Faizel Ismail on the investment case for Africa

The Department of Trade and Industry recently held an Economic Policy Dialogue to discuss policies focusing on the African Continental Free Trade Area. CNBC Africa's Karabo Letlhatlha engaged in a conversation with Dr. Faizel Ismail, the Director of the Nelson Mandela School of Governance, to delve into the investment case for Africa. Despite Africa currently holding only a 3% share of world trade, its burgeoning population is expected to make it the most populous continent by 2050. Notably, Africa boasts six of the world's ten fastest-growing economies, with an average growth rate of around 5% over the past 15 years. This growth has piqued the interest of global investors, including active South African investors. Dr. Ismail, an experienced figure in global trade, shed light on the African Continental Free Trade Agreement and its implications for the continent's regional trade blocs. He highlighted the agreement's goal of harmonizing existing trade arrangements across Africa and emphasized that it aims to complement, rather than replace, regional integration efforts such as Sadek, EAC, and Comesa. The interview also explored how the rise of populist sentiments and the backlash against globalization, exemplified by events like Brexit and the 'America First' rhetoric, impact Africa's integration agenda. Dr. Ismail emphasized the need for African countries to learn from these global developments and prioritize inclusive growth and trade relationships to navigate potential challenges effectively. As Africa gears up for the African Continental Free Trade Agreement to come into effect in July next year, managing these complexities will be crucial for maximizing the continent's economic potential.