How AfCFTA is Unlocking “Unlimited Opportunities” for South African Businesses

The African Continental Free Trade Agreement (AfCFTA) is presenting South African businesses with unprecedented opportunities to expand across Africa, according to Calvin Phume, Director of Africa Bilateral Economic Relations at South Africa’s Department of Trade, Industry, and Competition (DTIC).

Since the AfCFTA came into effect in 2019, South Africa has been actively driving its implementation to boost intra-African trade and help local businesses tap into a market of 1.4 billion people.

AfCFTA: What It Means for South African Businesses

The DTIC recently announced that South Africa, alongside other Southern African Customs Union (SACU) members, has commenced preferential trade under AfCFTA, meaning South African businesses can now benefit from reduced tariffs and enhanced market access in African countries implementing the agreement.

According to Phume, South African businesses stand to gain:

Diversification of exports
Increased production capacity
Accelerated economic growth
Boosted investment inflows
Expanded employment opportunities
Greater economic inclusion across Africa

Government Support for AfCFTA Trade

To help businesses maximize AfCFTA benefits, the DTIC’s Directorate of Africa Bilateral Economic Relations has been hosting nationwide workshops, which have received positive feedback from local exporters and entrepreneurs.

“Businesses appreciate the government’s efforts in providing information on how they can tap into the AfCFTA’s potential. Many have requested further details on available trade incentives,” Phume explained.

Challenges in AfCFTA Implementation

Despite the immense opportunities, challenges remain, particularly:

Border delays due to customs inefficiencies
Administrative bottlenecks increasing transport costs
Congestion issues that impact trade logistics
Perishable goods spoilage due to prolonged wait times

Phume emphasized that the government is actively addressing these challenges, working closely with affected countries to streamline trade processes.

The AfCFTA is Africa’s most ambitious trade agreement, and South African businesses are well-positioned to leverage its market access benefits. By expanding trade across Africa, local companies can unlock new revenue streams, investment opportunities, and sustainable growth.

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