Boosting trade with open skies, ports, and streamlined visas in Africa

Alderman James Vos, the City of Cape Town's Mayoral Committee Member for Economic Growth

The conference, held at the Durban International Convention Centre, brought together trade experts, civil society representatives, and leaders from both the private and public sectors to explore ways to integrate SMMEs into AfCFTA. Covering 1.3 billion people with a combined GDP of $3t, AfCFTA stands as the world’s largest free trade area by population.

"Only about 16% of African trade occurs within the continent, compared to 63% in Europe and 55% in Asia. AfCFTA has the potential to boost production and the movement of African-made goods, leading to faster, inclusive economic growth and employment for millions more Africans," said Alderman Vos.

In his address, Alderman Vos highlighted Cape Town’s thriving industries, including its status as a leading destination for global call centres and the top city worldwide for luxury offshore catamaran production, as well as its growing sectors in clothing production, green technology manufacturing, and the food and beverage industry.

"This success is largely due to our City government’s targeted efforts to support skills development, investment facilitation, and investing in key infrastructure such as energy, water, mobility, and safety," he said.

Supporting SMMEs and entrepreneurs

Alderman Vos also spotlighted Cape Town's robust enterprise development initiatives to empower SMMEs with market access and growth opportunities.

"Through these programmes, we have supported thousands of entrepreneurs. Our Business Hub team handled over 3,700 inquiries and hosted 104 workshops last year alone. We also back the Cape Trade Portal which is administered by Wesgro. It is a digital marketplace that connects Cape-based exporters with global buyers and provides essential training and resources," he said.

He also shared recent successes, such as the Made in the Cape Expo, which connected 420 exporters with buyers from 23 countries, including Ghana, the USA, and France. Additionally, the Invest Cape Town Centre at City Hall was launched to spotlight local products and businesses.

Importance of efficient operations

Despite these efforts, Alderman Vos stressed that substantial economic and employment growth hinges on the efficient operation of key systems and structures.

"Transnet must expedite private sector involvement in our port operations and the development and maintenance of a liquid bulk terminal at the Port of Cape Town. The port’s performance impacts a diverse range of critical products, from agricultural goods to high-value exports like wine, agriculture products, and seafood,” he emphasised.

Alderman Vos also called on the National Government to fulfil its commitment to the Single African Air Transport Market, an African Union initiative promoting trade, travel, and connectivity through open skies.

"A decade ago, the International Air Transport Association reported that if 12 key African countries, including South Africa, opened their markets and increased connectivity, it would generate an additional 155,000 jobs and $1.3 billion in annual GDP," he said.

Lastly, Alderman Vos highlighted the urgent need for an effective visa system to facilitate the trade of services under AfCFTA.

“I will continue to engage with our new Government of National Unity to diligently pursue policies that drive the economic growth South Africa desperately needs,” he said.