On 12 October the South African Revenue Service (SARS) said that South Africa’s commitment to implementing the agreement was key to its success and SARS was the implementing agency of preferential trade agreements. The execution of the AfCFTA will have an impact on SARS legislation, systems, Customs operations and training of officers.
SARS will be ready to implement the agreement before the revised due date. The date of entry into force was originally July 2020, but due to COVID-19, it was postponed to January 2021.
Additional information
AFRICAN CONTINENTAL FREE TRADE AGREEMENT (AFCFTA)
The African Continental Free Trade Agreement (AfCFTA) was conceptualised in 2012 to enhance trade integration on the continent. The 18th Ordinary Session of the Assembly of Heads of State and Government of the AU, which took place in Ethiopia in 2012 endorsed an action plan to boost Intra-African Trade (BIAT), and thus agreed on a way forward to establish the AfCFTA.
The Agreement went into force on 30 May 2019 and, so far, 30 countries on the continent have ratified the Agreement.
As a member of the African Union (AU), South Africa endorsed the AfCFTA negotiations when they were launched during the 24th AU Assembly in June 2015 in South Africa. The negotiations were led by the Department of Trade, Industry, and Competition (DTIC) with SARS as a key member of the negotiating team.
Objectives of the Agreement
- Initiate a single market, deepening the economic integration of the continent.
- Establish a liberalised market through multiple rounds of negotiations.
- Promote the movement of capital and people, facilitating investment.
- Move towards the establishment of a future continental customs union.
- Achieve sustainable and inclusive socio-economic development, gender equality and structural transformations within member states.
- Enhance competitiveness of member states within Africa and in the global market.
- Encourage industrial development through diversification and regional value chain development, agricultural development and food security.
- Resolve challenges of multiple and overlapping memberships.
Benefits of free trade area
Once completed, the free trade area (FTA), which is of substantial economic interest to South Africa and the African continent, will provide a market of over 1 billion people with a gross domestic product (GDP) of over US$2.6 trillion.
Implementation
South Africa’s commitment to implementing the agreement is key to its success and SARS is the implementing agency of preferential trade agreements. The execution of this Agreement will have an impact on SARS legislation, systems, Customs operations and training of officers.
SARS will be ready to implement the agreement before the revised due date. The date of entry into force was originally July 2020, but due to COVID-19, it was postponed to January 2021.
For more information on the AfCFTA simply send an email to afcfta@sars.gov.za
More informationt is accessible at:
Story by: Riaan de Lange