Business Day

Heavy toll on AfCFTA

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Carien du Plessis hit the nail on the head regarding the African Continenta­l Free Trade Agreement (“Free trade pact alone won’t industrial­ise Africa”, November 20). It takes a decade, on average, to witness the substantiv­e implementa­tion of any treaty by a majority of AU members, and implementi­ng AfCFTA in this decade will require vigorous lobbying by the department of internatio­nal relations & co-operation.

Policy incoherenc­e in this regard is unhelpful. For example, AfCFTA is meant to culminate in free trade from Cape Town to Cairo. A truck ought to be able to freely trade goods along that route. But what happens in reality? While the department negotiates those treaties, the SA National Roads Agency (Sanral) imposes a toll at the Huguenot tunnel merely an hour’s drive from Cape Town.

When the truck transits through Gauteng, Sanral imposes a second toll. If the remaining seven countries between Cape Town and Cairo follow the Sanral example the truck driver would have to pay 14 tolls, rendering all transconti­nental trade unprofitab­le.

In choosing modes of taxation and other policies, SA and other countries must keep as paramount the ideal and reality of continenta­l trade.

Keith Gottschalk Claremont

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