South Africa and the AfCFTA: a strategic opportunity to lead Africa's Iindustrial future

IOL News

12-05-2025

A worker poses with a handful of nickel ore. The global energy transition has created unprecedented demand for critical minerals. The minerals sought for the transition include minerals like lithium, cobalt, manganese and nickel, writes the author.
Image: Reuters
The African Continental Free Trade Agreement (AfCFTA), launched in 2021, offers a once-in-a-generation opportunity to unite 54 nations into a thriving common market, igniting an African industrial revolution with the potential to echo across global trade systems.
For South Africa, often regarded as the continent's economic engine, this is a pivotal moment to lead with intention, conviction and pride.
As global powers set their sights on Africa's critical mineral reserves, lithium, cobalt and a demographic advantage expected to represent nearly 40% of the world's population by 2060, the AfCFTA provides a path toward prosperity on our own terms.
'Africa isn't just rising; it's ready to lead,' declared IMF Managing Director Kristalina Georgieva. This leadership, however, will depend not on rhetoric but on execution—on the collaborative efforts of private enterprise, public governance, youth innovation and policy clarity.
The global economy is in flux. Fragile supply chains, shifting alliances and the race for sustainable and digital industrialisation have left gaps that Africa is well-positioned to fill. The AfCFTA connects our fragmented markets, forming an economic bloc with a combined GDP of over US$3.4 trillion.
This isn't just theoretical.
The World Bank estimates that the AfCFTA could lift 30 million people out of extreme poverty and increase incomes across the continent by 7% by 2035. South Africa, with its minerals, manufacturing base, financial systems and technology ecosystem, is uniquely placed to drive this transformation—if we act with urgency and unity.
Yet, as with any ambitious journey, the road ahead is not without obstacles. Infrastructure remains a stubborn barrier. Port delays in Durban, underinvestment in rail freight and overburdened roads in Gauteng undermine our competitiveness.
Skills shortages further limit our readiness—too many South African youth remain locked out of opportunities in advanced manufacturing, green energy and digital industries.
Our trade systems still operate on outdated protocols, creating friction where there should be seamless integration.
But these challenges also represent levers for change. Imagine the private sector investing in a new tech hub in Cape Town or retraining programs for miners to pivot into solar energy installation. Envision the public sector renewing infrastructure investment with an eye toward interconnectivity, resilience and export readiness.
Policymakers could streamline customs procedures and harmonize regulations to support small and medium enterprises (SMEs) in crossing borders with ease. According to UNECA, integrating South African steel into regional automotive value chains could boost jobs, GDP and productivity simultaneously.
We are not starting from scratch. Our foundations are solid. Political and macroeconomic stability, strong financial institutions and a globally integrated business sector already make South Africa a regional anchor.
Botswana's sustained growth and fiscal prudence show that sound governance attracts long-term investment— South Africa should take heed. We must root out corruption and waste, not only for ethical reasons but as a fundamental enabler of competitiveness.
We must reimagine our public expenditure: financing education that prepares youth for future jobs, building roads and broadband networks that connect to regional trade corridors and expanding energy generation to support manufacturing growth.
Most importantly, we must invest in linking our economies: South Africa's mineral processing expertise can complement Kenya's agribusiness, Egypt's textiles and Ghana's digital payment systems. In this vision, Africa doesn't trade raw commodities—it trades finished goods, driven by intra-African value chains.
Leadership must be shared and inclusive. Private sector players—think Sasol, MTN and Johannesburg's agile tech startups, must move from national champions to regional operators. Governments must collaborate, not compete, to build aligned regulations, joint infrastructure and data-sharing protocols. Our youth, projected to be the largest population group on the planet by 2060, must be empowered not just as beneficiaries, but as co creators.
M-Pesa in East Africa is one example of youth-led disruption that scaled across borders. South Africa has the people, the institutions and the industrial base to spark this type of innovation on a continental scale.
Global development partners also have a role—through funding, technology transfers and capacity-building— but must act as enablers, not decision-makers. Our future must be designed in Africa, by Africans.
History is watching.
The AfCFTA could define the next 50 years of African development. If we seize this moment, we will see factories rise from Soweto to Nairobi, powering global markets while improving lives. Our youth could thrive as skilled entrepreneurs and engineers, rather than be statistics of unemployment or migration. But if we hesitate, the consequence is familiar: raw resources shipped out, jobs lost and sovereignty weakened by dependency.
The African Development Bank projects that trade-led industrialization could significantly reduce poverty—but only if supported by coherent strategy and implementation.
To this end, a concrete and implementable initiative could be the formation of a South Africa-led AfCFTA Task Force within six months.
This task force—comprising business leaders, ministers, economists and youth representatives—would be mandated to identify and operationalize one regional trade value chain and one cross-border skills hub by 2027. This is not another think tank.
It is a vehicle for tangible outcomes—pilot projects, streamlined logistics, fast-tracked skills development and model partnerships. It would ensure South Africa's leadership is not just symbolic, but structural.
The AfCFTA is not a distant dream—it is already law. What remains is to animate it with leadership, investment and vision. South Africa's moment is now. Let us rise with purpose, not just for ourselves, but for the continent that looks to us for inspiration, coordination and courage. If we succeed, Africa will not only rise—it will lead.
Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa.
Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa.
Image: Supplied