South Africa: Start of exports of products under the AfCFTA

In a historic move this week, South Africa achieved a significant milestone by executing its inaugural exports under the African Continental Free Trade Area (AfCFTA). These proudly South African products, destined for fellow Africans, enjoy exemptions from customs duties, streamlining trade processes.

President Cyril Ramaphosa, inaugurating this development from Durban’s port, symbolically cut the ribbon on a container filled with grinding balls bound for industrial use in Ghana, signaling the commencement of a potentially transformative commercial route between the two nations.

The South African Minister of Trade and Industry emphasizes that this venture goes beyond the exchange of finished goods, showcasing a dynamic where African nations trade tools crucial for their industrialization.

A promising trade relationship is also emerging with Kenya, set to dispatch consignments of tea and coffee to South Africa.

Despite this positive momentum, President Ramaphosa expressed concern that intra-African exports currently constitute only 16% of total trade, a stark contrast to the 63% figure observed in Europe.

While South Africa joins the ranks of the 12 actively participating countries in this preferential trade zone, including Tunisia, Cameroon, and Egypt, there is untapped potential.

Presently, only a fraction of the 47 countries that ratified the free-trade agreement are actively involved.

With South Africa leading the charge with its groundbreaking export, there is optimism that the entire sub-region will soon follow suit.

Eswatini has already pledged to export its sugar in the coming weeks.

Despite the official launch of AfCFTA on January 1, 2021, some countries, South Africa included, initially faced hurdles in aligning with the agreement.

Now firmly part of the select group benefiting from AfCFTA, South Africa’s success serves as an inspiring example, urging the broader African continent to embrace and fully capitalize on the opportunities presented by this transformative trade agreement.

Read also: Africa: The inaugural 2024 conference of road and transport stakeholders in Africa is being held from 17 to 21 April

Moussa KAFOU