Somali President Hassan Sheikh Mohamud has signed the African Continental Free Trade Area (AfCFTA) Agreement into law after its ratification by the federal parliament, paving the way for Somalia to join Africa's single market.

The presidential assent allows Somalia to deposit its instrument of ratification with the African Union Commission, the final step required to become a state party to the continent-wide trade agreement, according to Somalia's Ministry of Commerce and Industry.

Established by the African Union, the AfCFTA seeks to reduce trade barriers among African countries and create a single market of more than 1.4 billion people.

It is the world's largest free trade area by the number of participating countries.

The government says membership will give Somali businesses preferential access to African markets under the agreement's rules.

It also expects the deal to boost exports, attract investment, support industrial development and economic diversification, and create jobs, although the extent of those gains will depend on implementation and broader economic conditions.

The African Union established the African Continental Free Trade Area (AfCFTA) to unite 54 nations, connect 1.4 billion people, and form a $3.4 trillion economic single market. Trading officially commenced on January 1, 2021, with its headquarters managed by the Secretariat in Accra, Ghana.

AfCFTA) faces significant setbacks including slow implementation, infrastructure deficits, and overlapping regional memberships. While the agreement aims to connect 1.3 billion people, actual cross-border trading remains low and challenging.