Business
Larger Africa free trade deal nearing reality
South Africa is to establish a free trade zone between its southern African neighbors and its counterparts in the eastern and western regions of the continent.
In an interview with reporters yesterday, South Africa’s Deputy Trade and Industry Minister Mzwandile Masina said his country was close to finalizing key trade agreements with the rest of the continent, which would be realized within the next 5 years.
Masina said negotiations with the rest of the continent were at an advanced stage, and that the agreements could be realized before the 2063 African Union (AU) deadline for free trade in the continent.
“Next week we will be hosting the AU summit. Among the discussions on the economy would be a continental free trade area that we will be launching, which is basically going to be a continental body which we are going to use as a trading bloc among Africans,” Masina said.
“This trading bloc consists of 26 countries which comprise more than half of the total population of the continent.”
South Africa had long embraced the idea of a free trade regime within the continent that would be worth billions of dollars among the continent’s economic powerhouses of Nigeria, Egypt, Kenya and the Southern African Development Community but its intentions have been clouded by regional politics and fears that current trades were skewed highly in favor of it.
Benefit for all
But Masina said the envisaged trade regime would see countries that are lagging behind economically being able to benefit from the total overhaul of the economic prospects.
“That is why now we are having to talk about the free trade area which will involve the entire continent of Africa so that we can speak with one voice with Europe, with other BRICS member countries and any other important trading blocs,” Masina said.
“And obviously the AU summit will talk to half of what we are trying to do. One of the missions of the AU is to achieve a home for a united prosperous continent by 2063, issues like how do we ensure that we can create common markets and I am saying that the continental free trade area is going to be a free trade area for the continent but also to engage the rest of the world about how we facilitate the movement of goods.”
