Analysis of Critical Variables for Angola's Inclusive Integration into the SADC Free Trade Area (Empirical Evidence from 2022–2024)

Abstract

Regional economic integration has established itself as an essential strategy for both developed and developing countries, aiming to expand markets, boost trade exchanges, attract investments, and promote sustainable economic growth. In Africa, the Free Trade Area of the Southern African Development Community (SADC) represents a significant initiative to foster economic cooperation and reduce customs barriers, thereby creating a more competitive regional economic space. In this context, Angola, as a member state, faces opportunities to integrate into the zone and strengthen its role in regional trade. This study aims to analyze the critical variables for Angola's inclusive integration into the SADC Free Trade Area, based on empirical evidence from 2022 to 2024. To achieve this objective, the research adopted a descriptive, analytical, and comparative methodology, supported by bibliographic and documentary techniques. The results show that although the Free Trade Area offers significant commercial advantages, Angola still lacks the structural and institutional conditions for full and beneficial adherence to the Area. This is due to several obstacles such as timid and unstable economic growth, low economic competitiveness, an unfavorable business environment, high inflation, heavy reliance on the extractive sector, an economy sustained by the informal sector (about 65%), high benchmark interest rates, continued depreciation of the Kwanza, lack of integration between the three sectors of the economic circuit, corruption, and inadequate economic policies.