Xenophobia ‘puts SA on back foot in trade talks’
The recent spate of xenophobic attacks on foreign nationals and foreign-owned businesses could have put SA in a defensive position in the ongoing negotiations of the African Continental Free Trade Agreement (AfCFTA), says Wamkele Mene, the country’s former chief negotiator.
Mene was speaking on Thursday at a panel discussion on the AfCFTA hosted by law firm Herbert Smith Freehills and Business Unity SA (Busa).
The AfCTA, which became operational in July, promises to promote the free movement of goods and services across the continent and increase intraAfrica trade, which currently sits at a low 16%.
“It may place us in a defensive position in the negotiation room itself and send a signal that we are not committed to the integration of Africa,” said Mene.
“As a country, we are going to have to work very hard to counter the likelihood of that.”
He said SA should take the lead on improving the ease of movement of business people across borders on the continent by, for example, introducing a trade visa.
Global trade arrangements on services under the World Trade Organisation, which SA is party to, already make provision for the movement of business people.
SA can replicate this in the context of the AfCFTA to demonstrate its commitment to the continent, he said.
Recent violence has put strain on SA’s relationship with its continental counterparts, particularly the likes of Nigeria one of Africa’s largest economies. The issue of protection of foreigners and their businesses was also raised on Thursday in bilateral talks between two countries.
President Cyril Ramaphosa met his Nigerian counterpart Muhammadu Buhari, who is in SA on a state visit.
In a statement on Thursday, the president recommitted to the work of the AfCFTA, which he called a “once in a generation opportunity” to achieve the vision of a unified African economy.
The AfCFTA, which has been ratified by 27 African countries, comes at a time when global trade tensions, driven by leaders such as US President Donald Trump, have sparked concern that the world is facing another global recession.