Cape Town: Member of the Mayoral Committee for Economic Growth and Tourism – James Vos made a compelling case for an open skies policy, at the African Continental Free Trade Area (AfCFTA) Conference.
It expedited private sector involvement in Port of Cape Town operations and a streamlined visa system. The initiatives are crucial for South Africa to unlock trade opportunities and create a more business-friendly environment.
Reportedly, the conference held at the Durban International Convention Centre, brought together trade experts, civil society representatives and leaders from both the private and public sectors to explore ways to integrate SMMEs into AfCFTA.
The conference has covered 1.3 billion people, with a combined GDP of $3 trillion, where AfCFTA stands as the world’s largest free trade area by population.
Alderman James Vos enlightened that only 16% of African trade occurs within the continent, compared to 63% in Europe and 55% in Asia. AfCFTA has the potential to boost production and the movement of African-made goods, that leads to faster, inclusive economic growth and employment for millions of Africans.
He highlighted that the thriving industries of Cape Town included its status as a leading destination for global call centres and the top city worldwide for luxury offshore catamaran production, as well as its growing sectors in clothing production, green technology manufacturing and the food and beverage industry.
He added further that this success is largely due to the city government that targeted efforts to support skills development, investment facilitation and investing in key infrastructure such as energy, water, mobility and safety.
Alderman Vos also spotlighted Cape Town’s robust enterprise development, the initiatives which are designed to empower SMMEs with market access and growth opportunities.
He added that through these programmes, they have supported thousands of entrepreneurs. Vos mentioned that the Business Hub team handled more than 3,700 inquiries and hosted 104 workshops alone, last year in 2023.
“We also back the Cape Trade Portal which is administered mainly by Wesgro. It is a digital marketplace that connects Cape-based exporters with the global buyers and provides essential training and resources,” added James Vos.
While sharing the recent successes Vos said that as the Made in the Cape Expo, that connected 420 exporters with buyers from 23 countries, including Ghana, the USA and France. Additionally, the Invest Cape Town Centre at City Hall was launched to spotlight the local products and businesses.
Despite these efforts, Vos stressed that substantial economic and employment growth hinges on the efficient operation of key systems and structures.
He also emphasised that Transnet must expedite private sector involvement in the port operations and the development and maintenance of a liquid bulk terminal at the Port of Cape Town. The performance of the port impacted a diverse range of critical products from agricultural goods to high-value exports like wine, agriculture products and seafood.
Alderman Vos also called on the National Government to fulfil its commitment to the Single African Air Transport Market, an African Union initiative promoting trade, travel and connectivity through open skies.
A decade ago, the International Air Transport Association reported that if 12 key African countries, including South Africa that opened their markets and increased connectivity, it would generate an additional 155,000 jobs and $1.3 billion in annual GDP.
James Vos highlighted the urgent need for an effective visa system to facilitate the trade of services under AfCFTA. He added, “I will continue to engage with the new Government of National Unity to diligently pursue politics that drive the economic growth South Africa desperately needs.”