Investing in Africa: AfCFTA secretariat urges governments to commit funds
Image: James Wiseman/Unsplash
Banele Ginindza
The African Continental Free Trade Area (AfCFTA) secretariat has this far done its work in developing updated cutting edge policies, including those of digital trade and digital identity for people and goods, throwing the gauntlet to governments to commit finance and practical trade across the continent, AfCFTA Director for Coordination and Programmes Tsotetsi Makong said on Wednesday.
Speaking at the 2025 TIPS Forum, which seeks to deepen understanding of the implications of the AfCFTA and regional integration on industrial development in Southern Africa, Makong said the continent continued to lose capital as traders preferred to travel to China, Turkeye, Dubai and other destinations to buy goods resold in the African market.
He said the continent still faced challenges on the digital divide with an assessment that it needs about 700 data centres to facilitate digital trade across the 49 countries that have yet ratified the AfCTA protocols.
"What's for sure is that the legal framework is there. As the AfCFTA, we have proven a point, not ourselves but our members, but for goods to move you need a real network.
"The AfCFTA without incentives being given, without some level and modicum of subsidy provided, finance coming in, infrastructure being laid out, probably we will only have the legal instrument without legs so we certainly need to think about how we can bring all the tools and make them apply on a crossborder basis and on a cross continental basis." Makong said.
He said one of the most recent important protocols adopted is on digital trade, which was an important protocol as no other document of this nature, comprehensive and extensive, shows the continent ready to integrate when it comes to an actual digital market.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
He said the protocol had annexes on crossborder digital payments, which was important as the continent loses $5 billion in forex exchanges and the high cost of doing business outside the common monetary areas.
He said another annex dealt with digital identities as the mobility of people and business is a challenge.
"Here members have agreed and come up with a legal instrument that creates the AfCFTA digital identity. It is possible for business people to have a digital identity whether physical or numerical, whichever form it takes, that can be recognised across borders, it is an important issue allowing free movement of people and goods," he said.
The hybrid TIPS 2025 forum, being held over two days, seeks to identify risks to smaller economies or that circumvention of trade protocols could undermine the intent of the AfCFTA to grow the industrial base across the continent and strengthen economic development.
"We have to think about a different model that can operate within the rules while delivering on the continental industrialisation mandate. What would be that particular model that can help us work within the rules but at the same time be able to deliver for this continent - so it's a very important issue that we should not take lightly. Naivety should not be the name of the game," he said.
He said while policy coherence was possible as the framework was established, the politicians still needed to ensure the policies were relevant across the borders and the continent at large.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
2 hours ago
- Daily Maverick
Economic spin cycle: how anti-dumping duties could impact South African consumers
South Africa's washing machines are about to get more expensive, and Defy is hoping that's good news. The Department of Trade, Industry and Competition (DTIC) has endorsed the defence of the fully automatic top-loading washer hill. What began as a complaint lodged by Defy Appliances has now become a formal anti-dumping investigation and, soon, the likely imposition of provisional duties against imports from China and Thailand. It looks like a straightforward response to cheap foreign goods flooding the market, hammering local manufacturers and threatening jobs. But it is simultaneously a complex web of strategic policy, protectionism, precedent, and unintended consequences in the spin cycle. A heavy load The saga officially began in October 2024 when Defy asked the International Trade Administration Commission (Itac) to investigate imports of top-loading washers (10-17kg capacity) from China and Thailand. Defy alleges dumping margins of 21.48% for Chinese products and a whopping 67.11% for Thai machines, figures based on SA Revenue Service import data and overseas retail prices. It claims these imports have undercut local prices, slashed profits and forced an inventory build-up – a sign of unsold stock piling up in warehouses. In Defy's view, unless something is done, the injury will get worse as global overcapacity looks for cheap destinations such as South Africa. Itac seems to agree, at least enough to say a prima facie case exists. Provisional duties are expected by the end of 2025. Caught in a whirlpool Hisense South Africa was named alongside Chinese giant Midea in the Government Gazette, but the company says there's nothing sinister at play. 'Hisense SA categorically affirms that it has never been complicit in facilitating any form of alleged dumping, nor has it acted in contravention of South African trade laws or ethical business practices,' Luna Nortje, deputy general manager at Hisense SA, told Daily Maverick. 'We are fully committed to fair, transparent trade and continue to work closely with all relevant regulatory bodies to ensure full compliance.' 'These are standard processes designed to ensure market fairness and in no way imply unethical practice,' she said. Hisense's local credentials are significant. Since setting up shop in 1996, the company has invested more than R350-million into its Atlantis manufacturing plant, which today produces up to 500,000 refrigerators and a million televisions annually – not just for South Africa, but for export to more than 10 African countries. In fact, Nortje said Hisense was exploring further localisation: 'We are currently in the process of assessing the viability of manufacturing chest freezers at (the Atlantis) facility.' That said, she acknowledged the consumer pain. 'These tariffs will sadly affect consumers – as the product prices of those specific items would correspondingly increase.' A beast of Defy's own design Defy has danced this policy waltz before. Back in 2004, the company lobbied for a reduction in washing machine tariffs – it had halted local production and argued that duties hurt consumers. Then in 2019, it asked for a 30% hike on smaller top-loaders to protect planned investments in local manufacturing. Fast forward to 2025, and Defy is calling for protection again, but this time with localisation and industrial strategy riding shotgun. The DTIC's 'Reimagined Industrial Strategy' leans heavily on import substitution and job retention, and Defy's latest campaign aligns perfectly with those goals. In a way, the company is using trade policy not just as a shield, but as a tool to de-risk investment. Whether that's smart industrial pragmatism or self-serving protectionism depends on where you sit in the value chain. Copying moves from across the pond South Africa's washer war borrows heavily from America's. When Whirlpool triggered a trade war in the US against Samsung and LG a decade ago, it led to a game of global musical chairs. Once South Korean and Mexican washers were slapped with duties, production shifted to China. Then, when Chinese goods were targeted, factories moved to Thailand and Vietnam. This tactic (called 'country-hopping') made the US tariffs look more like speed bumps than roadblocks. Defy's decision to hit both China and Thailand out of the gate is a direct nod to that history; to plug the loopholes before they appear. But the American experience also shows how these moves can backfire. Prices on US washing machines rose by nearly 12% after those 2018 tariffs. Even dryers, which weren't tariffed, saw price hikes because retailers usually sell them in pairs. In the end, American consumers forked out $1.5 billion more, for 1,800 saved jobs. That worked out to more than $800,000 per job. Who wins, who spins? South Africa's washing machine trade wars come at a bad time for the economy. Winners: Defy gets a reprieve, likely recovering margin and market share. Policymakers score localisation points and can point to job protection. Local component suppliers might benefit if production ramps up. Losers: Consumers face higher prices – potentially 22% or more on affected washers. Low-income households bear the brunt; appliance affordability is a key cost-of-living metric. Retailers and importers scramble to find new sources, maybe from Vietnam, Turkey or Eastern Europe. Chinese and Thai exporters are likely to lose Southern African Customs Union market share, at least temporarily. Even complementary goods such as dryers could see price bumps, mimicking the US model. And as Defy gains pricing power, don't expect them to keep prices flat. Airing dirty laundry Anti-dumping duties sound noble, shielding local jobs from unfair trade, but they also set a precedent. What's stopping other industries from filing similar complaints? And if each results in price hikes, the inflationary impact stacks up. This matters for the South African Reserve Bank, which is already trying to keep inflation within the 3-6% target band. Appliances might be a small piece of the pie, but multiple actions like this create a cumulative effect. There's also the question of what happens in five years when the duties expire. Itac will have to decide whether the 'injury' risk still exists, and that decision will be just as political as it is economic… and Defy needs to show it was worth the effort with local investment. DM
IOL News
8 hours ago
- IOL News
Ramaphosa says South Africa will engage US over new tariffs as trade challenges loom
President Cyril Ramaphosa reiterated that South Africa's trade relations with the US have historically been complementary in nature. Image: Itumeleng English / Independent Newspapers Banele Ginidza President Cyril Ramaphosa has underscored the country's commitment to maintaining market access in the face of the United States' recent decision to impose a 30% tariff on South African imports. This significant shift in trade policy highlights the urgency for South Africa to navigate increasingly turbulent international trade waters and adapt its export strategies. In his latest newsletter on Monday, Ramaphosa articulated a dual approach: not only will the government engage with the US to ensure mutually beneficial trade relations, but it will also accelerate the diversification of its export markets by boosting intra-African trade. Recognising the US as South Africa's third-largest trading partner, Ramaphosa acknowledged the measure's potential to disrupt industries heavily dependent on exports to the US, thereby affecting thousands of jobs and the country's fiscal stability. "Our foremost priority is protecting our export industries. As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US," Ramaphosa said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Last month, US President Donald Trump said the sweeping tariffs will apply to 'any and all South African products sent into the United States,' and were being imposed outside of any sectoral trade deals. In a letter dated July 7, Trump said the move was 'necessary to correct the many years of South Africa's Tariff, and Non Tariff, Policies and Trade Barriers,' blaming Pretoria for what he called 'unsustainable Trade Deficits against the United States.' However, Ramaphosa reiterated that South Africa's trade relations with the US have historically been complementary in nature. He said South African exports did not compete with US producers and did not pose a threat to US industry. "Largely, our exports are inputs into US industries and therefore support the United States' industrial base. South Africa is also the biggest investor from the African continent into the US, with 22 of our companies investing in a number of sectors including, mining, chemicals, pharmaceuticals and the food chain," he said. "South African imports ultimately benefit US consumers in terms of both choice and cost. By way of example, citrus production is counter-seasonal and does not pose a threat to US production. "Furthermore, production by US companies has been on the decline for a number of years as yhe US sector grapples with low yields, citrus greening disease, and other factors unrelated to competition from imports. Imports from South Africa, the world's second largest citrus exporter, have filled a gap and contributed to stable supply and prices for US consumers."
The Star
9 hours ago
- The Star
Activists demand repatriation of Edgar Lungu's body as court reserves judgment
Activists under the Progressive Forces of South Africa are calling for the repatriation of the late former Zambian president Edgar Chagwa Lungu's body, as the Pretoria High Court reserves judgment on the landmark case until later this week. This follows the death of former Zambian president Edgar Chagwa Lungu on June 5 at Mediclinic Medforum in Pretoria, which has since triggered a tense standoff between his family and the Zambian government. Authorities in Zambia are pushing for the repatriation of former President Edgar Lungu's remains for an official state funeral, a move firmly rejected by his family, who insist he be laid to rest in South Africa after failed negotiations. The dramatic court ruling was delivered just moments before a private burial was due to take place on 31 July. Lungu served as president from January 25, 2015, until August 24, 2021. Following his departure from office, he faced a series of legal challenges and political isolation. His family, including his wife, Esther Lungu, and their children, have been implicated in various corruption charges, including allegations of money laundering and proceeds of crime. Esther Lungu has pleaded not guilty to charges of stealing cars. Lebogang Shovhote, Secretary General of the Progressive Forces of South Africa, voiced strong opposition to Edgar Lungu being laid to rest in South Africa. She pointed out that the country already struggles with ongoing land claim disputes, where burial sites are sometimes exploited to support land ownership claims. Shohote warned that permitting Lungu's burial in South Africa could set a troubling precedent, making the nation a refuge for those escaping legal consequences. 'The Lungu family has committed offences in Zambia and now wants to use South Africa as a place of refuge,' she said. Shovhote further alleged that Lungu entered South Africa using a passport under a different name, raising serious concerns about discrepancies in his documentation. 'Even hospital records don't reflect that Edgar Lungu was ever admitted to any South African facility,' she claimed. She added that burying Lungu in South Africa could set a dangerous precedent, potentially encouraging other African leaders accused of crimes in their home countries to view South Africa as a refuge to escape justice and avoid facing consequences for their actions. Shovhote emphasised that they are hopeful the court will order the Lungu family to repatriate his body to Zambia. The Pretoria High Court has reserved judgment, with Deputy Judge President Aubrey Ledwaba stating that a ruling will be delivered before the end of the week. The Star [email protected]
