The implementation of the African Continental Free Trade Agreement (AfCFTA) offers businesspeople in South Africa unlimited opportunities to grow their businesses and expand their market into the rest of the continent.
This is according to the Director of Africa Bilateral Economic Relations at the Department of Trade, Industry and Competition (the dtic), Calvin Phume.
Phume was speaking at a workshop that was hosted by the dtic in partnership with the Mpumalanga Department of Economic Development and Tourism and Gert Sibande District Municipality in Ermelo, Mpumalanga, recently.
The purpose of the workshop was to equip the Mpumalanga businesspeople with information that will enable them to take advantage of opportunities presented by the AfCFTA in order to enter the African export market and expand their businesses into the continent.
“The African Continental Free Trade Agreement has created a single market comprising more than 1.3 billion people that businesspeople across the continent can take advantage of.
“This will provide South African companies with new market access opportunities to key markets in the African continent beyond the Southern Africa Development Community,” he said.
Phume said the main objective of the agreement was to eliminate all barriers to trade in Africa to enable the free flow of goods and services across the continent.
“This is meant to allow businesspeople like yourselves to contribute in increasing intra-African trade and investment. Through the Agenda 2063: The Africa We Want, African leaders have set themselves an ambition of increasing intra-Africa trade from the current 17% to 81% by 2035,” Phume said.
He stressed that the agreement emphasises harmonisation of trade regulation in the continent, value-addition, economic inclusion, industrialisation and beneficiation.
“These open up a myriad of opportunities for your companies to increase production and create jobs for women, youth and people with disabilities in order to service the huge market that has been created by the AfCFTA.
“This is your chance to grow your businesses by tapping into the expansive African market, increase your exports, increase your revenue, and contribute positively in growing the intra-African trade and investment,” he said.
Phume advised businesspeople to set themselves realistic ambitions when they venture into the rest of Africa, as the imposing size of the market created by the free trade agreement offers huge benefits and rewards, but could also be challenging and daunting for their small businesses.
“It is important that you conduct a thorough research and study of the market you intend entering because the fact that there are 55 countries means that each market has its own dynamics related to business environment and culture, infrastructure, logistical requirements, as well as norms and standards.
“It is always advisable to partner with a local company that can assist you to navigate the regulatory challenges and other hurdles. This will enable you to transform obstacles into opportunities that will be profitable and rewarding to your business,” advised Phume. – SAnews.gov.za
