Tariffs Eliminated on IT Goods in African Trade Zone

By Michael Malakata
Mon, August 25, 2008

IDG News Service —

The Southern Africa Development Community (SADC) has launched a Free Trade Area, which will see the abolition of customs duty on 85 percent of ICT and other products produced in the region.

The remaining 15 percent duty will be liberalized by 2012 so that the region can effectively participate in the changing global economy, where competition continues to intensify, said SADC Chairman and South African President Thabo Mbeki at a summit of the SADC's heads of state last week.

The removal of tax is aimed at allowing a free flow of products in the SADC region in order to promote regional integration. The Free Trade Area will also attract investment in ICT equipment manufacturing by companies currently exporting their products to the Southern African market.

A South African computer manufacturing company, Sahara Computers, and the Mozambican government have already signed an agreement to begin manufacturing computers in Mozambique.

SADC is a regional economic bloc based in Botswana, chartered to accelerate the region's economic development through increased trade.

"The launching of the Free Trade Area is a resuscitation of the shared vision and commitment as the regional body considers the next steps required to further advance regional integration," Mbeki said.

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