By Lehlohonolo Lehana.
Deputy President Paul Mashatile hailed the establishment of the African Continental Free Trade Area (AfCTA) adding that it will “become a game changer to the continent’s growth trajectory.”
Mashatile was speaking at the African Continental Free Trade Area (AfCFTA) business forum in Cape Town, where the city is playing host to Africa’s biggest business event to promote private sector participation in the acceleration of the implementation of the AfCFTA.
The three-day forum was attended by various stakeholders including Former Nigerian President and AfCTA champion Mahammadou Issoufou, Dr. Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission, Minister Ahmed Ali Bazi who represented the Chairperson of the African Union as well as President Azali Assoumani, President of the Union of Comoros.
AfCTA is touted to be the world’s largest free trade area and was established in March 2018 as one of the flagship projects of Agenda 2063.
It boasts 54 countries of the African Union (AU) as signatories with up to and eight Regional Economic Communities.
According to the Deputy President, “there exists continental-wide consensus on the need for Africa to reduce structural and regulatory barriers to market entry and to invest in the necessary infrastructure to facilitate intra-African and global trade – more so road and maritime infrastructure. At present, the quality of much of the continent’s maritime, road and railway infrastructure is less than satisfactory.”Without this infrastructure, rail and maritime trade cannot realise their full potential. Road transport is therefore an indispensable part of daily African economic activity and critical to facilitating cross-border trade and regional integration.
“Another impediment we must confront are inefficiencies at border posts, many official and unofficial inspection points along transport corridors and low road densities.”
Despite the obstacles, Mashatile believes the continent is moving in the right direction towards a “one African market”.
Mashatile believes that Africa is in a process of creating the world’s largest single free trade area, with 1.3 billion people and a gross domestic product of $3.4 trillion.
“This represents an important step forward, which must culminate in the ratification of the AfCFTA instrument by all African Union Member States. The implementation of the AfCFTA will improve intra-African trade, the continent’s share and participation in global trade, stimulate and improve her economy as well as contribute to lifting millions of people out of poverty.”
The continent has embarked on the gradual elimination of tariffs on 90% of goods, and the reduction of barriers to trade in services aimed at increasing Africa’s income by $450 billion by 2035.
Mashatile believes this will also help to lift between 50 to 100 million people out of poverty.
“This would represent a significant improvement in the economy and the quality of life of the people.”
He also cited the Secretary General of the United Nations Conference on Trade and Development, Rebeca Grynspan, who pointed out that Africa boasts $21.9 billion of untapped export potential, of which an additional $9.2 billion can be realised through partial tariff liberalisation under the AfCFTA over the next five years.
“I am informed that during the last three days [of the forum], you have had extensive discussions, which identified more impediments to African trade and the solutions necessary for implementing the AfCFTA.
“The solutions you have identified will hopefully take us a step closer to the actual investment projects that give renewed meaning to the objectives of the AfCFTA, “Mashatile said.
He said gatherings such as the forum ought to serve as launch pads for long-lasting relations amongst the African business community in pursuit of practical programmes of economic action.
“The AfCFTA will become a ‘game changer’ to the continent’s growth trajectory, as some conference participants have suggested, if you, the continent’s business community – together with governments and the working people of our continent – act in unison, refusing to drop the ball.”
Mashatile also has expressed South Africa’s concern about the conflict that broke out in Sudan over the weekend between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF).
“We are particularly concerned about the rising numbers of civilian loss of life, the destruction of private and public infrastructure, and the humanitarian disaster that is likely to arise with the entrapment of civilians in their houses with no access to food and other basic necessities.
“Equally concerning is the impact of the conflict on Sudan’s neighbours,” he said.
He said South Africa fully supports the decision of the African Union Peace and Security Council at its 1 149th meeting, held in Addis Ababa, Ethiopia, on 16 April 2023, on the situation in Sudan.
Mashatile commended the efforts of the Intergovernmental Authority on Development (IGAD) to resolve the conflict.
He also took the time to wish Presidents Salva Kiir of South Sudan, William Ruto of Kenya and Ismail Omar Guelleh of Djibouti well in their efforts to secure a ceasefire.
Their efforts are also meant to immediately begin the implementation of the 5 December 2022 framework agreement aimed at returning Sudan to civilian rule, to which the belligerents have committed themselves.