South Africa and the AfCFTA: a strategic opportunity to lead Africa’s Iindustrial future

The African Continental Free Trade Agreement (AfCFTA), launched in 2021, offers a once-in-a-generation opportunity to unite 54 nations into a thriving common market, igniting an African industrial revolution with the  potential to echo across global trade systems.

For South Africa, often regarded as the continent’s economic  engine, this is a pivotal moment to lead with intention, conviction and pride.

As global powers set their sights on Africa’s critical mineral reserves, lithium, cobalt and a demographic advantage expected to represent  nearly 40% of the world’s population by 2060, the AfCFTA provides a path toward prosperity on our own terms.

“Africa isn’t just rising; it’s ready to lead,” declared IMF Managing Director Kristalina Georgieva. This leadership,  however, will depend not on rhetoric but on execution—on the collaborative efforts of private enterprise, public  governance, youth innovation and policy clarity. 

The global economy is in flux. Fragile supply chains, shifting alliances and the race for sustainable and digital  industrialisation have left gaps that Africa is well-positioned to fill. The AfCFTA connects our fragmented  markets, forming an economic bloc with a combined GDP of over US$3.4 trillion.

This isn’t just theoretical.

The  World Bank estimates that the AfCFTA could lift 30 million people out of extreme poverty and increase incomes  across the continent by 7% by 2035. South Africa, with its minerals, manufacturing base, financial systems and technology ecosystem, is uniquely placed to drive this transformation—if we act with urgency and unity. 

Yet, as with any ambitious journey, the road ahead is not without obstacles. Infrastructure remains a stubborn  barrier. Port delays in Durban, underinvestment in rail freight and overburdened roads in Gauteng undermine  our competitiveness.

Skills shortages further limit our readiness—too many South African youth remain locked  out of opportunities in advanced manufacturing, green energy and digital industries.

Our trade systems still operate on outdated protocols, creating friction where there should be seamless integration.

But these  challenges also represent levers for change. Imagine the private sector investing in a new tech hub in Cape  Town or retraining programs for miners to pivot into solar energy installation. Envision the public sector  renewing infrastructure investment with an eye toward interconnectivity, resilience and export readiness.  

Policymakers could streamline customs procedures and harmonize regulations to support small and medium  enterprises (SMEs) in crossing borders with ease. According to UNECA, integrating South African steel into  regional automotive value chains could boost jobs, GDP and productivity simultaneously.

We are not starting from scratch. Our foundations are solid. Political and macroeconomic stability, strong  financial institutions and a globally integrated business sector already make South Africa a regional anchor. 

Botswana’s sustained growth and fiscal prudence show that sound governance attracts long-term investment— South Africa should take heed. We must root out corruption and waste, not only for ethical reasons but as a  fundamental enabler of competitiveness.

We must reimagine our public expenditure: financing education that  prepares youth for future jobs, building roads and broadband networks that connect to regional trade corridors and expanding energy generation to support manufacturing growth.

Most importantly, we must invest in linking  our economies: South Africa’s mineral processing expertise can complement Kenya’s agribusiness, Egypt’s  textiles and Ghana’s digital payment systems. In this vision, Africa doesn’t trade raw commodities—it trades  finished goods, driven by intra-African value chains. 

Leadership must be shared and inclusive. Private sector players—think Sasol, MTN and Johannesburg’s agile  tech startups, must move from national champions to regional operators. Governments must collaborate, not  compete, to build aligned regulations, joint infrastructure and data-sharing protocols. Our youth, projected to  be the largest population group on the planet by 2060, must be empowered not just as beneficiaries, but as co creators.

M-Pesa in East Africa is one example of youth-led disruption that scaled across borders. South Africa  has the people, the institutions and the industrial base to spark this type of innovation on a continental scale.

Global development partners also have a role—through funding, technology transfers and capacity-building— but must act as enablers, not decision-makers. Our future must be designed in Africa, by Africans. 

History is watching.

The AfCFTA could define the next 50 years of African development. If we seize this  moment, we will see factories rise from Soweto to Nairobi, powering global markets while improving lives. Our  youth could thrive as skilled entrepreneurs and engineers, rather than be statistics of unemployment or  migration. But if we hesitate, the consequence is familiar: raw resources shipped out, jobs lost and sovereignty weakened by dependency.

The African Development Bank projects that trade-led industrialization could  significantly reduce poverty—but only if supported by coherent strategy and implementation. 

To this end, a concrete and implementable initiative could be the formation of a South Africa-led AfCFTA Task  Force within six months.

This task force—comprising business leaders, ministers, economists and youth  representatives—would be mandated to identify and operationalize one regional trade value chain and one  cross-border skills hub by 2027. This is not another think tank.

It is a vehicle for tangible outcomes—pilot  projects, streamlined logistics, fast-tracked skills development and model partnerships. It would ensure South  Africa’s leadership is not just symbolic, but structural. 

The AfCFTA is not a distant dream—it is already law. What remains is to animate it with leadership, investment and vision. South Africa’s moment is now. Let us rise with purpose, not just for ourselves, but for the continent  that looks to us for inspiration, coordination and courage. If we succeed, Africa will not only rise—it will lead. 

Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa. 

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