THE NATIONAL ASSEMBLY
QUESTIONS FOR WRITTEN REPLY
2967. Mr L S Ngonyama (Cope) to ask the Minister of Trade and
Industry:
Whether his department has any plans in place to stimulate intra-
continental trade in Africa; if not, why not; if so, what are
the relevant details? NW3443E
Response:
the dti pursues a range of activities to promote intra-continental
trade in Africa. We have advanced this agenda in the context of a
development integration approach to regional integration which
combines market integration, cross-border infrastructure and policy
coordination, particularly in the areas of regional industrialization
and economic diversification that could build the production capacity
in regional economies. These efforts have taken forward in SACU, SADC
and, more recently, in the Tripartite Initiative between SADC, the
East African Community (EAC) and COMESA.
In SACU, the work programme on regional industrial development has
focused on building an overall policy framework for regional
industrialisation, alongside the identification of specific areas of
collaboration and interventions to build cross-border, complementary
value chains. Areas of possible collaboration have been identified
including agro-processing, automotive and component manufacturing,
clothing, and mineral beneficiation, amongst others. SACU is also
working on on trade facilitation is lead by our respective customs
authorities to reduce transaction costs and speed up transit of goods
and services across SACU internal borders. We will also identify cross-
border âhardâ infrastructure projects in such areas as transport and
communications to link the economies of the SACU Members States more
closely.
SADC is a free trade area in which 80% of products are trade duty
free. Our current work programme focuses on facilitating cross border
trade by reducing transaction costs at border posts and removing non-
tariff barriers. Work in SADC has also included establishing one-stop
border posts. Significant progress has been registered at the border
crossing between South Africa and Mozambique, and work is beginning to
on the border crossing between South Africa and Zimbabwe. In 2007,
SADC adopted the Industrial Upgrading and Modernization Programme
(IUMP) with an implementation plan and action plan. The IUMP is to be
implemented in two phases: support for upgrading and improving
competitiveness in industries; and establishment/upgrading of
technical support institutions.
Under, the SADC-EAC-COMESA Tripartite Initiative, the recent Summit
held in South Africa on 12 June 2011 launched free trade negotiations
among the member States. South Africa has been requested to champion
work on the North-South Corridor which will rehabilitate and upgrade
road and rail infrastructure from DRC, through Zambia and Zimbabwe to
South Africa, alongside a series of feeder transport links.
Significant upgrades on road and rail has been registered. The Summit
issued a directive to initiate work on building production capacity
across member states. A work programme in this area is being
developed.
South Africa also provides technical and financial support to a range
of spatial development initiatives (SDIs) across Southern Africa. This
support aims to leverage the regionâs significant resources endowment
to build cross border transport infrastructure and catalyse wider
economic development as an integrated package of projects and
programmes. Our current efforts involve projects in Angola, Namibia,
Mozambique, Tanzania, DRC and Congo.