The European Union (EU) and the AfCFTA Secretariat have signed a Memorandum of Understanding to strengthen cooperation on intra-African trade and investment, reinforcing efforts to scale up Africa’s single market under the AfCFTA framework.
The agreement was signed by H.E. Jozef Síkela, European Commissioner for International Partnerships, and H.E. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, on the sidelines of the EU–Ethiopia Business Forum held in Addis Ababa.
The MoU reinforces cooperation between the EU and the AfCFTA Secretariat in support of the African Continental Free Trade Area—currently the largest free trade area in the world by number of participating countries.
It aims to enhance regional integration, align European and African strategic interests, and unlock new investment opportunities across the continent.
The agreement builds on the broader African Union–European Union partnership, anchored in the Joint Vision for 2030, which was reaffirmed during the 7th AU–EU Summit in Luanda last year.
At the summit, leaders from both continents committed to working together towards a prosperous, stable, and sustainable future for Africa and Europe.
“With this MoU, the European Union reaffirms its commitment to support economic and trade integration across Africa under the AfCFTA framework,” Commissioner Síkela said.
“This will help drive sustainable growth, create decent jobs, and open up new opportunities for both African and European businesses.”
Secretary-General Wamkele Mene highlighted the strategic importance of the AfCFTA in attracting foreign direct investment (FDI), noting that European investment flows into Africa already exceed €250 billion, and accounting for approximately 40–50 percent of total FDI on the continent.
“This position is now further strengthened by the AfCFTA, which liberalises the trade and investment regime and enables European companies to leverage economies of scale across a single African market,” Mene stated.
Under the MoU, the EU and the AfCFTA Secretariat will operate within a structured framework guided by principles of strategic alignment and mutual benefit. The partnership will support policy dialogue, knowledge sharing, and coordinated engagement on trade and trade-related matters, including cooperation in regional and global forums.
The agreement also reinforces Africa-led development priorities, ensuring that collaboration aligns with Agenda 2063 of the African Union and contributes to a rules-based, open, and equitable multilateral trading system.
The EU and its Member States are the AfCFTA’s largest partners since its inception. A key pillar of this support is the €1.2 billion Team Europe Initiative (TEI) on African Economic Integration, which comprises over 80 programmes designed to strengthen intra-African trade.
The initiative aligns with both Agenda 2063 and the EU Global Gateway Strategy, and is jointly funded by the EU and several Member States, including Denmark, Germany, Ireland, France, the Netherlands, Portugal, Finland, and Sweden.
Among its flagship interventions is the EU Technical Assistance Facility (EU-TAF), which provides demand-driven support to the AfCFTA Secretariat, the African Union and its agencies, Regional Economic Communities, AU Member States, the private sector, and civil society organisations.
Through these efforts, the EU has consolidated its position as the single largest development and technical partner to the AfCFTA Secretariat.
Driving implementation across Africa
Both parties have committed to deepening intra-African trade and investment through ongoing dialogue and joint action, with a strong focus on ensuring the effective and full implementation of the AfCFTA across the continent.
The partnership is expected to deliver tangible benefits for African economies while creating new commercial opportunities for European businesses operating in or trading with Africa.
Source: businesspostonline
