Few things are as important in South Africa’s agriculture as working to expand export markets. We have a sector that has more than doubled since 1994. In addition to improving farm productivity, export growth is one of the key growth catalysts in South Africa’s agriculture.
South Africa is the world’s 32nd largest agricultural exporter and the only African country within the world’s top 40 largest agricultural exporters in value terms. This was made possible by a range of trading agreements the South African government secured over the past decades, the most important being with the African continent, Europe, the Americas, and some Asian countries. The agricultural subsectors that have benefited the most from the rise in exports are horticulture (and wine) and grains.
Many of these markets were opened when the world was focused on “globalization” in the early 2000s. The conversation has now changed, and “fragmentation” is the day’s topic. We see this through frequent non-tariff trade barriers in places such as the EU in the case of citrus and even occasional trade friction in Southern Africa. Botswana and Namibia have often banned imports of vegetables from South Africa. However, the region is correcting these policy mistakes, and Botswana is gradually lifting the bans.
However, the central focus of South Africa is not only on maintaining the existing markets but also on the one promising area we must explore, which is the BRICS.
Indeed, many people are correct in asking me: What is the benefit of the BRICS for agriculture?
The agricultural benefits of the BRICS countries to South Africa remain minimal. The member countries’ high import tariffs and some non-tariff barriers (phytosanitary barriers) distort trade, which is understandable as we are not a trade bloc.
But the grouping is now expanding. Indonesia has formally joined the BRICS. The expansion of this group presents opportunities for South Africa’s agriculture. Indeed, the agricultural benefit of BRICS countries remains minimal.
But as the grouping matures and expands, it is opportune that, amongst many things, we form an agricultural trade agreement or move with speed in supporting intra-agricultural BRICS trade by lowering import tariffs and addressing the phytosanitary barriers that we face in this group. This was South Africa’s central agricultural message during the Summit in Russia 2024 and Johannesburg in 2023. Brazil is also one of the countries that shares South Africa’s enthusiasm for trade. I hope they continue to push this message this year and that they will have our support.
Importantly, we should not get too excited and forget that the EU, Africa, the broader Asia and Middle-East and the Americas remain valuable trading partners for our agricultural sector.
Our focus on BRICS agricultural trade possibilities is not to replace them but to diversify the export markets. Other strategic export markets for South Africa’s agricultural sector include South Korea, Japan, Vietnam, Taiwan, Mexico, the Philippines, and Bangladesh. We must also pursue these markets and expand South Africa’s agricultural export markets.
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