The African Continental Free Trade Area reduces tariffs between participating African countries, phased in over time rather than switched on at once. For a South African business the practical effect is that exporting to other African markets becomes cheaper in duty terms, while the things that actually make exporting difficult remain largely unchanged.
Understanding which is which prevents disappointment.
What changes
Tariffs on qualifying goods traded between participating countries reduce progressively, which lowers the landed cost of your product in those markets and makes you more competitive against non-African imports.
Rules of origin determine whether your product qualifies, and they are specific: the goods generally must be produced or substantially transformed within the area. Simply repackaging imported product will not qualify.
What does not change
Border delays, documentation requirements, differing standards and certification between countries, payment friction and transport cost all remain. These are usually the larger practical obstacles for a small exporter.
Cross-border payments in particular stay slow and expensive, routing through intermediary banks and requiring exchange control documentation. Tariff reduction does not touch any of that.
How to prepare
Pick one target market rather than the continent. Compliance, labelling, certification and distribution all have to be solved market by market, and doing one properly beats attempting several.
Establish your route to market early: distributor, agent or direct. Register your trademark in the destination market before launching, since rights are national and registering after a distributor has done so is considerably harder.
Where the support is
Exporters must be registered for customs purposes, and cross-border transactions require documentation under exchange control. Confirm requirements with the South African Revenue Service before the first shipment.
Export promotion, market access assistance and subsidised participation in trade exhibitions are available through the Department of Trade, Industry and Competition, and are consistently underused by small exporters.
Frequently asked questions
What does the free trade area actually change?
Tariffs on qualifying goods between participating African countries reduce progressively, lowering your landed cost in those markets.
Do all my products qualify?
Only those meeting rules of origin, generally requiring production or substantial transformation within the area. Repackaging imports does not qualify.
What remains difficult?
Border delays, documentation, differing standards, transport cost and slow expensive cross-border payments.
How should a small business approach it?
One target market at a time, solving compliance, labelling, certification and distribution properly before adding another.
What should I secure before launching abroad?
Trademark registration in that market, since rights are national and registering after a distributor has is much harder.
Further reading
Originally published in July 2018. Updated September 2026 to explain what the African free trade area means for a small business.
