January 1 saw the introduction of a fifth preferential rates of ordinary customs duty column in Schedule No 1, Part 1, of the South African Customs and Excise Act, 1964.

It adds to the European Union, the European Free Trade Association, the Southern African Development Community (SADC) and Mercosur (Common Market of the South, the South American regional economic organisation), comprising 45 countries. Taking into account the UK, with its Economic Partnership Agreement, the total increases to 46.

The customs duty schedule comprises 99 tariff chapters providing for preferential ordinary customs duty access. However, preferential access only applies if rules of origin provisions – contained in Annex II of the African Continental Free Trade Area (AfCFTA – are adhered to.

This begs the question as to how many AfCFTA countries it applies to? Well, there are 55 countries, but it applies to two countries only – two non-SADC countries, Egypt and São Tomé and Príncipe, but it is being phased in over a five-year period.

Then, there is another consideration. The AfCFTA’s ordinary rate of customs of duty will be suspended if the following conditions to the Southern African Customs Union (Sacu) offer are not met: reciprocity from partners on overall tariff coverage and phase-down periods; the five-year phase-down period to developing countries is reciprocated; least- developed countries have a phase-down period not exceeding ten years; the phase-down proposed by customs unions that include developing-country members is reciprocated; and where offers are not made effective on January 1, including by retrospective application, the opening of the Sacu market will be aligned to the implementation date of the trading partner, subject to technical scrutiny of that offer.

Evidently, there is not much here at this point in time. Exactly when will this be a free trade agreement of substance?

As of December 5, only 34 countries had deposited their instruments of ratification, namely Ghana, Kenya, Rwanda, Niger, Chad, eSwatini, Guinea, Côte d’Ivoire, Mali, Namibia, South Africa, Congo Republic, Djibouti, Mauritania, Uganda, Senegal, Togo, Egypt, Ethiopia, Gambia, Sahrawi Arab Democratic Republic, Sierra Leone, Zimbabwe, Burkina Faso, São Tomé and Príncipe, Equatorial Guinea, Gabon, Mauritius, Central African Republic, Angola, Lesotho, Tunisia, Cameroon and Nigeria. Of these countries, seven are SADC members, which essentially leaves only 27 countries and, taking off Egypt and São Tomé and Príncipe, that leaves 25 countries. Another obvious question: Which of the 25 countries would benefit from South Africa’s economic growth?

I take my leave reminding you of the lofty objectives of the AfCFTA, which are to create a single market for goods and services, facilitated by movement of persons, to deepen the economic integration of the African continent and in accordance with the Pan African Vision of ‘An integrated, prosperous and peaceful Africa’ enshrined in Agenda 2063; to create a liberalised market for goods and services through successive rounds of negotiations; to contribute to the movement of capital and natural persons and facilitate investments, building on the initiatives and developments in the State Parties and regional economic communities; to lay the foundation for the establishment of a continental customs union at a later stage; to promote and attain sustainable and inclusive socioeconomic development, gender equality and structural transformation of the State Parties; to enhance the competitiveness of the economies of State Parties to promote industrial development through diversification and regional value chain development, agricultural development and food security; and to resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.