Africa: SADC Free Trade Area: Good News for Africa
The news that twelve Southern African nations have set up of a free trade area is a clear indication that Africa has started looking inwards for market. The bid to strengthen regional exchange of goods and economic integration for a market of 247 million people and an economy worth more than $430 billion will be an extra mile covered as far as the quest for African Economic integration is concerned.
The accord that was made during the 28th SADC (Southern African Development Community) summit of the 15-nation in Johannesburg will indeed make SADC an attractive trading area. The bloc includes Angola, Botswana, Zambia, Malawi, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, Tanzania, South Africa, Zimbabwe and the Democratic Republic of Congo. Angola, Seychelles and Congo have yet to sign the agreement.
Other African regional trade blocs such as Economic Community of West African States (ECOWAS), Common Market for Eastern and Southern Africa (COMESA) and East Africa Community (EAC) ought to emulate this move in order to avail an estimated 1 billion people market to African entrepreneurs.
The need for economic integration is not only about the removal of tariff barriers but should focus on building both productive and trade capacity. There is a need to expand agriculture and industrial base as well to promote intra-regional trade.
For this to be practical enough, hard work, dedication, and unswerving commitment is necessary from the member states to mobilise resources available so as to meet the objective of strengthening trade in Africa to accelerate economic growth and reduce poverty in the continent. Various member countries need to develop structures and strengthen supply. The regions should also diversify their productive capacity to expand the range of products that can be traded in striving to increase the value addition of the products. This will accelerate development in Africa.
(africanexecutive)