This policy insight reviews the state of South Africa’s service sector, casting light on the associated challenges and opportunities at national and regional level. It concludes that, in the short term, corporates cannot look to the African Continental Free Trade Area as a catalyst to boost services trade but must take advantage of changing markets post COVID-19. Steps towards this would include targeting new services niches based on information and communications technologies and supporting broad-based measures to grow the economy and merchandise exports that have strong links to services trade. It recommends the establishment of a coalition of service providers within South Africa, that information and communication infrastructure be updated as a matter of urgency and the obstacles limiting South Africa as a regional gateway be addressed. Over the medium term, true progress in building a continental services market will come only if and after significant cross-border relationships apply pressure to the negotiators representing many African countries.
