On Friday 10 March, Rwanda officially became the host country for the African Continental Free Trade Area (AfCFTA) adjustment fund. The agreement was signed in Kigali between the Rwandan government, the AfCFTA secretariat, and the African Export-Import Bank. This marks another significant milestone in the implementation of what is poised to become the world’s largest free trade area.
Five years after the initial agreement establishing the AfCFTA was signed in Kigali in March 2018, the Rwandan capital once again hosted a pivotal moment for the free trade area. The agreement to host the adjustment fund underscores Kigali's role as a key player in the AfCFTA's development.
The $10 billion adjustment fund, with an initial pledge of $1 billion from the African Export-Import Bank, aims to address short-term revenue losses resulting from reduced taxes on intra-African trade. Additionally, it will support the private sector in harnessing the opportunities created by the free trade area.
The next major step, according to AfCFTA Secretary General Wamkele Mene, will be a meeting of trade ministers from member states in June 2023 in Kigali. This meeting will define the eligibility criteria for access to the fund.
Following this, the distribution of capital to beneficiaries is expected to commence in July 2023.