THE PERFECT LAUNCH PAD
THE PERFECT LAUNCH PAD FOR AFRICAThe African Continental Free Trade Area (AfCFTA) could revolutionise African trade.Mpumalanga Province is the perfect launch pad for manufacturers and exporters.CREDIT: TRALACThe African Continental Free Trade Area (AfCFTA), launched inJanuary 2021, is the world’s largest free trade area by number ofcountries – spanning 55 nations and over 1.4-billion people – anda combined GDP exceeding .4-trillion.Once fully implemented, it will remove tariffs on up to 90% ofgoods, liberalise key services and promote seamless cross-borderinvestment. In this context, South Africa – already Africa’s mostindustrialised economy – stands to benefit significantly. At thesubnational level, Mpumalanga Province, strategically locatedon South Africa’s eastern border with Mozambique and eSwatini,emerges as a critical springboard for companies seeking to accessregional markets under the AfCFTA framework.The implementation of AfCFTA will particularly benefit sectors inwhich Mpumalanga already has a competitive edge, especially agroprocessing,mineral beneficiation and industrial manufacturing.Under the new agreement, the removal of intra-African tariffs onprocessed agricultural goods is expected to boost food exportsby over 20%, opening up fast-growing consumer markets in West,Central and East Africa. Goods processed in Mpumalanga provincecan now reach African markets with significantly lower tariffs, whileexporters gain from harmonised rules of origin and streamlinedcustoms protocols.In this new continental landscape, regions with the right mix ofinfrastructure, logistics connectivity and sectoral capability will bebest positioned to capitalise. Mpumalanga Province, located onSouth Africa’s eastern corridor, offers a strategic advantage as alogistics and production hub. It connects efficiently to Maputo Portvia the Maputo Development Corridor – one of the continent’smost developed trade routes – facilitating fast, low-cost access toregional and international markets. For manufacturers looking toleverage AfCFTA access, Mpumalanga’s position enables seamlesscross-border movement to Mozambique, eSwatini and the broaderSADC region.For investors and exporters, AfCFTA is more than a trade deal– it is an industrial policy platform. It offers a rare opportunity toscale production in Africa for African markets, aided by regionalindustrial parks, investment incentives and Special Economic Zones.South Africa’s inclusion in the agreement brings regulatory certaintyand access to preferential trade terms, while Mpumalanga’scost-competitive manufacturing base, proximity to Johannesburg’sfinancial ecosystem and access to SADC’s 380-million consumersmake it a logical production site for pan-African expansion.In conclusion, as AfCFTA dismantles trade barriers across thecontinent, Mpumalanga Province offers an unmatched combinationof location, infrastructure, energy capacity and sectoral strength.From its connectivity to Maputo Port, to its dominance in power andagriculture, Mpumalanga is primed to serve as a launch pad formanufacturers and exporters into the broader African market. Withexport-focused industrial zones, AfCFTA-aligned regulatory supportand a fast-growing regional consumer base, the province is not justa gateway – it is a growth engine for Africa’s next generation oftrade-led development.26
AfCFTA FAST FACTSAfrica’s exports could increase by 0-billion and someexperts predict that continental business and consumerspending could reach .7-trillion by 2030.0BILLIONAfCFTA couldboost regional incomeby 7% or 0-billion(Source: the World Bank)AfCFTA could lift30millionpeopleout of poverty, accordingto the World BankABOUT SADCSouth Africa is a member of one of Africa’s oldestregional organisations, the 16-member SouthernAfrican Development Community (SADC). Thisenables duty-free trade within a growing marketof more than 360-million people. All goodsshipped under SADC Certificate of Origin receiveduty-free status.AfCFTAcouldboostwagesby up toDuty-free tradewithin a GROWING MARKETof more than360millionpeople10%* World Bank estimate27
