As South Africa’s agricultural sector navigates geopolitics and looks beyond the United States for new trade opportunities, Asia is increasingly emerging as a reliable market amid the uncertainty.
According to Agbiz senior economist Wandile Sihlobo, as of last week, some South African agricultural products will enjoy tariff-free access to the Chinese market under the China–Africa Economic Partnership Agreement (CAEPA).
Sihlobo said the country’s agricultural products have struggled with higher tariffs in China. For example, the wine industry faced duties of 14-20%, the macadamia industry 12%, and several other products faced higher tariffs.
“Therefore, reducing these tariffs will boost the competitiveness of our farm products in the Chinese market and make them more affordable for Chinese consumers.
“China has long been a priority market for deepening access to our agricultural products. Before this news of lowering tariffs, we had a small presence in the Chinese market. For example, in 2023, South Africa accounted for a small share of China’s agricultural imports, at about 0.4% (US$979 million) of US$218 billion,” he said.
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China has become a crucial market for South Africa’s agricultural exports, especially citrus, wine, and meat. It helps diversify trade away from traditional Western partners and supports growth through rising Chinese demand.
Strengthening agricultural trade
Within Brics, political ties ease market access and strengthen cooperation. However, this relationship is shaped by geopolitics, as trade depends on diplomatic agreements and regulatory approvals. Overreliance on China poses risks, including price pressure and policy shifts.
Sihlobo said the agricultural industry is keen to see an increase from this small share. “We have a large volume of products to export, including fruits, wine, grains, and meat products. Chinese consumers will now enjoy these products at slightly lower prices than when they faced higher tariffs.
“China is among the world’s leading agricultural importers, accounting for 9% of global agricultural imports in 2024 (before 2024, China was the leading importer). Widening exports, in general, is key to South Africa’s long-term agricultural growth,” he said.
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