The Department of Trade and Industry (the dti) has stated that the Free Trade Agreements (FTAs) in Africa, particularly the Tripartite Free Trade Agreement and the envisaged Continental FTA, present an opportunity for African countries to improve intra-regional trade and diversify Africa’s current trade model of exporting raw materials and importing finished products.
The Free Trade Negotiations launched in June 2011 between the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and the East African countries would open up a market of US1.3 trillion in terms of the Gross Domestic Product (GDP). In addition, the Continental FTA that is to be established with 55 countries and a GDP of US$2.6 trillion presents an opportunity to access greater markets. On this FTA we are not only looking at trade in goods but also trade in services. Market integration, supported by infrastructure development and industrial development, will enable Africa to become competitive and benefit from other trade agreements with other partners.
Regional integration is an important aspiration of the African Union’s Agenda 2063 and remains a critical component of the continent’s efforts to ensure sustainable economic development and inclusive growth through the creation of a larger regional market and improving Africa’s integration in the global economy.
South Africa promotes a development integration approach, based on the three pillars of market integration, infrastructure development and industrial development and we remain committed to a coordinated strategy to boost intra-Africa trade and build an integrated market in Africa.
