Opportunity Issue 96

TRADE & INVESTMENT
AfCFTA
LAUNCHES TRADE
The African Continental Free Trade Area (AfCFTA) agreement commenced on 1 January 2021.
This development is good news for the continent because it is likely to boost intra-African trade.
The AfCFTA journey has been a long one since the signing
of the Treaty in 1991 and the establishment of the African
Economic Community in March 2018 in Kigali, Rwanda,
which was followed by the signing of the agreement
by 44 countries. To date, 54 countries have signed the
agreement, except for Eritrea. Of these countries, 34 have ratified
the legal instrument on AfCFTA.
The Steel and Engineering Industries Federation of Southern
Africa (SEIFSA) Chief Economist Chifipa Mhango says that most
African economies have grown at rates of 5% on average over
the last 10 years, but they remain impoverished in terms of the
World Bank classification, with the majority of their populations
living below the poverty line. He reveals that it is important for
these countries to have an integrated approach to dealing with
challenges if they are to grow economically.
“Africa has a wealth of mineral deposits and vast fertile land
for agricultural production. However, the continent’s trade
composition is dominated by exports of unbeneficiated raw
materials. For this situation to change, Africa needs to develop
its own path towards industrialisation and promote trade among
its own countries,” he states.
Mhango contends that the South African Metals and
Engineering (M&E) sector has enjoyed a positive trade balance
on the continent, with the latest figures suggesting a net trade
balance of R22-billion in the first quarter of 2020 (pre-Covid-19
lockdown). The most dominant products were plastic and
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While information
security
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