Page 4 - JCCI Business FOCUS Vol2 No4

PUSHING AHEAD WITH AFRICAN INTEGRATION

Faith Tigere, Tutwa Consulting Group ■ Afican Continental Free Trade
Agreement
egional economic ■ Discussions with the UK on a
integration of the continent post-Brexit deal
Ris key for its continued ■ WTO Doha Development Round
development. This is a strategy that negotiations are still ongoing
has been driven forward by many
regional institutions including the ■ SADC EU Economic Partnership
Southern African Development Agreement (EPA) implementation
Community (SADC). On 12 process underway
April 2018, the Johannesburg
Chamber of Commerce and The African Continental Free
Trade Agreement (AfCFTA)
Industry and Tutwa Consulting
Group hosted an event focusing The AfCFTA is potentially
on regional integration and the world’s largest trade
industrialisation through trade agreement, including up to 55
in southern Africa. The event members. It is in line with the
was attended by government and African Union’s vision of a fully
private sector with presentations integrated Africa and one of
made by the Department of Trade the 12 flagship programmes
and Industry and Business Unity highlighted in Agenda 2063.
South Africa. The main themes The agreement covers trade in
were the SADC industrialisation Minister Lindiwe Sisulu, attends meeting of the 18th Extraordinary Session of the Executive Council in Kigali, Rwanda, 18 services, trade in goods, dispute
March 2018
agenda, participation of the private settlement, intellectual property
sector in trade negotiations and continent as a whole is steadily the private sector as well as key matters. They have the power rights, competition policy and
the African Continental Free on the rise. Regionally, the agencies such as the Development to drive economic integration, international investment. The
Agreement (AfCFTA). corporate spread of South African Bank of Southern Africa (DBSA) increase intra-regional trade agreement is currently being
companies, such as Shoprite, SAB, and the Industrial Development and facilitate investment in negotiated and is yet to be
SADC Industrialisation Agenda Sun International, Nando’s and Corporation (IDC). Further work the continent by expanding concluded, despite some progress
The SADC Industrialisation Sanlam, across the continent has is needed to get all stakeholders their operations. Over 30% of in the first quarter of 2018. The
Agenda was adopted in 2015 and steadily increased with Sandton working towards common goals the world GDP is from trade successful conclusion of this
aims to support the development being the legal, financial and to support business and economic flows. Thus, it is crucial for agreement will harmonise certain
of regional value chains. The banking hub for southern Africa. development. private sector involvement in trades rules such as rules of
main themes of the agenda are Despite the relatively positive To strengthen regional trade negotiations and in the origin and promote intra-African
industrialisation, competitiveness outlook for South African integration, deep value-chain formulation of trade policies. trade. The AfCFTA also seeks to
and regional integration. In businesses in the region, there research is being undertaken There are currently windows liberalise 90 percent of tariff lines
addition to that the agenda has remain challenges that indicate particularly in the areas of of opportunity for the private on goods. This agreement creates
developed 22 different but key an absence of an overall coherent agriculture, transport and sector to get involved in trade the momentum for African trade
intervention projects targeted for strategy for industrialisation and construction. The research also negotiations at the regional and through promoting regional
implementation by 2020. regional integration. A few red targets identifying opportunities, continental level. In SADC, trade integration in Africa.
Following the SADC Summit flags include no clear over-arching supporting and encouraging policy negotiations currently in For further information on
in South Africa in 2017, the main African commercial strategy to South African companies to shift the pipeline are the SADC Rules the opportunities available from
objective is strengthening the complement political initiatives for from straight trade to embedded of Origin (ROO) Review to be the regional integration agenda
partnership with the private integration. This is reinforced by investments, and advancing mega- discussed at National Economic in Africa, please contact Tutwa
sector in developing industry regional institutions that have only industrial projects in the region Development and Labour Council Consulting Group – www.
and regional value chains. Key been providing political leadership e.g. agriculture zones in SADC. (NEDLAC). On a continental tutwaconsulting.com. For
data trends indicate that there without the necessary commercial level, there are the Tripartite Free opportunities to participate in the
are a large share of South African edge to reinforce these strategies. The Private Sector and Trade Trade Area (TFTA) negotiations development of trade negotiating
exports going to the rest of the In South Africa, there continues The private sector has always underway. The other opportunities positions, please contact the
SADC region and trade with the to be a lack of coordination played an important role in trade include: Johannesburg Chamber of
between the government and Commerce and Industry. n

USERS MUST PAY FOR ROADS, SAYS SANRAL CEO

lthough South Africa paved and 591 876 gravel). Of this efficiency technologies. for social infrastructure such as for road users. Equity and
has the 10th largest road SANRAL is responsible for 22 214 “The total estimated funding housing, schools and hospitals. direct user charging must
Anetwork in the world, its kilometres of the road system. requirements to sustain the “Future tax or pricing be embedded in such future
need and efficient usage must be He said consumers and road South African road network, mechanisms are required funding sources.” n
interrogated, says Skhumbuzo
Macozoma, CEO of the SA users today demand rapid including addressing backlogs in
National Roads Agency SOC Ltd mobility with efficiencies and surfacing and capacity expansion
(SANRAL). minimal costs. is R116.1 bn. The current
allocation for the road network is
Mixed use commercial and
He said with political changes R52 bn. What can we afford and
since democracy, employees were residential developments were how do we prioritise?”
giving rise to shorter travel
living closer to their workplaces.
distances, thus raising questions He proposed that a funding
Macozoma was addressing a around roads that previously policy for transport infrastructure
conference themed “Roads to linked cities to workers in far- and road infrastructure must
Social and Economic Growth” flung areas. be driven by National Treasury
arranged by the South African Macozoma said questions working with sector departments.
Road Federation (SARF) in
association with the Washington- must be asked about the most Macozoma said economic and
based International Road suitable funding model for roads social economic infrastructure
Federation (IRF) and the Paris- infrastructure. He said the fuel differentiation was imperative
levy provided insufficient funding.
in determining future funding
based World Roads Association models.
(PIARC), in Durban. “The future contribution of the
fuel levy to the Central Revenue “Road users must be directly
Macozoma said South Africa Fund is uncertain with the responsible for economic
has a total road network of projected electric car take-off infrastructure, such as roads.
750 000 kilometres (158 124
in 2022 and established vehicle The Government must provide Skhumbuzo Macozoma, CEO of the SA National Roads Agency SOC Ltd (SANRAL)

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