SOUTH AFRICA LAUNCHES PREFERENTIAL TRADE UNDER AFCFTA, MARKING HISTORIC MILESTONE

January 29, 2024 – South Africa is set to launch the initiation of preferential trade under the African Continental Free Trade Agreement (AfCFTA) on Wednesday, January 31, 2024, at Pier 1 in Durban. President Cyril Ramaphosa and the Minister of Trade, Industry and Competition, Ebrahim Patel, will officiate the event, which marks a significant step in expanding trade relations among African nations.

The launch follows the recent publication of the terms, on Friday, January 26, in the Government Gazette, outlining South Africa’s participation in the new free trade agreement. Twelve countries, including South Africa, have finalized legal modalities to enable trade in thousands of product lines, ranging from food and beverages to steel products, taxis, pharmaceuticals, personal care products, chemicals, and household goods.

The ceremony on Wednesday will feature a display of products earmarked for export and the symbolic loading of the first container of goods onto a ship destined for markets covered by the AfCFTA. The event is scheduled to take place at Pier 1 at the Port of Durban from 9-11 am, with attendees including South African Cabinet members, the Secretary General of the AfCFTA, Wamkele Mene, and Trade Ministers from the Southern African Customs Union and other African countries.

In conjunction with the trade launch, South Africa will also host the meeting of the Council of African Trade Ministers from January 30-31 at the Durban International Convention Centre (ICC). Approximately 25 trade ministers and officials from about 40 countries are expected to attend, discussing further measures to strengthen the AfCFTA.

The AfCFTA, a high-ambition trade agreement, aims to bring together all 55 member states of the African Union, covering a market of more than 1.3 billion people. The comprehensive scope includes critical areas of Africa’s economy, such as digital trade, investment, trade in goods and services, among others. By eliminating barriers to trade in Africa, the AfCFTA seeks to boost intra-Africa trade, particularly in value-added production and trade across all service sectors of Africa’s economy.

As a State Party to the AfCFTA Agreement, South Africa, with a GDP of approximately $406 billion (World Bank, 2022), represents one of the larger economies on the continent. The successful implementation of the AfCFTA is expected to enhance intra-Africa trade, accelerate growth, and promote intra-Africa investments, providing South African exporters with new market access opportunities. Simultaneously, it opens up growth opportunities for the South African economy, offering market access to other African countries beyond the Southern Africa Development Community.