The African Continental Free Trade Area (AfCFTA) could be a game-changer for South Africa’s provinces, opening up a world of unprecedented advantages and prospects.With the potential to exponentially expand market access to more than 1.3 billion consumers over the continent, it could significantly increase trade, says Trudi Hartzenberg of tralac.According to the Gauteng Growth and Development Agency (GGDA), Gauteng exports to Africa currently account for around 31.1% of all Gauteng exports. By rank, it is the second-largest destination for Gauteng exports after Asia. Additionally, Gauteng imports from Africa account for at least 8.85% of all the province’s imports. Africa, however, is still the smallest import market for Gauteng.The top export commodities for the province are capital equipment, mineral fuels, vehicles, electrical machinery and plastics. GGDA statistics indicate strong growth in products such as tobacco, ships and f loating structures, as well as mineral ores.According to a GGDA spokesman, the benefit of the AfCFTA cannot be disputed, as the biggest constraint to intra-Africa trade is still the high cost. The biggest gain would come from the reduction in non-tariff barriers.The agency says AfCFTA has the potential to lift 30 million people out of extreme poverty, but achieving its full potential will depend on policy reforms and trade facilitation measures. Successful implementation will be key, says the spokesman, since it will require careful monitoring of the impact on all aspects of trade.The GGDA has developed an AfCFTA Gauteng roadmap to assist Gauteng companies to increase trade and expand operations into the rest of the continent.According to Hartzenberg, unlocking the possibilities and opportunities will require constant monitoring of developments around the AfCFTA and preparing now to meet demand as and when it unfolds.
