Parliament, Thursday, 11 June 2026- The Select Committee on Economic Development and Trade received a briefing yesterday from the Department of Trade, Industry and Competition on the Memoranda of Understanding on Economic Cooperation concluded between South Africa and the governments of Algeria, Lesotho and Mozambique.
The committee welcomes initiatives aimed at strengthening economic cooperation across the African continent and advancing the objectives of regional integration and the African Continental Free Trade Area. At a time when South Africa faces slow economic growth, high unemployment and increasing pressure to diversify export markets, strengthening economic ties with strategic African partners remains an important component of unlocking growth and creating opportunities.
These agreements provide a framework for enhanced cooperation in trade, investment, industrial development, infrastructure, skills development and private-sector collaboration. They also create opportunities to improve market access for South African businesses and support the development of regional value chains that can contribute to sustainable economic growth.
The agreement with Algeria is of particular significance given the potential opportunities for cooperation in manufacturing, automotive value chains, infrastructure development and broader access to North African markets. The agreements with Lesotho and Mozambique further strengthen South Africa’s economic integration within the Southern African region and reinforce existing trade and investment relationships with two important neighbouring countries.
The committee further emphasised that economic cooperation agreements must move beyond diplomatic intent and translate into practical outcomes. South Africans must see evidence of increased trade, investment, industrial expansion and job creation flowing from these agreements.
The success of these agreements will ultimately be measured by their implementation and tangible benefits they deliver to businesses, workers and communities.
The committee therefore highlighted the importance of effective implementation mechanisms, measurable performance indicators and regular reporting to ensure that commitments contained in these agreements are translated into meaningful economic outcomes. Increased exports, expanded market opportunities, new investment projects and sustainable job creation should remain central objectives.
The committee also noted the importance of ensuring that small businesses, emerging exporters and local manufacturers are able to participate in the opportunities created through these agreements. Economic cooperation must contribute not only to increased trade volumes but also to broader economic inclusion and development.
South Africa’s future economic prosperity will increasingly depend on the country’s ability to strengthen trade relations across the continent, unlock new markets for the South African goods and services, and position itself as a competitive destination for investment, manufacturing and innovation.
The committee remains committed to supporting initiatives that promote economic growth, create employment opportunities, strengthen regional integration and improve the lives of all South Africans. The committee looks forward to receiving future progress reports on the implementation and outcomes of these agreements.
It will continue to exercise rigorous oversight to ensure that these agreements deliver measurable economic benefits, stimulate trade and investment, support job creation and contribute to sustainable economic growth. These agreements must not remain merely well-intentioned commitments on paper, but must translate into tangible outcomes that positively impact the lives of South Africans.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE, MS SONJA BOSHOFF.
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