Mpumalanga small businesses will benefit from the African Continental Free Trade Agreement (AfCFTA) local experts are saying.
The primary aim of AfCFTA is to achieve tariff liberalization amongst African member states.Value chains and new markets have been created by South Africa’s ratification of the AfCFTA agreement on tariff reduction of 90% on all goods being exported to other African countries. These new value chains are accessible to formalized SMEs and other businesses.
Small business owners who are registered formally are set to access the AfCFTA, informal businesses and sole traders are being advised to formalize by experts. “If your business is not formalized, you will not access other African markets under the AfCFTA. Use this time to formalize your business,” Dr Ruhonye said.
Mpumalanga SME’s will benefit greatly from the free trade area by exporting their products with a reduction in tariffs plus exposure to regional and international markets. The free trade area will make goods imported from other African countries cheaper in Mpumalanga and also local goods cheaper in other African countries.
“The free trade area is good for my business. All of a sudden the unification of Africa has increased women’s access to business and funding opportunities. The free trade area will bring my business lots of profits and newer markets that were closed to me before,” a local businessman who didn’t want to be named.
As the global economy is in turmoil because of the Covid-19 pandemic, the AfCFTA has created a vast market for Mpumalanga locals. Efforts to get comments from the Department of Small Business Development were not successful by time of going to print.
The AfCFTA cuts red tape on major produce and goods from other countries and it also simplifies customs procedure when locals want to export their products to other countries. It will also facilitate Mpumalanga’s structural adjustments to deep set historical economic imbalances. Experts say that the free trade area will bring much needed and relevant reforms in Mpumalanga that are necessary to enhance long term economic growth in the province.
