South Africa and Lesotho are strengthening their trade relationship, particularly in the agriculture, automotive, and clothing sectors. Recent discussions in Pretoria emphasized the potential for mutual growth, job creation, and increased investment.
The two countries are focusing on enhancing their trade ties amid a changing global trade landscape that could affect their economies. Representatives from South Africa's Department of Trade, Industry, and Competition and Lesotho's Ministry of Trade, Industry, and Business Development convened in Pretoria to explore ways to improve collaboration in these key sectors.
This meeting provided an opportunity for both nations to identify how they can support each other and capitalize on opportunities that will create jobs and nourish their populations.
The discussions followed a week-long study mission by the Lesotho government focused on establishing a regulatory framework for indigenous plants and a strategy to utilize trade agreements, such as the Southern African Development Community (SADC)-European Union (EU) Economic Partnership Agreement. Various stakeholders shared their experiences on effectively leveraging trade agreements to foster growth and development.
Commitment to Strengthening Trade Relations
Ambassador Xolelwa Mlumbi-Peter, the deputy director-general of trade at the Department of Trade, Industry, and Competition, emphasized the importance of sharing strategies for building resilience in light of significant changes in global trade. She noted that such collaboration is timely and can enhance the region's economic stability.
The two parties also agreed to strengthen collaboration on standards and cross-border value chains in specific sectors, including automotive, clothing, cannabis, fruits and vegetables, and meat products.
"We appreciate the commitment between our two countries to work together in diversifying production and utilizing trade agreements that the Southern Africa Customs Union (SACU) is part of, which offer a solid foundation for accessing global markets," she stated.
According to the department, the visit from the Lesotho representatives follows the signing of a memorandum of understanding (MoU) on economic cooperation, which was negotiated and signed by the trade and industry ministers from both sides during the Bi-National Commission (BNC) earlier this year.
"The Memorandum of Understanding (MoU) provides an excellent foundation for enhancing cooperation between the two countries and encourages the sharing of experiences to foster mutually beneficial trade and investment relations," stated the department. The meeting also emphasized the importance of prioritizing the implementation of the African Continental Free Trade Area (AfCFTA) and collaborating to finalize outstanding negotiations.
