Intra-Africa trade has risen from 12% in 2013/14 to 17% - but while South African trade and investment in Africa is increasing, much more is needed.
This was one of the key takeaways from a Gauteng Growth and Development Agency (GGDA) Thought Leadership Forum discussion held in Sandton this morning (Tuesday) where GGDA board member, Stravros Nicolau, pointed out that improved trade with Africa could be one of the “trigger points” that could help South Africa turn its growth strategy around.
“South Africa is currently looking at a less than 1% growth rate this year and is facing an imminent rating downgrade – which could further impact foreign direct investment (FDI) inflows. We need to increase our growth about fivefold to turn our economic prospects around - and focusing on African trade is a good place to start,” he said.
Graham Thompson, Africa knowledge leader for Ernst and Young (EY), commented that one of the major barriers to South Africa trading with the rest of the continent was that African countries, including South Africa, traded mostly in commodities.
“Our trading options with each other are therefore quite limited. However, a global slump in commodity prices has forced us to look at improved industrialisation on the continent as well as the need to support small businesses, especially those with production capabilities,” he said.
