Trade, Industry and Competition Acting Director-General, Malebo Thompson, says the successful implementation of the African Continental Free Trade Area (AfCFTA) is expected to accelerate growth and increase investment in Africa.
“AfCFTA brings us a step closer to realising the historic vision of an integrated market in Africa.
“The coordination of efforts, and inclusion of AfCFTA across all of government and relevant stakeholders will ensure that AfCFTA opportunities benefit the South African private sector,” Thompson said.
Taking part in a masterclass organised by the Department of Trade, Industry and Competition (dtic) and the National School of Government on Tuesday on the implementation of the AfCFTA, Thompson said trade integration and liberation should be accompanied by programmes to support African industrialisation and regional value chains.
Thompson said dtic has embarked on provincial outreach programmes and awareness workshops in collaboration with provincial governments.
“The dtic is also developing an AfCFTA implementation plan, including the establishment of a national implementation committee and a targeted strategy for the implementation of AfCFTA,” she said.
Prudence Sebahizi, the Director for Institutional Matters and Programmes Coordination at the AfCFTA Secretariat, said the AfCFTA create a single continental market with free movement of goods, services and investments.
“The objective of AfCFTA is to promote and attain sustainable and inclusive development, gender equality and structural transformation of [member States],” Sebahizi said.
The AfCFTA, Sebahizi said, will promote industrial development and regional value chain development, agricultural development and food security.
“The objective of the AfCFTA agreement is to create a single continental market for goods and services,” Sebahizi said.
The AfCFTA presents South Africa and Africa as a whole with unparalleled benefits and opportunities.
The AfCFTA seeks to establish a large, single continental market, encompassing a population of approximately 1.3 billion people with a combined Gross Domestic Product (GDP) of approximately US $3.4 trillion.
According to World Bank projections, by implementing the trade agreement, Africans will have an opportunity to lift 100 million people out of poverty, 60 million Africans out of abject poverty and the rest out of moderate poverty.
The AfCFTA agreement was mediated by the African Union (AU) and signed by 44 out of 55 member States in 2018.
The agreement seeks to eliminate trade barriers and boost intra-Africa trade. In particular, it is to advance trade in value-added production across all service sectors of the African economy.
The AfCFTA will contribute to establishing regional value chains in Africa, enabling investment and job creation.
The practical implementation of the AfCFTA has the potential to foster industrialisation, job creation and investment, thus enhancing the competitiveness of Africa in the medium to long term.