Cape Town: South Africa is poised to capitalise on the vast opportunities presented by the African Continental Free Trade Area (AfCFTA), the Portfolio Committee on Agriculture heard this week. While many African nations are still navigating the complexities of implementing the landmark agreement, South Africa has completed its internal preparations and is ready to trade.
The AfCFTA, a monumental agreement uniting 55 African Union (AU) member states, aims to create a single, continental market, fostering intra-African trade and economic integration. Despite the slow progress in some countries, South Africa has already taken decisive steps, participating in the pilot Guided Trade Initiative and dispatching its first shipments to Ghana and Kenya in 2024.
The Department of Agriculture, briefing the committee, emphasized the agreement’s ambitious goals, including the progressive elimination of trade barriers and the establishment of the world’s largest free trade area. With 48 countries having ratified the agreement and 49 having submitted tariff offers, momentum is building towards full implementation.
“South Africa’s participation in the AfCFTA is welcomed, as it will allow us to diversify our agricultural export basket and increase the export of value-added agricultural products,” stated Ms Dina Pule, Chairperson of the Portfolio Committee on Agriculture.
The department outlined its extensive efforts to prepare the South African agricultural sector, including industry workshops and participation in the AfCFTA National Implementation Committee. The goal is to ensure a smooth transition and maximize the benefits for South African farmers and businesses.
In a separate presentation, the committee received an update on the Agriculture and Agro-processing Master Plan, a sectoral economic framework designed to drive inclusive growth and market development. Dr Simphiwe Ngqangweni, CEO of the National Agricultural Marketing Council, highlighted the plan’s role in coordinating efforts and achieving national development goals.
However, the committee also raised concerns about the challenges facing small agro-processors and the low participation of black chicken farmers. They urged the department to explore strategies for promoting goat farming, recognizing its potential to supply markets in the Middle East and across Africa.
Despite these challenges, the overarching message was one of optimism. South Africa is well-positioned to leverage the AfCFTA, opening new markets and driving economic growth within the agricultural sector. The government’s proactive approach and ongoing dialogue with industry stakeholders are crucial to ensuring the success of this transformative agreement.
