How would an Africa-wide free trade agreement work for SA?

African Union (AU) heads of state are this week set to sign a declaration on the biggest trade agreement since the World Trade Organisation (WTO) was established.

Presidents, prime ministers, high-level officials and private-sector stakeholders are gathered at the 10th Extraordinary Summit of Heads of State and Government of the African Union (AU) in Kigali.

President Cyril Ramaphosa, International Relations Minister Lindiwe Sisulu and Trade and Industry Minister Rob Davies are in attendance.

Gugulethu Mhlungu spoke to analyst at the Institute for Security Studies (ISS) Liezel Louw Vaudran who explained what the African Continental Free Trade Area is.

The agreement is a framework agreement, so it really is the first of six phases that were in the Abuja road map toward a single trade zone, single currency, harmonisation of tariffs etc.

Liezel Louw Vaudran, analyst at the Institute for Security Studies

It's really just a political agreement to give some impetus to this continental free trade area.

Liezel Louw Vaudran, analyst at the Institute for Security Studies

Nigeria has refused to sign the declaration, with its Chief Trade Negotiator saying it was rejecting the agreement “in the national interest of a great and diverse country”.

There is that fear in Nigeria that if there is a free trade agreement then they will be completely flooded with consumer goods services from countries like South Africa.

Liezel Louw Vaudran, analyst at the Institute for Security Studies

Vaudran explains how the agreement will benefit South Africa and the rest of the continent.

South Africa is one of the winners of this continental free trade area because we are one of the most sophisticated industrialised economies, we are one of the biggest investors on the continent, we export a lot. So I think the feeling inside South Africa is very different from what Nigerans are feeling about it.

Liezel Louw Vaudran, analyst at the Institute for Security Studies

Economists say that if there is a continental free trade area that could boost trade up to 50%. It makes just so much more sense for African countries to trade with their neighbors then to be exporting raw materials to the EU, China and the US.

Liezel Louw Vaudran, analyst at the Institute for Security Studies

Click on the link below to listen to the full interview...


This article first appeared on 702 : How would an Africa-wide free trade agreement work for SA?


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Cele should understand his role as the political head of police - ISS

Cele should understand his role as the political head of police - ISS

Bheki Cele was sworn in as Police Minister on Tuesday.

Rwandan doctor murdered in Cape Town

Rwandan doctor murdered in Cape Town

A 29-year old suspect arrested in connection with the murder of Raymond Dusabe, is due to appear in court on Wednesday.

ISS on Russian influence on ANC and could a Cyril win prevent another downgrade?

ISS on Russian influence on ANC and could a Cyril win prevent another downgrade?

Dr Jakkie Cilliers says if Cyril Ramaphosa wins the elections, he could avoid a downgrade by recalling Jacob Zuma in January.

How Zimbabwe's impeachment of Mugabe will work

How Zimbabwe's impeachment of Mugabe will work

ISS Senior Researcher Derek Matyszak breaks down the numbers and how the impeachment process will play out.

Political interference impacting negatively on crime fighting - ISS

Political interference impacting negatively on crime fighting - ISS

Stephen Grootes spoke to Dr Johan Burger senior researcher at the Institute for Security Studies (ISS).

Police performance plummets despite 50% budget increase - ISS

Police performance plummets despite 50% budget increase - ISS

Corruption Watch and ISS look at policing faces such challenges ahead of Tuesday's release of SA's annual crime stats.

SA's first ParaVolley team heading to African Championships

SA's first ParaVolley team heading to African Championships

South Africa's ParaVolley team will be travelling to Rwanda to compete in African Championships for the first time ever.

Rwanda pushes back against US second-hand clothes imports

Rwanda pushes back against US second-hand clothes imports

Ambassador Advisory's Refilwe Moloto tackles East Africa's local textile production being stifled by US imports.

Popular articles
If all goes as planned, there will be no load shedding this week - Eskom

If all goes as planned, there will be no load shedding this week - Eskom

Eskom spokesperson Khulu Phasiwe says there will be no load shedding this week as Eskom looks to get back to normal.

This video doorbell let's homeowners check on the front door from their phones

This video doorbell let's homeowners check on the front door from their phones

On Technobyte this week the traditional doorbell goes hi-tech, Uber wants to fly you and Google is launching an AI lab in Ghana.

[WATCH] Eusebius Mckaiser: I call BS on Malema's racism targeting Indians

[WATCH] Eusebius Mckaiser: I call BS on Malema's racism targeting Indians

Show host Eusebius McKaiser says EFF's leader Julius Malema's comments on Indians are grossly unacceptable and irresponsible.

[WATCH] Portuguese commentator goes wild over Christiano Ronaldo

[WATCH] Portuguese commentator goes wild over Christiano Ronaldo

Check out the latest tweets and social posts on What's Gone viral with Khabazela...

[LISTEN] State capture crippled our economy - Pravin Gordhan

[LISTEN] State capture crippled our economy - Pravin Gordhan

Minister of Public Entreprises Pravin Gordhan explains the condition of state owned enterprises and the changes he is making.

WCED objects to education dept making history compulsory

WCED objects to education dept making history compulsory

MEC of Education in the WC Debbie Schäfer says South Africa doesn't need more historians but children should be economy savvy.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Stage 1 load s​hedding has been declared nationally. The City of Cape Town has urged residents to take note of the schedules.

Man who dumped body of family dog in street demoted at top JHB law firm

Man who dumped body of family dog in street demoted at top JHB law firm

Media law guru Emma Sadleir warns employees online that there are many potential events that could bring a company into disrepute.

Don’t earn much? How to best invest tiny amounts...

Don’t earn much? How to best invest tiny amounts...

Earn peanuts, but want to start investing? You can now buy even tiny fractions of a share at a time. And it's very simple!