Somali President Hassan Sheikh Mohamud has signed the African Continental Free Trade Area (AfCFTA) Agreement into law after its ratification by the federal parliament, paving the way for Somalia to join Africa's single market.

The presidential assent allows Somalia to deposit its instrument of ratification with the African Union Commission, the final step required to become a state party to the continent-wide trade agreement, according to Somalia's Ministry of Commerce and Industry.

Established by the African Union, the AfCFTA seeks to reduce trade barriers among African countries and create a single market of more than 1.4 billion people. It is the world's largest free trade area by the number of participating countries.

The government says membership will give Somali businesses preferential access to African markets under the agreement's rules. It also expects the deal to boost exports, attract investment, support industrial development and economic diversification, and create jobs, although the extent of those gains will depend on implementation and broader economic conditions.

Milestone

Somalia's Commerce and Industry Minister Gamal Mohamed Hassan described the ratification as a milestone for Somalia's economy.

"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 government viewed the agreement as a platform to accelerate industrialisation, attract investment and drive economic growth, adding that the ministry would work closely with the private sector to maximise opportunities arising from membership.

The ministry said its next priorities include aligning Somalia's tariff schedules with AfCFTA commitments, developing the required trade instruments and conducting nationwide outreach to help businesses, exporters, cooperatives, and small and medium-sized enterprises prepare for implementation.

Somalia has pursued a series of economic reforms in recent years, including securing debt relief, strengthening the financial sector, and deepening regional economic integration, as it seeks to attract foreign investment and expand trade.