South Africa must focus on strengthening and revitalising relations with its trade partners beyond Europe, according to Wandile Sihlobo, chief economist for the Agricultural Business Chamber (Agbiz).“For South Africa’s long-term agriculture growth strategy, export markets are a fundamental part of its success. Agribusiness and farmers should now, more than before, put more emphasis on this matter in their various engagements with government and international stakeholders,” he said.This comes as US President Donald Trump has followed through with election promises to impose tariffs on imports from Canada, Mexico and China, resulting in increased trade friction around the world.“In the coming years, as trade friction persists globally, we suspect that there will likely be a change in various regions’ trade approaches, with some preferring more protectionism for their markets in general,” said Sihlobo. The EU is one such region. Farmers from France and other major EU countries have already called for restrictions on imports of agricultural products. Sihlobo said this was likely to intensify, and in some instances, could take the form of non-tariff barriers.“If trade fragmentation and economic nationalism intensify, South Africa’s agriculture and other exporting industries will be at risk,” he said.South Africa’s agri growth has consistently been on the back of increased exports for decades.According to Agbiz, roughly half of the produce in value terms goes to the export markets. In 2024, these exports are expected to exceed the $14 billion mark for the first time. Higher commodity prices and strong fruit exports have been drivers of South Africa’s trade.Figures from Trade Map show that agricultural exports reached a record $13.2 billion in 2023. While the final figures for 2024 are not yet available, the cumulative export value for the first three quarters of 2024 is up 4% from the same period in 2023. Logistics efficiency remains a concern for the agri sector if they want to remain competitive internationally. Speaking at the annual Mining Indaba, Transnet Port Terminals general manager: commercial and planning, Michelle Van Buren-Schele, said a corner had been turned and progress was being made in terms of policy shifts and addressing some of the major operational challenges faced at the ports.According to Sihlobo, ongoing engagement between business and government is critical. “For each export-oriented industry, there should be regular engagement between local business representatives, organised businesses and the government to hone our export strategies. In these times, South Africa must maintain a posture as an open global actor that seeks to build relations across the globe on a pragmatic basis.”LV
