Rules of origin (ROO) determine which goods qualify for preferential tariff treatment under AfCFTA. The AfCFTA Annex 2 ROO Protocol specifies that goods must meet a 35 percent African value-added threshold, defined as the ex-factory price minus the value of non-originating materials divided by the ex-factory price. This means a manufacturer in Nigeria using imported steel to produce machinery components must ensure that African inputs (labour, local raw materials, overheads) represent at least 35 percent of the final product's value before it qualifies for AfCFTA tariff preferences.
Implementation Challenges
African manufacturers importing Asian components face difficulties meeting the threshold when raw material costs are high relative to local labour and overheads. The African Continental Qualifications Framework working group is developing sector-specific ROO schedules that reflect production realities in textiles, automotive, electronics, and pharmaceuticals. Exporters and importers calculating AfCFTA eligibility for their products can access ROO guidance, tariff schedules, and trade facilitation experts on intra-africa.com.
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