The Effectiveness of South African SMME’s in the Africa Continental Free Trade Area – Agenda 2063

Abstract

The African continental Free Trade Area (AfCFTA) was created in 2018 to stimulate trade related activities in the African continent. However, with the negative impact felt on African economies during the Covid pandemic, it is urgent that, African countries should have a common position that allows them to boost their economies through trade activities while considering to review their policies on tariff barriers and other protectionism measures that could weakened the objectives set by AfCFTA . To boost local economies, African countries should encourage the creation of Small, Medium and Micro Enterprises (SMMEs) to contribute to economy growth. SMME,s  play an important role in the economy of South Africa (SA).  These SMMEs are integrated into the National Development Plan (NDP) as critical components for advancing growth and development. The government applauds and supports SMMEs for their ability to create jobs, innovate, and compete. Greater competition and broader regional trade integration are required for South Africa to restart its export engine and promote growth that would help create jobs and reduce poverty. Given this context, the study seeks to evaluate the opportunities for South African Small, Medium, and Macroeconomic Enterprises (SA-SMMEs) in the Africa Continental Free Trade Area (AfCFTA). Once these objectives are met , SMME’s in South Africa will positively contribute to socio economic development through economic growth.