JOHANNESBURG, Feb. 17 (Xinhua) -- The African Continental Free Trade Agreement (AfCFTA) offers South African businesses "unlimited opportunities" to expand across the continent, a senior trade official said on Monday, emphasizing the country's commitment to boosting trade under the AfCFTA and helping local businesses tap into its vast potential.
Since the AfCFTA came into effect in 2019, South Africa's Department of Trade, Industry, and Competition (DTIC) has been actively driving its implementation, Calvin Phume, director of Africa Bilateral Economic Relations at the DTIC, told Xinhua in an interview.
On Monday, the department announced that, alongside other members of the Southern African Customs Union, it has "commenced preferential trade with countries" that have officially implemented their tariff commitments under the agreement.
Phume highlighted the "unlimited opportunities" available for South African businesses through the historic trade pact. To help them unlock AfCFTA's potential, the DTIC's Directorate of Africa Bilateral Economic Relations has been conducting workshops nationwide. These workshops have garnered positive feedback from businesses, signaling a growing interest in trade expansion driven by the AfCFTA.
"Business people expressed their appreciation for the government's efforts in sharing the benefits of implementing the AfCFTA. They recognized that this initiative would provide South African exporters with enhanced market access to key economies across the African continent, thereby unlocking new growth opportunities. Companies also sought further information on available incentives from the department," said the official.
Phume went on to emphasize the numerous benefits businesses can derive from the AfCFTA. "The benefits of trading under the AfCFTA will lead to diversification of exports, increased productive capacity, acceleration of growth, increased investment, increased employment opportunities and incomes, and most importantly, broaden economic inclusion both in South Africa and the rest of the continent," he said.
When asked about the challenges businesses face with AfCFTA implementation, Phume pointed to delays at border posts due to customs inefficiencies, congestion, and administrative bottlenecks. These delays prolong wait times, increase transport costs, and can lead to the spoilage of perishable goods.
However, Phume noted that work is underway to resolve these issues. "We work closely with the affected countries to resolve any challenges the private sector faces when exporting to their markets," he added.
The AfCFTA is aimed at significantly increasing intra-African trade by creating a single market encompassing more than 1.4 billion people across the continent.
