Africa Must Reduce Dependence on External Markets, Says Minister Lamola

Cape town: International Relations and Cooperation Minister Ronald Lamola has emphasized the urgent need for Africa to accelerate regional integration and boost intra-African trade to protect the continent from external economic shocks and geopolitical instability. Delivering the 2026/27 Budget Vote for the Department of International Relations and Cooperation (DIRCO) in Parliament, Lamola highlighted that South Africa's foreign policy remains focused on advancing the interests of the African continent.

According to South African Government News Agency, Lamola pointed out Africa's heavy reliance on external markets, which makes the continent vulnerable to global disruptions. He stressed that the African Continental Free Trade Area (AfCFTA) offers a potential common market valued at 3.4 trillion US dollars, providing a pathway to diversification, reduced dependency on external markets, and greater economic resilience.

Lamola noted that intra-African trade remains low, accounting for just 16% of the continent's trade and 21% within the Southern African Development Community (SADC), compared to 68% in Europe and 59% in Asia. He expressed concern that over 50 percent of Africa's imports and exports are linked to only five economies outside the continent, highlighting the continent's vulnerability to external shocks and the necessity for moving regional integration from aspiration to implementation.

As Chair of the African Union Ministerial Committee on the Follow-up and Implementation of Agenda 2063, Lamola stated that South Africa is dedicated to accelerating the continent's development agenda. He also underscored the strategic importance of SADC, emphasizing the region's need to prepare for future crises and economic disruptions.

Lamola reflected on a recent retreat with SADC Ministers of Foreign Affairs in Skukuza, Kruger National Park, where discussions focused on geopolitical developments affecting the region. The ministers agreed on the need for SADC to be better prepared for external shocks arising from various sources, including conflict, climate disasters, and public health emergencies.

He highlighted Southern Africa's vast mineral wealth, noting that the region possesses 30 percent of the world's proven critical mineral reserves, including significant portions of cobalt, graphite, and copper reserves. Proper management of these resources could drive industrialization and economic transformation.

Looking ahead to South Africa's full chairship of SADC in August 2026, Lamola outlined priorities such as strengthening political cohesion, consolidating the SADC Free Trade Area, reducing non-tariff barriers, and building regional value chains in strategic sectors like agro-processing and pharmaceuticals.

Lamola also reaffirmed South Africa's commitment to peacebuilding efforts in regions like the eastern Democratic Republic of Congo and South Sudan, emphasizing diplomacy, mediation, and regional solidarity as key components of South Africa's responsibility on the continent.

For the 2026/27 financial year, the Department of International Relations and Cooperation has been allocated R7.227 billion, underscoring the government's commitment to these strategic objectives.

Search

Search

Advertisement

Recent Posts

Advertisement