STELLENBOSCH - Analysts believe Africa could be on the verge of an economic breakthrough.
The optimism is rooted in the African Continental Free Trade Area (AfCFTA), which has created the world’s largest free trade area.
The free trade area will connect over 1.4 billion people on the continent.
The agreement will accelerate intra-African trade and position Africa as one of the fastest-growing economic regions in the world.
Stellenbosch Business School guest lecturer Jason Hamilton says the aim of the trade deal is to remove up to 90 percent of tariffs. It will also reduce barriers to trade in goods and services among member economies.
"What is interesting is increasing inter-Africa trade, where currently at about 10 to 15 percent of trade," he says.
"If you look at Europe, we're sitting at higher figures between 50 and 70 percent," he adds.
Hamilton says that if South Africa doubles its intra-African trade, it would not only strengthen economies but could also lift up to 50 million people out of extreme poverty.
"Trade with our neighbours reduces our dependency on decisions made in other regions," says Hamilton.
"It is not about isolating ourselves, but it's about resilience and diversification," he says.
This, according to Hamilton, means African governments need to come together.
The AfCFTA has been in effect since 2021, and Hamilton says there has been some good progress made.
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However, there are still some protocols that need to be harmonised.
"But tractions have been gained as we've gained from a South African perspective," he says.