The European Union has launched a six million Euro project geared towards kickstarting Ethiopia’s belated participation in the African Continental Free Trade Agreement (AfCFTA).
The four-year project, dubbed ECOTRADE, was introduced in Addis Ababa on Friday in the presence of Ethiopian government officials, the EU Delegation, regional representatives and private sector stakeholders as well as development partners.
The project is meant to strengthen private sector engagement in AfCFTA implementation in Ethiopia with an emphasis on SMEs and women-led businesses, according to an EU press release. Supporting policy alignment with AfCFTA protocols, enhancing infrastructure to integrate regional value chains, building capacity in trade policy, and value chain development are also among its stated goals.
“ECOTRADE is investing in people, in entrepreneurs, in women traders, in customs officials, in researchers and students, all of whom are agents of economic transformation,” reads a quote from EU Ambassador to Ethiopia Sofie From-Emmesberger.
Earlier this week, Trade Minister Kassahun Gofe told lawmakers Ethiopia will begin trading under the AfCFTA next month, six years after ratifying the agreement.
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Although the AfCFTA encompasses 55 countries and more than 1.3 billion people, minimal intra-continental trade, high poverty, inflation, debt, sluggish economic growth, ongoing conflicts, and the lingering impacts of the COVID-19 pandemic continue to hinder economic integration in Africa, jeopardizing its promise.
The glacial pace of adoption was the central topic of discussion when a committee of experts charged with overseeing the implementation of the AfCFTA met in Addis Ababa in March 2025.
“It just needs ratification but here we are, still talking about it,” the outgoing committee chair said during the meeting.
A report published by the UN Economic Commission for Africa (UNECA) this year highlights that intra-African trade accounts for only 14.4 percent of total trade on the continent, while an estimated 85 percent of Africa’s total exports (most of which are primary commodities) are directed towards the rest of the world.
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