The agreement founding AfCFTA was brokered by the African Union (AU) and signed by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018.

[16] On April 29, 2019,[18] the Sahrawi Republic made the 22nd deposit of instruments of ratification, bringing the agreement into force on May 30; it entered its operational phase following a summit on July 7, 2019,[19] and officially commenced January 1, 2021.

[20][21] Under the agreement, AfCFTA members are committed to eliminating tariffs on most goods and services over a period of 5, 10, or 13 years, depending on the country's level of development or the nature of the products.

[20] General long-term objectives include creating a single, liberalised market; reducing barriers to capital and labor to facilitate investment; developing regional infrastructure; and establishing a continental customs union.

[22] The overall aims of AfCFTA are to increase socioeconomic development, reduce poverty, and make Africa more competitive in the global economy.

The operational phase, which effectively puts the agreement into force, is characterized by the following actions: In 1963, the Organization of African Unity was founded by the independent states of Africa.

[26] A second goal was to "coordinate and harmonize the policies between the existing and future Regional Economic Communities for the gradual attainment of the objectives of the Union.

"[27] At the 2012 African Union summit in Addis Ababa, leaders agreed to create a new Continental Free Trade Area by 2017.

The Protocol on Free Movement of Persons seeks to establish a visa-free zone within the AfCFTA countries, and support the creation of the African Union Passport.

[31][32][33] One complicating factor in the negotiations was that Africa had already been divided into eight separate free trade areas and/or customs unions, each with different regulations.

[note 1] These regional bodies will continue to exist; the African Continental Free Trade Agreement initially seeks to reduce trade barriers between the different pillars of the African Economic Community, and eventually use these regional organizations as building blocks for the ultimate goal of an Africa-wide customs union.

[40][needs update] In 2018, the United Nations Economic Commission for Africa estimated that AfCFTA would boost intra-African trade by 52 percent by 2022.

[28][35] The 12th Extraordinary Session of the African Union on AfCFTA, called to launch the new agreement into its operational phase, was hosted in Niamey on July 7, 2019.

[46][47] At its launch, five operational instruments that will govern the AfCFTA were activated: "the rules of origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payment system; and the African Trade Observatory.

"[48] Phase II and III negotiations are expected to be initiated by all AU member countries and held in successive rounds.

[57] In July 2019, just months after being re-elected to a new term, Buhari agreed to join the agreement at the 12th extraordinary session of the assembly of the union on AfCFTA.

[61][needs update] A July 2017 United Nations Economic Commission for Africa report argues that the CFTA may contribute to tackling poverty and inequality as its wide scope will facilitate structural changes in African economies.

[96] Implementation of the agreement that is not inclusive of women could result in a widening gender gap by negatively affecting women-led micro, small, or medium-sized enterprises and those who rely on informal trade (including cross border) for their livelihoods.