The Continental Free Trade Agreement (CFTA) is a landmark trade agreement that was created to help boost intra-African trade and create a single market for goods and services. It is expected to be the world`s largest free trade area by the number of participating countries and will cover more than 1.2 billion people.
South Africa, one of the biggest economies in Africa, has already signed the agreement. The CFTA will create a tariff-free single market for over 85% of goods traded within the African continent, which means that South Africa, as a signatory, will have access to a bigger market and new investment opportunities.
The CFTA was first launched in 2018, and since then, 54 African Union member countries have signed the agreement. The agreement aims to facilitate the movement of goods, services and people between African countries and strengthen economic cooperation.
The CFTA will also help to create a more diversified African economy as it will encourage African countries to specialize in areas where they have a comparative advantage. Improved competitiveness in different sectors will help to strengthen economic growth and create more jobs, particularly for young people.
South Africa is expected to gain significantly from the CFTA. With its advanced infrastructure and a diversified economy, South Africa is well-positioned to become a hub for intra-African trade. The country already has strong ties with its neighboring countries and the rest of the continent, and the CFTA will help to enhance those ties.
However, there are a few concerns that need to be addressed for the CFTA to be successful. One of the key issues is the lack of infrastructure in some African countries, which may make it difficult for them to take full advantage of the CFTA. There is also a need for improved customs procedures and regulations to facilitate the movement of goods across borders.
In conclusion, the CFTA is a historic agreement that will create new opportunities for businesses and investors in South Africa and across the African continent. It will be important for governments and businesses to work together to ensure that the CFTA is implemented successfully and that its benefits are fully realized.