Ermelo: The implementation of the African Continental Free Trade Agreement (AfCFTA) offers businesspeople in South Africa unlimited opportunities to grow their businesses and expand their market into the rest of the continent. This is according to the Director of Africa Bilateral Economic Relations at the Department of Trade, Industry and Competition (the dtic), Calvin Phume.
According to South African Government News Agency, Phume was speaking at a workshop hosted by the dtic in collaboration with the Mpumalanga Department of Economic Development and Tourism and Gert Sibande District Municipality in Ermelo, Mpumalanga. The workshop aimed to equip local businesspeople with the necessary information to take advantage of opportunities presented by the AfCFTA to enter the African export market and expand their businesses continent-wide.
Phume highlighted that the African Continental Free Trade Agreement has created a single market comprising more than 1.3 billion people. This development provides South African companies with new market access opportunities to key markets across the African continent beyond the Southern Africa Development Community.
He further explained that the main objective of the agreement is to eliminate all barriers to trade in Africa, facilitating the free flow of goods and services. This initiative is designed to enable businesspeople to contribute to increasing intra-African trade and investment. Through the Agenda 2063: The Africa We Want, African leaders have set a goal to increase intra-Africa trade from the current 17% to 81% by 2035.
Phume emphasized that the agreement focuses on harmonization of trade regulation, value-addition, economic inclusion, industrialization, and beneficiation. These elements open numerous opportunities for companies to increase production and create jobs for women, youth, and people with disabilities, thereby servicing the large market created by the AfCFTA.
He encouraged businesspeople to conduct thorough research and study of the markets they intend to enter, considering the diverse dynamics related to business environment and culture, infrastructure, logistical requirements, as well as norms and standards across the 55 African countries. Phume also advised partnering with local companies to navigate regulatory challenges, transforming obstacles into profitable opportunities.