3PL/Logistics

According to Trade & Industry Minister Rob Davies, the possibility of a Free Trade Zone that would include 26 Eastern and Southern African countries could be tabled in South Africa by mid-2011.

The ‘Cape to Cairo' FTZ would require the collaboration of the Common Market for Eastern & Southern Africa (COMESA) and the East African Community (EAC).

Davies pointed out that a big regional market such as this would stimulate growth, referring to India as an example, saying growth in its domestic market was originally the catalyst for India's economic growth. He also noted that the Dept of Trade & Industry was busy negotiating with India about the possibility of a preferential trade agreement.

The establishment of an FTZ would help to increase intra-Africa trade Currently, only 12% of African trade is intra-regional.

The establishment of a massive FTZ poses a few challenges.

One of these challenges is the acceleration of the development of infrastructure in South Africa's neighbouring countries, particularly in terms of transport Another is for African countries to add value to their exports.