South Africa Launches Preferential Trade under AfCFTA Guided Trade Initiative

South Africa is set to mark a significant milestone in its economic journey with the commencement of preferential trade under the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative (GTI). The initiative, along with the 13th AfCFTA Council of Ministers Meeting, is scheduled to take place in Durban, showcasing the country’s commitment to fostering intra-African trade.

The events are being convened by the South African Government and the AfCFTA Secretariat, reflecting the collaborative efforts to strengthen economic ties within the continent. The opening ceremony of the AfCFTA Council of Ministers Responsible for Trade Meeting is slated for January 30, 2024, followed by South Africa’s launch of preferential trade on January 31, 2024.

The launch ceremony will be held at the bustling port of Durban, emphasizing the strategic role of South Africa as a key player in regional trade. The Council of Ministers meeting, a crucial platform for discussions on trade policies and cooperation, will take place at the Inkosi Albert Luthuli International Convention Centre in Durban.

South Africa’s Economic Significance within AfCFTA

As a State Party to the AfCFTA Agreement since February 10, 2019, South Africa boasts a GDP of approximately $406 billion, positioning itself as one of the largest economies on the continent (World Bank, 2022). The nation’s well-established industries and experience in exports are expected to play a pivotal role in influencing trade dynamics under the AfCFTA preferences.

The primary objectives of the launch and Council of Ministers meeting include showcasing South Africa’s active participation in AfCFTA, encouraging African businesses to leverage liberalized preferences, demonstrating the utilization processes of AfCFTA, affirming governmental support for the private sector, and reinforcing the commitment of the AfCFTA Secretariat in implementing the agreement.

Historic Step towards Meaningful Intra-African Trade

The launch ceremony is poised to be a historic step, serving as a pivotal tool in facilitating meaningful trade across the African continent. South Africa’s made-in products are set to be shipped to AfCFTA State Parties participating in the GTI, including Ghana, Egypt, Rwanda, and Tunisia. The main message conveyed through this event is to illustrate that companies can trade under AfCFTA procedures, expanding their markets within a legally binding framework.

Participants in these groundbreaking events will include Mr. Wamkele Mene, the Secretary-General of the AfCFTA Secretariat, Mr. Ebrahim Patel, the Minister of Trade, Industry and Competition of South Africa, various government officials, ministers responsible for trade, members of the diplomatic corps, heads of businesses, and media representatives from across the continent.

As South Africa launches into preferential trade under the AfCFTA Guided Trade Initiative, the continent anticipates the positive impact on economic growth, job creation, and enhanced cooperation, marking a transformative moment in the quest for a united and prosperous Africa through intra-African trade.