Durban, South Africa – Wednesday witnessed a historic milestone in South Africa’s economic journey as the country’s inaugural shipment under the African Continental Free Trade Area (ACFTA) departed from the bustling Port City of Durban.
The event was graced by African trade ministers, senior officials, and South African President Cyril Ramaphosa, who hailed the occasion as pivotal in reshaping the continent’s economic landscape.
President Ramaphosa, speaking at the Durban Port, underscored the significance of the shipment, highlighting that it signifies the realiation of ACFTA as a tangible force in fostering intra-Africa trade.
WATCH: South Africa makes a maiden shipment under ACFTA
He noted that while African nations engage in trade with the rest of the world, there has been a limited exchange among themselves.
ALSO READ: South Africa advances, Tunisia exits: AFCON 2023 as Group E drama Unfolds
The ACFTA, according to Ramaphosa, creates the world’s largest free trade area by the number of participating countries, holding the potential to bring transformative change and tremendous opportunities for African economies and businesses.
The Navios Verde, one of two ships departing from Durban, is bound for Ghana, loaded with over 5 thousand containers filled with refrigerators.
This shipment officially marks the commencement of South Africa’s preferential trade under the ACFTA.
Wamkele Keabetswe Mene, the Secretary General of ACFTA, emphasised the economic potential inherent in the combined GDP of the region and South Africa.
He noted that this strength enables South Africa to receive imports from countries across the African continent, both in goods and services.
The ultimate goal is to contribute to Africa’s combined GDP, with aspirations to reach USD 16.5 trillion by the year 2050. Mene stressed the critical significance of the day’s events in achieving these ambitious objectives.
The ACFTA is expected to enhance regional trade, fostering opportunities for businesses to grow value chains and generate job opportunities.
While all 55 African states are signatories of the ACFTA, only a dozen have initiated trading activities so far. Upon full implementation, the ACFTA aims to connect over 1.7 billion people on the continent, creating a unified African market.
As South Africa joins twelve other African nations in official trade under the ACFTA, the historic shipment from Durban symbolises a momentous step towards a more integrated and economically dynamic Africa.
The agreement holds the promise of reshaping trade dynamics on the continent and contributing to its overall economic prosperity.
