THE COMPATIBILITY OFTHE AFRICAN CONTINENTAL FREE TRADE AREA AGREEMENT WITH ISLAMIC PRINCIPLES OF INTERNATIONALTRADE

Abstract

This study examines the compatibility of the African Continental Free Trade Area (AFCFTA) Agreement with Islamic principles of international trade. The research question is: To what extent is the AfCFTA Agreement compatible with Islamic principles of international trade? The study's objectives are to examine the AfCFTA Agreement's key provisions, analyse Islamic principles of international trade, and assess their compatibility. Aqualitative research approach is used, analysing primary and secondary sources. The scope is limited to the AfCFTA Agreement and Islamic principles of international trade. The findings reveal areas of convergence and divergence, particularly regarding interest-based financing and dispute settlement mechanisms. The study recommends incorporating Islamic trade finance instruments and dispute settlement mechanisms into the AfCFTA framework. The findings have significant implications for Muslim traders and policymakers, highlighting the need for compatibility between the AfCFTA Agreement and Islamic principles of international trade to facilitate inclusive economic growth and development in Africa.