South Africa must adopt an open skies policy and expedite private sector involvement in the Port of Cape Town’s operations to unlock trade opportunities and create a more business-friendly environment.
This was the case City of Cape Town Mayoral Committee Member for Economic Growth, James Vos, put forward during the African Continental Free Trade Area (AfCFTA) Conference in Durban this week.
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. Encompassing 1.3 billion people with a combined GDP of $3 trillion, 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,” Vos said.
He highlighted Cape Town’s thriving industries, including its status as a leading destination for global call centres and for luxury offshore catamaran production, as well as its growing clothing production, green technology manufacturing and food and beverage industries.
“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,” Vos said.
He also spotlighted the city’s robust enterprise development initiatives designed to empower SMMEs with market access and growth opportunities.
“Through these programmes, we have supported thousands of entrepreneurs. Our Business Hub team handled over 3700 inquiries and hosted 104 workshops last year. We also back the Cape Trade Portal administered by Wesgro,” he said.
The portal is a digital marketplace that connects Cape-based exporters with global buyers and provides training and resources.
Vos said the ‘Made in the Cape Expo’ had connected 420 exporters with buyers from 23 countries, including Ghana, the US, and France, while the Invest Cape Town Centre has been launched to spotlight local products and businesses.
However, 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,” Vos said.
He 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 bn in annual GDP.”
He added that there was also an urgent need for an effective visa system to facilitate the trade of services under AfCFTA.
