From January 1, 2021, The African continent uses an agreement that stimulates trade on the continent. The African Continental Free Trade Agreement (AfCFTA) will enhance trade integration on the African continent.
The agreement is signed by 54 of its 55 African Union member states and requires its members to remove 90% of its tariffs from goods, allowing duty free access to commodities and services across the African continent.
It is estimated that the AfCFTA agreement will increase intraAfrican trade by 53% through eliminating import duties and nontariff barriers. Before the commencement of the agreement, it was difficult to move cargo across the borders.
Trading under the agreement commenced on 1 January 2021. The South African Revenue Service (SARS) has updated its tariff management system to cater for reduced rates of duties and is currently completing further arrangements required to implement the agreement.
Exporters and producers/ manufacturers will have to register with SARS to participate in the AfCFTA, even if already registered for Customs & Excise.