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Africa’s New Trade Map: COMESA, TFTA, AfCFTA and GAFTA
In my previous article, I talked about the opportunities Egypt offers beyond its domestic market of approximately 120 million people.
Today, I would like to take the subject a little further.
Because understanding Egypt’s economic strength requires more than simply looking at factories, ports and infrastructure.
We also need to look at the trade map.
One of Egypt’s strategic advantages is its ability to access very large markets through various regional and international trade agreements.
Egypt’s official investment authority, GAFI, states that these different trade agreements provide the potential to reach approximately 1.5 billion consumers. (GAFI)
So, which agreements lie behind this enormous market?
The most important ones include COMESA, TFTA, AfCFTA and GAFTA.
Although their names may sound similar, each has a different scope and purpose.
COMESA: One of Egypt’s First Major Gateways to Africa
COMESA stands for the Common Market for Eastern and Southern Africa.
Egypt joined this organization in 1998.
The main objective of COMESA is to develop trade among member countries, reduce customs and trade barriers, and gradually create a more integrated regional market.
For Egypt, one of the important advantages of COMESA is that products meeting the agreement’s rules and rules of origin can benefit from customs advantages when traded among member countries. (GAFI)
The important point here is this:
For a company manufacturing in Egypt, COMESA is not simply a trade agreement.
It is a gateway to Eastern and Southern Africa.
Therefore, an industrialist investing in Egypt should consider not only the Egyptian market, but also the COMESA region as part of the investment strategy.
TFTA: A Larger African Trading Area
The second important framework is TFTA.
TFTA is the Tripartite Free Trade Area established by COMESA, the East African Community (EAC), and the Southern African Development Community (SADC).
The agreement entered into force on July 25, 2024. Egypt was among the countries that ratified the agreement.
Together, the three regional economic communities cover 29 countries, more than half of the members of the African Union, and a population of approximately 800 million. (comesa.int)
For this reason, it would be misleading to view TFTA simply as another new trade agreement.
TFTA has three main pillars:
Trade and market integration…
The development of infrastructure and connectivity…
Industrialization and increasing production capacity. (comesa.int)
I believe the third point is particularly important.
Because the issue is not simply about making it easier for goods to cross borders.
It is about connecting production chains with one another.
The ability of a product manufactured in Egypt to reach East Africa, Southern Africa, or other markets in these regions more easily could strengthen Egypt’s ambition to become a regional production hub.
However, there is an important detail to note here: the entry into force of TFTA does not mean that all elements of trade under the agreement are already fully operational.
COMESA states that trade under TFTA is expected to begin in 2026 and that implementation mechanisms are still being developed. (comesa.int)
In other words, there is still an important process ahead.
And this process should be closely monitored from Egypt’s perspective.
AfCFTA: Africa’s Common Market
There is an even broader structure above TFTA:
AfCFTA – the African Continental Free Trade Area.
This is one of the most important instruments for achieving Africa’s goal of creating a continent-wide common trading area.
Egypt was among the countries that ratified the AfCFTA agreement in 2019.
The agreement entered into force on May 30, 2019. (African Union)
The objective of AfCFTA is not simply to reduce tariffs.
It aims to develop trade in goods and services, support investment, increase intra-African trade, and enable African countries to build stronger production and supply chains with one another.
For Egypt, this has enormous significance.
Because Egypt is not facing merely a handful of African markets, but a much broader economic space that, over time, aims to encompass the entire continent.
For this reason, it is highly important for Egypt to strengthen its efforts to benefit more from the opportunities offered by AfCFTA and increase its exports to Africa.
GAFTA: A Gateway to the Arab World
Alongside Africa, Egypt has another major advantage: the Arab world.
This is where GAFTA – the Greater Arab Free Trade Area – comes into the picture.
The main objective of GAFTA is to facilitate trade among Arab countries and reduce trade barriers.
For Egypt, the importance of GAFTA is further reinforced by the country’s strong historical and economic relations with the Arab world. (GAFI)
This creates another opportunity for companies manufacturing in Egypt:
Produce in Egypt, reach the Arab market.
Especially in sectors such as food, agriculture, construction materials, packaging, machinery, textiles and consumer goods, there is considerable potential to make greater use of this connection.
Four Agreements, One Strategic Advantage
Now let us put these four frameworks side by side:
COMESA → Eastern and Southern Africa
TFTA → Broader trade integration among COMESA + EAC + SADC
AfCFTA → A common trading area targeting the entire African continent
GAFTA → The Arab world
When we add Egypt’s existing trade links with Europe and its agreements with various countries, including Türkiye, the market available to an investor manufacturing in Egypt becomes truly extensive.
This is why, in my view, it is no longer enough to describe Egypt’s investment story simply as a “120-million-person market.”
The real meaning of investing in Egypt lies in the possibility of reaching much broader regional markets when the right production model is established.
What Does This Mean for Turkish Investors?
This is where I see a very important opportunity for Türkiye.
Türkiye’s manufacturing experience, engineering capabilities, machinery industry and export culture can be combined with Egypt’s geographical position and trade connections.
The potential model is quite clear:
Technology and manufacturing expertise from Türkiye…
Production in Egypt…
Markets in Africa and the Arab world…
Export opportunities in Europe…
This model would not only increase trade between the two countries.
It could create new investments.
Generate new employment opportunities.
Develop supply chains.
And create a genuine regional production partnership between Türkiye and Egypt.
The Real Issue Is Not Signing the Agreement
However, there is an important point that needs to be emphasized.
The existence of a trade agreement alone is not enough.
The real question is how effectively the agreement can be used in practice.
Will customs procedures become faster?
Will rules of origin be easy for investors to understand and implement?
Will logistics costs be competitive?
Will border crossings become easier?
Will financing and payment systems be improved?
And most importantly, will the private sector be sufficiently informed about the opportunities offered by these agreements?
In my view, this is one of the most important issues the Egyptian government should focus on in the coming period.
Because a trade agreement is a door; it is producers and investors who will walk through that door.
Egypt’s task is not only to open these doors, but also to make it easier for investors to pass through them.
What Does the Map Tell Us?
When I look at all these agreements together today, I see a very different economic model emerging for Egypt.
Egypt can be a country that produces primarily for its own domestic market.
Or…
It can become a regional hub producing for Africa, the Arab world and Europe.
In my opinion, this is the real choice facing Egypt.
And the steps taken in recent years indicate a move toward the second option.
The opportunity ahead of Egypt is enormous.
But so is the responsibility.
Improving production quality…
Reducing costs…
Strengthening logistics…
Developing a skilled workforce…
And providing investors with a predictable business environment…
If all of these elements are achieved, trade agreements will cease to be documents that remain on paper and will turn into real economic value.
Perhaps the best way to understand Egypt’s future is no longer simply to look at Cairo.
But to look at where the roads leading out of Cairo go.
Because the future of a product manufactured in Egypt is no longer limited to Egypt.
It may be in Africa, the Arab world and Europe.
In the next chapter, I will focus on the most important question behind this entire map:
Who should produce what in Egypt, and how?
Because knowing the agreements is important.
But what really matters is how we turn the opportunities offered by these agreements into reality through the right investments.
See you in the next chapter.
