Africa|Automotive|Export|Manufacturing|rail|Road|Services|transport|Manufacturing |Products|Infrastructure
Africa|Automotive|Export|Manufacturing|rail|Road|Services|transport|Manufacturing |Products|Infrastructure

AfCFTA to boost private sector growth in Africa

22nd June 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer


Font size: - +

The African Continental Free Trade Area (AfCFTA) will boost private sector growth and reach in the continent, panellists participating in an Infrastructure Africa session on restoring economic growth, connecting African countries and optimising the AfCFTA, on June 22, concurred.

AfCFTA policy network Ghana executive director Louis Afful said the AfCFTA was a good option to enable African markets to have access to each other and was the “best opportunity perspective” in the area of boosting intra-African trade.

He noted that Africa had not performed well in terms of countries on the continent trading with each other, especially compared with other regions of the world that had been trading “massively” among themselves for some time.

Afful stated that the AfCFTA was important because, over time, it should result in the development and implementation of one trading standardisation for African products and a uniform harmonisation of such products being registered.

Further, he said the agreement would enable products that had been historically rejected for export because of certain “technical barriers” to be redirected to other parts of Africa.

This, said Afful, was good for governments because it would result in a strategic opening of economies through the manufacturing and industrialisation agenda.

He added that it was also imperative because it would create one market, which would lead to one customs union and potentially one currency, one central bank and one passport. “It is an agenda that is going to go steadily.”

However, Afful said the AfCFTA was not just about trading goods, but also about trading services, competition policies, investments, intellectual property rights, e-commerce and other protocols.


African Rail Industry Association CEO Mesela Nhlapo said the AfCFTA was an instrument that could bring about the vision that Africans were looking for, from an African perspective.

She says Africans, embracing the AfCFTA, should no longer continue being separated from each other and that to achieve the most benefits from the trade agreement, they had to work together.

One key area of development and integration was that of transport, where Nhlapo said shifts needed to be made away from road-based transport which fulfilled 90% of the needs of transporting goods and people in Africa.

She added that Africans needed to ensure they were more efficient and that they could control their own economies.

Bosch Africa president Dr Markus Thill, speaking in his capacity as African Association of Automotive Manufacturers VP, said the automotive industry in Africa, although small, needed closer collaboration between government and the private sector to make a decent automotive industry in Africa a reality.

He noted that South Africa, Morocco and Egypt had some vehicle manufacturing capacity, but that there was little local value add localisation, leading to few jobs being available the sector.

He added that the situation was exacerbated by the fact that Africa imported used vehicles to sell in its automotive markets, and was once described by an African President as “the junkyard of the world”.

Changing Africa’s image required scale and this was where the AfCFTA came into play, said Thill.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online


Latest Multimedia

Photo of Martin Creamer
On-The-Air (21/06/2024)
Updated 7 hours ago By: Martin Creamer

Latest News

Magazine round up | 21 June 2024
Magazine round up | 21 June 2024
21st June 2024


Actom image

Your one-stop global energy-solution partner

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...


Latest Multimedia

sponsored by

Magazine round up | 21 June 2024
Magazine round up | 21 June 2024
21st June 2024
Corobrik sets out plans for its Rietvlei operations
Corobrik sets out plans for its Rietvlei operations
19th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.378 0.435s - 140pq - 2rq
Subscribe Now