President Cyril Ramaphosa says Africa is now ready for significant economic integration through a “Made in Africa” trading label, signalling that all countries on the continent are open for business.
He was keynote speaker at the opening of the seven-day Intra-African Trade Fair 2021 (IATF) in Durban on Monday.
Ramaphosa said he hoped all countries on the continent will soon sign the African Continental Free Trade Area (AfCFTA) agreement — an AU initiative that creates a single continental market for goods and services, with free movement of business leaders and investments across 55 countries on the continent.
AfCFTA aspires to connect all the regions of Africa to deepen economic integration and boost intra-African trade and investment, creating a market of 1.3-billion people with a combined GDP of $3.4-trillion (R49.6-trillion).
“We need as Africans to resist the temptation to simply become transient shipment centres adding only limited industrial value to the products that are traded on our continent,” Ramaphosa said.
“It is our expectation that this trade fair will further cement its position as Africa’s premier trade platform where Africa manufacturers and producers can promote and sell more goods labelled ‘Made in Africa’.”
He said this was critical if the continent hopes to change the distorted trade relationships that it has with the rest of the world.
He said the export of African raw materials and import of finished goods made with those materials has to end.
“The wealth that resides in the US, that dazzles so many people, the wealth that resides in Europe that dazzles so many people, in large part it is wealth that originated from this continent.”
Ramaphosa said two key developments of global significance — the deadly Covid-19 pandemic that exposed the frailty of African economies and the AfCFTA — could serve as a stimulus for Africa to act in unison.
“The pandemic sent a powerful message to our continent about the dangers of overreliance on external sources to meet its growing demand for food and essential supplies.”
The UN Economic Commission for Africa (UNECA) estimates the continent imports about 94% of its pharmaceuticals and medicinal needs at an annual cost of $16bn, he said.
“The AfCFTA has the potential to accelerate economic growth across the continent and create opportunities for entrepreneurs, small and medium enterprises and large corporations to flourish and provide more products and enable member countries to trade with each other without tariffs, or other hindrances.”
This is the second IATF; the first was held in Egypt in 2018. The heads of state from Nigeria, Rwanda, Malawi, Tanzania, Zambia and Zimbabwe attended the official opening at the president’s personal invitation.
The IATF provides a platform for linking international buyers, sellers and investors, as well as allowing for participants and visitors to profile and share market information and investment opportunities in support of intra-African trade and the economic integration of the continent.
This year’s trade fair is hosted by the SA government and the African Export-Import Bank (Afreximbank) and ends on Sunday.
The trade conference is expected to draw more than 10,000 visitors and buyers with more than 80 SA companies, supported by the government, having an opportunity to showcase their products. The exhibition includes a packed programme featuring leading African and international thought leaders and experts. Organisers are expecting that the business-matching event results in the inking of deals worth up to R40bn.
The department of trade, industry & competition estimates the economic effect of the event could result in direct spending of R235m and R580m to GDP.
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