector activity across African markets.

Egypt is projected to be Africa's second-largest economy in 2026, with a GDP of about $430 billion, ahead of Nigeria ($377 billion) and Algeria ($317 billion), but behind South Africa ($480 billion).

According to the ministry, Egypt pledged to support Nigeria in accelerating the implementation of the agreement. Full implementation of the AfCFTA could increase intra-African trade to 53 percent from 18 percent and generate $470 billion in additional income by 2035.

The agreement could also expand the continent’s manufacturing sector by $1 trillion and create 14 million jobs.

Investment and Foreign Trade Minister Mohamed Farid Saleh said Egypt advanced technical and institutional negotiations during its chairmanship, helping secure consensus after four years of talks on a framework for rules of origin covering the ready-made garments, textiles, and automotive sectors. He said the agreement would create more opportunities for the Egyptian private sector.

Egypt has sought to expand cooperation with Nigeria since 2025 in key sectors including trade, energy, agriculture, infrastructure, mining, construction, and pharmaceuticals.

This aligns with Egypt’s goal of strengthening its manufacturing sector to achieve a growth target of 7.5 percent by 2030, attract $24.6 billion in annual foreign direct investment (FDI), and increase non-oil exports by 15–20 percent annually.

Egypt expects its economic growth to reach 5.4 percent in the 2026/2027 fiscal year, with manufacturing expected to be the largest contributor to growth, accounting for 29 percent, followed by trade at 11.3 percent. The government also plans to increase healthcare spending by 25 percent.

Ministers also discussed mechanisms to reduce customs tariffs and complete the remaining negotiations on rules of origin.

Farid said the ministry aims to increase investment, maximize returns, deepen local manufacturing and improve the competitiveness of the Egyptian economy as part of the country's economic reform programme.

Egypt has also been expanding private-sector investment and economic partnerships across Africa. It has recently held talks with South Africa to strengthen cooperation and industrial integration in the pharmaceutical and automotive sectors.

South Africa has urged Egypt to finalize negotiations on a draft memorandum of understanding to establish an automotive industrial partnership under the AfCFTA.

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