SA’s manufacturing outlook at all-time low

- Manufacturing activity in South Africa has contracted for the 14th consecutive month, According falling to the to AU, its lowest levels the remaining since work 2009. for the The sector has AfCFTA also is for recorded the AU and its worst outlook African ministers score of yet, trade with to figures below finalize work the lowest on supporting reading recorded instruments during to facilitate the the 2008/09

launch of the operational global recession.

phase of the AfCFTA during an extra-ordinary heads of state and government summit on July 7.

These instruments include rules of origin, schedules of tariff concessions on trade in goods, online non-tariff barriers monitoring and elimination mechanism, digital payments and settlement platform and

African Trade Observatory Portal.

Permanent Secretary of Rwanda’s Ministry of Trade and Industry Michel Minega Sebera said the implementation can’t be effective before negotiations on some key implementing instruments, including rules of origin and tariff concessions are completed.

Despite the fact that the required 22 ratifications for the AfCFTA agreement to enter into force have been reached, the rest of African countries should join for its subindex, the headline PMI would have turned out lower in March.

“Indeed, the business activity and new sales orders indices lingered around 11-year low levels in March. The nationwide lockdown imposed towards the end of March meant that most factories lost three working days compared to a normal March, while the 21-day lockdown will result in 10 working days lost in April.

“Supply-chain disruptions mean that production is also not expected to return to full capacity immediately after the lockdown lifts. This suggests that the April factory figures will likely show a deep contraction,” read the PMI report.

Should government consider an extension of the lockdown, this will likely result in some

March, below the lowest reading recorded during 2008/09 global recession.

“In fact, very (it’s) important the lowest to the level

implementation, the official on record series since 1999.

said. Strong governments This means the worst is yet

are necessary to ensure to come the for implementation, the manufacturing said sector,” Enock wrote Twinoburyo, the researchers. Senior Economist at the Sustainable Development Goals Center for Africa based in Kigali, capital city of Rwanda, noting that political challenges or political pressures in different countries lately will affect the implementation.

Poor infrastructure, non- tariff barriers to protect local industries and funding constraints for transition of the AfCFTA could also affect the implementation of the AfCFTA, said Twinoburyo.

The AfCFTA is regarded as the world’s largest free trade zone by the number