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Fragmented rules can turn small oversights into significant setbacks. Data privacy conflicts arise when HRIS and payroll data do not align with national laws such as Nigeria’s Data Protection Act, South Africa’s POPIA, or Kenya’s Data Protection Act, and misalignment can bring fines or forced remediation. Trade benefits may also be lost through errors in Rules of Origin documentation or tariff misclassification, erasing expected savings and stalling projects. Operational disruption is another concern; cross- border payment frictions and currency volatility still require contingency planning and clearly documented workflows. Building full in-house compliance capacity across every jurisdiction is heavy and slow, so
accurate tariff schedules and correctly applied Rules of Origin; coverage should be broad by 2026, although some technical lists may still change. The e-Tariff Book remains the most reliable reference point for confirming the rate and the Rule of Origin for each lane before pricing or quoting. Customs documentation is another point of friction. Preferences depend on the right certificate of origin; electronic certificates and refreshed portals cut delays, yet they also require process updates for suppliers and logistics partners. Services commitments continue to expand, with finance, communications, transport, tourism, and business services moving under AfCFTA’s services protocol. This matters for outsourcing deals, contractor engagement, and the movement of professionals. Tiny gaps can derail plans; a missed origin detail, an outdated tariff code, or incomplete paperwork can shift pricing, delay timelines, or cost eligibility.
Why Employment Still Stays National AfCFTA is a trade pact, not a labour code. It does not harmonise employment law or grant continent-wide freedom to work. Contracts, dismissals, leave, and bargaining remain national, as do work permits, which follow each state’s immigration regime. The African Union’s instrument on free movement of persons has limited ratification and is not yet in force. For 2026 planning, assume that employment and immigration compliance will remain country-by-country, even as trade rules knit closer together.
Fragmented rules can turn small oversights into significant setbacks.
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GLOBAL PAYROLL MAGAZINE ISSUE 17
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