Nigeria begins exporting to Kenya under key African trade agreement

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Published 7:35 PM ET, Saturday January 25, 2025

Nigeria has started exporting goods to Kenya under the African Continental Free Trade Area (AfCFTA), marking a significant milestone in intra-African trade. This move aligns with the agreement’s goal of fostering economic integration, increasing trade among African countries, and reducing dependence on external markets.

The export, comprising synthetic filaments from Lucky Fibres Limited (Lush), was coordinated by Nigeria’s AfCFTA Coordination Office in line with an African Union directive. According to Olusegun Olutayo, a senior trade expert at the Nigeria AfCFTA Office, the initiative is a testament to Africa’s strategic focus on enhancing market access amid global economic tensions. The Nigerian office praised Kenya’s seamless collaboration, crediting the AfCFTA Secretariat and Kenya Revenue Authority for their roles in the initiative’s success. AfCFTA, involving 54 nations, aims to create the world’s largest free trade area by reducing tariffs, promoting industrialization, and fostering economic growth for Africa’s 1.3 billion people.

Key Highlights

First Shipment Under AfCFTA

The trade involves products covered under the AfCFTA, an agreement that aims to eliminate tariffs on 90% of goods, increase intra-African trade, and create a single market for goods and services.

Impact on African Trade

This export marks a step toward realizing the potential of the AfCFTA, which could boost intra-African trade by over 50% by 2030, according to estimates by the African Union and the United Nations Economic Commission for Africa.

Focus on Economic Integration

The trade reflects Nigeria’s commitment to diversifying its economy beyond oil exports and Kenya’s role as a key trade hub in East Africa.

Potential Sectors for Growth

Sectors such as agriculture, manufacturing, and processed goods are likely to benefit from reduced trade barriers, improving value addition and creating jobs.

This development underscores Africa’s drive to unlock the benefits of its combined $3.4 trillion GDP under the AfCFTA, fostering stronger economic collaboration and reducing reliance on imports from outside the continent.

The African Continental Free Trade Area (AfCFTA) was signed by 44 African countries at a summit of the African Union in Kigali, Rwanda, in March 2018

10 of the African Union’s (AU) 55 member states did not sign the agreement.

The summit was a step forward for the AU’s 2063 project for closer African integration, with 27 member states also signing a commitment for the free movement of persons.

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