SANF 25 no 3 by SARDC Writers*
Angola is on the verge of a transformative economic milestone as it nears finalisation of its membership in the Southern African Development Community Free Trade Area.
This significant step, marked by recent discussions at a Trade Negotiating Forum (TNF) held from February 17 to 21 in Luanda, is expected to enhance regional trade and foster deeper economic integration among member states.
As the 14th country to join the SADC Free Trade Area (FTA), Angola’s accession represents a pivotal moment not only for itself but also for the entire Southern African region.
The SADC FTA was officially launched in 2008, with the primary goal of promoting intra-regional trade through the elimination of tariffs and non-tariff barriers among participating countries.
The FTA is presently being implement by 13 of SADC’s 16 member states, creating a market of over 280 million people and facilitating duty-free trade on at least 85 percent of goods.
The SADC FTA members are Botswana, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic of Tanzania, Zambia and Zimbabwe.
The Democratic Republic of Congo and Comoros are yet to join the SADC FTA.
By joining the SADC FTA, Angola stands to benefit immensely from reduced trade costs, improved market access, and greater regional cooperation, which are crucial for stimulating local industries, diversifying exports, and attracting foreign investment.
Dhunraj Kassee, Director of Industrial Development and Trade at the SADC Secretariat, underscored the strategic importance of Angola’s entry into the FTA.
“This accession unlocks immense economic opportunities. It will promote smoother trade within the region by reducing tariffs and eliminating non-tariff barriers,” Kassee said.
Such measures are expected to facilitate greater movement of goods across borders, ultimately leading to enhanced competitiveness among businesses operating within these markets.
Angola, one of Southern Africa’s largest economies, has traditionally relied on its oil exports, which constitute over 90 percent of the country’s foreign exchange earnings.
However, diversification efforts have gained momentum in recent years, with agriculture, fisheries and manufacturing emerging as key sectors.
Membership in the SADC FTA will accelerate these efforts by opening up Angola’s products to a larger regional market while also allowing cheaper imports of essential goods and inputs.
The significance of Angola’s accession extends beyond the SADC region, aligning closely with broader continental integration efforts such as the Tripartite Free Trade Area (TFTA) and the African Continental Free Trade Area (AfCFTA).
The TFTA, launched in 2015, seeks to integrate SADC, the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) into a single trading bloc, covering 27 countries with a combined population of over 650 million people and a gross domestic product (GDP) exceeding US$1.3 trillion.
Beyond the TFTA, the AfCFTA, which became operational in 2021, represents Africa’s most ambitious economic integration project, bringing together 54 countries to create the largest free trade area in the world by number of participating states.
With a combined market of more than 1.4 billion people and a GDP of over US$3.4 trillion, the AfCFTA aims to boost intra-African trade by over 50 percent through tariff eliminations and harmonised trade policies.
Angola’s participation in the SADC FTA is set to strengthen its position within AfCFTA, providing Angolan businesses with expanded access to new markets across Africa while simultaneously boosting investment prospects throughout Southern Africa.
The TNF sessions that led up to this critical development were supported by international development partners, including the Germany Federal Ministry for Economic Cooperation and Development (BMZ) and co-financed by the European Union via GIZ under their Cooperation for Enhancement of SADC Regional Economic Integration (CESARE) programme.
Kassee expressed optimism about the formal endorsement of Angola’s accession during upcoming meetings scheduled for May and June 2025, involving both TNF participants and ministers of trade from SADC member states.
Successful ratification would pave the way for full implementation of agreements aimed at enhancing regional cooperation, including trade facilitation measures, harmonisation of customs procedures and infrastructure development to support cross-border trade.
For other SADC members, Angola’s accession means improved market access, an opportunity that could drive economic growth across various sectors, including agriculture, manufacturing and services.
Enhanced connectivity between nations can lead to increased consumer choices, job creation and industrial expansion, all aligned with SADC Treaty objectives focused on poverty alleviation and improving living standards throughout the region.
As Angola prepares to finalise its membership in the SADC FTA, anticipation builds around how this move will reshape trade dynamics within Southern Africa.
With Angola’s vast resources, growing industrial base and strategic location along the Atlantic coast, its integration into the SADC trade network is expected to bolster regional value chains, strengthen economic resilience and enhance Africa’s global trade competitiveness.
This milestone, therefore, marks not just an economic transition for Angola but a significant step forward for Southern Africa’s broader trade ambitions, bringing the region closer to a fully integrated and competitive African market. sardc.net
