AFRICAN CONTINENTAL FREE TRADE AREA THROUGH THE NEW ECONOMIC GEOGRAPHY A case study of Richards Bay, South Africa

Abstract

In a world economic scenario strongly affected by COVID19 , the African Continent certainly deserves special attention due to its complexity and its many possible courses of economic development. One of the paths that is emerging is The African Continental Free Trade Area (AfCFTA), an opportunity to increase integration, making the area more competitive in the global context.

The importance of the AfCFTA for the global economy is underlined by the fact that it would create the free trade area with the largest number of countries involved, with more than 1.3 billion people affected and a total GDP estimated at over 3.4 trillion US dollars.

The present dissertation aims to interpret such a complex phenomenon using the Core-Periphery model. This paradigm was still considered reliable for interpreting the directions of the possible future in the developing countries by Paul Krugman's "The New Economic Geography, Now Middle Aged” in 2010.

In conclusion the case study of Richards Bay, South Africa, is presented as a possible core in the emerging Core-Periphery dynamic. In detail, the Richards Bay Industrial Development Zone (RBIDZ), a state-owned industrial development company, has the responsibility of encouraging international export competitiveness. With the aim of clustering small manufacturing enterprises around the City's main industries, RBIDZ offers tax incentives, infrastructure and utilities, simplifying administrative requirements and providing customs support services.