StanChart’s Onyebuchi Memeh speaks on SA’s trade potential in the AfCFTA

Standard Chartered's Head of Trade for South Africa and Southern Africa, Onyebuchi Memeh, recently discussed the trade potential of South Africa within the context of the African Continental Free Trade Agreement (AfCFTA). Memeh highlighted South Africa's significant role in the AfCFTA due to its current account surplus and trade surplus, which bode well for the country's economic growth prospects. He emphasized the importance of inter-African trade, noting that South Africa holds 32% of the market share in Africa's trade. With the implementation of the AfCFTA, South Africa, with its advanced customs infrastructure and physical advantages, has a tremendous opportunity to further enhance its trade relationships within the continent. Memeh also touched upon the policy reforms needed to attract more foreign direct investment (FDI) into South Africa. He mentioned that ensuring a sustainable energy supply through the ESCO (Energy Service Company) framework, improving soft infrastructure like labor and immigration, and aligning with the AfCFTA's free movement of people agreement are crucial steps. Additionally, capacity building for small and medium enterprises (SMEs) and the digitalization of the economy are essential for attracting FDI. In terms of opportunities and risks, Memeh highlighted the potential for South Africa to lead in e-commerce and digitalization, given its advancements in artificial intelligence and blockchain technologies. However, he acknowledged the challenges posed by power shortages in the country. Memeh emphasized the need for policy makers to prioritize policy reforms that address these risks and capitalize on the opportunities presented by the evolving digital economy. Overall, Memeh expressed optimism about South Africa's trade potential in the AfCFTA and the opportunities for growth and development that lie ahead. He underscored the importance of proactive policy reforms and strategic initiatives to leverage South Africa's strengths and navigate the challenges in the evolving global trade landscape.