SA and Angola Forge Stronger Trade Ties to Boost Intra-Africa Economic Growth

Ambassador Mlumbi-Peter underscored the need to align trade priorities within Africa, pointing to the African Continental Free Trade Agreement (AfCFTA) as a transformative framework for the continent.

The Deputy Director General of the Trade Branch at the Department of Trade, Industry and Competition (the dtic), Ambassador Xolelwa Mlumbi-Peter, has emphasized the strategic importance of South Africa and Angola deepening trade and investment ties to unlock their economic potential. She spoke at a South Africa-Angola Business Forum held in Pretoria, where leaders from both nations highlighted the mutual benefits of strengthening intra-Africa trade and cooperation.

Harnessing the Potential of Intra-Africa Trade

Ambassador Mlumbi-Peter underscored the need to align trade priorities within Africa, pointing to the African Continental Free Trade Agreement (AfCFTA) as a transformative framework for the continent.

“Boosting intra-Africa trade has to be a core objective for both our countries. By identifying what we produce and examining imports from outside the continent, we can unlock opportunities to trade among ourselves, reducing external dependencies and enhancing economic resilience,” she said.

Strategic Investments and Infrastructure Development

Khulekani Mathe, CEO of Business Unity South Africa, stressed Angola’s importance as a market for South African products. He identified sectors such as mining, banking, retail, and logistics as key areas for mutual collaboration.

“The presence of South African companies in Angola reflects its significance as an investment destination. To facilitate trade, we need to focus on developing not just physical infrastructure but also institutional frameworks like chambers of commerce,” Mathe noted.

He pointed to the South Africa-Angola Chamber of Commerce as a pivotal platform for fostering bilateral trade and called on businesses from both nations to strengthen their participation.

Overcoming Challenges for Mutual Growth

Both nations face similar economic challenges, including sluggish GDP growth rates below 1% in 2023 and reliance on raw material exports. These challenges highlight the importance of diversifying trade to include value-added products.

“The beneficiation of mineral resources and localisation are critical for job creation and sustainable development,” said Kganki Matabane, CEO of the Black Business Council.

Matabane emphasized the potential of AfCFTA to create new opportunities for businesses in the Southern African Development Community (SADC) region.

Building Sustainable Trade Partnerships

President of the Angola-South Africa Chamber of Commerce, Paula Xavier, emphasized the role of shared cultural and economic visions in fostering sustainable partnerships.

“Aligning our heads of state, promoting entrepreneurial collaborations, and nurturing cultural connections are essential elements for deepening trade ties,” she said.

Expanding Opportunities Through AfCFTA

The African Continental Free Trade Agreement was widely acknowledged at the forum as a game-changer for regional integration and economic growth. It aims to lower trade barriers and streamline cross-border trade, which will benefit countries like Angola and South Africa as they work to build a resilient and interconnected African economy.

Future Prospects

The forum highlighted several priority areas for collaboration:

1. Infrastructure Development: Enhancing transport, energy, and digital connectivity to support trade.
2. Resource Beneficiation: Creating value chains within the region to add value to raw materials.
3. Strengthening Trade Networks: Expanding and formalizing the role of business chambers in facilitating trade.
4. Capacity Building: Investing in skills development to drive sustainable growth.

Leaders from both countries expressed optimism that stronger bilateral trade partnerships would not only bolster regional growth but also contribute significantly to the global economy.