Addis Ababa / Nairobi – October 10, 2025
Ethiopia has formally commenced trading with Kenya under the African Continental Free Trade Area (AfCFTA), marking a major milestone in the Horn of Africa’s economic integration efforts. The move makes Kenya the first destination for Ethiopian exports under the AfCFTA’s Guided Trade Initiative (GTI) — a pilot programme designed to operationalize the continent-wide free trade agreement.
According to Ethiopia’s State Minister for Trade and Regional Integration, Yasmin Wohabrebbi, the initial consignments include meat, coffee, edible oil, fruits, vegetables, beans, and textiles, among other agricultural and manufactured products. The goods are being transported both by air, through Ethiopian Airlines Cargo, and via road networks connecting the two neighbouring countries.
Speaking during the COMESA Heads of State and Government Summit in Nairobi, AfCFTA Secretary-General Wamkele Mene welcomed Ethiopia’s entry into the Guided Trade Initiative, describing it as a “transformative step that turns commitments into action.” Mene noted that the progress of Ethiopia and Kenya will serve as a model for other African nations seeking to expand intra-continental trade.
“We are now witnessing AfCFTA moving from paper to practice,” Mene said. “Ethiopia’s participation signals confidence in Africa’s ability to trade with itself, strengthening economic independence and regional supply chains.”
A Turning Point for Regional Trade
Ethiopia’s first shipment under AfCFTA comes seven years after it signed the agreement in Kigali in 2018. The country has since spent years harmonizing tariffs, customs documentation, and service liberalization policies to align with continental standards.
Officials in Addis Ababa say the launch will help Ethiopian exporters access Kenya’s growing consumer market while giving Kenyan traders an opportunity to supply machinery, processed foods, and technology products to Ethiopia. The move is expected to stimulate bilateral trade volumes and attract new investment in logistics and value-added manufacturing across the border.
Trade experts view the Ethiopia–Kenya partnership as a crucial step toward consolidating the Horn of Africa as a unified economic bloc, potentially influencing regional trade routes that stretch to Somalia, Somaliland, Djibouti, and South Sudan.
Expanding Beyond Kenya
The Ethiopian government has indicated that Kenya will not be the only partner under the AfCFTA’s Guided Trade Initiative. Plans are underway to extend the scheme to additional African countries, including Tanzania, Uganda, Zambia, South Sudan, Nigeria, Malawi, Cameroon, and Egypt.
The Ministry of Trade and Regional Integration said that “Ethiopia aims to build reliable trade corridors with partners who share a vision for African economic integration and industrial development.”
By launching these first shipments, Addis Ababa joins a small group of African nations — including Rwanda, Ghana, and Egypt — that have begun active trade under the AfCFTA banner.
A Boost for Continental Integration
The AfCFTA agreement, which came into effect in 2021, seeks to create the world’s largest single market, covering 1.4 billion people with a combined GDP of more than $3.4 trillion. It aims to reduce tariffs on 90 percent of goods, remove non-tariff barriers, and harmonize trade regulations to allow freer movement of goods and services across borders.
For Ethiopia and Kenya, whose trade has long been limited by bureaucratic barriers and infrastructure gaps, the agreement represents a chance to redefine cross-border cooperation. The new trade corridor could enhance connectivity between Addis Ababa and Nairobi, while boosting related sectors such as transport, warehousing, and financial services.
To complement these developments, COMESA recently launched a Digital Retail Payments Platform, designed to reduce transaction costs and facilitate local-currency settlements for small and medium-sized enterprises trading across African borders.
Opportunities and Challenges Ahead
Economists say the Ethiopia–Kenya pilot will test the practicality of the AfCFTA’s promises. Potential benefits include improved market access, industrial cooperation, and regional value-chain development. However, challenges remain — including persistent non-tariff barriers, customs delays, and infrastructure limitations.
Analysts also caution that unequal readiness among member states could slow momentum. “Trade liberalization requires not only political will but also logistics infrastructure, digital systems, and mutual trust,” noted a Nairobi-based trade consultant.
Despite the hurdles, optimism remains high that Ethiopia’s decision to move forward will encourage other Horn nations — including Somalia, Djibouti, and Eritrea — to accelerate their AfCFTA implementation.
A New Chapter for the Horn
The launch of AfCFTA trade between Ethiopia and Kenya symbolizes more than just commerce; it signals a shift in regional strategy toward economic interdependence and collective growth. For a region historically defined by political divisions, this new trade linkage could lay the foundation for long-term stability and shared prosperity.
Whether the move ushers in an era of deeper cooperation or sparks fresh competition remains to be seen. But for now, the Horn of Africa is stepping into the continental market with renewed confidence — and Ethiopia is leading the way.