In a bid to bolster its agricultural export footprint, South Africa is eyeing an ambitious expansion into key markets within the Brics+ coalition, as outlined by Wandile Sihlobo, Agbiz chief economist.
Sihlobo emphasises the critical need for the nation to both sustain existing markets and tap into new territories amidst a global landscape marked by geopolitical fragility.
He says, “South Africa must walk a careful path so its foreign policy approach does not result in a negative approach to trade or growing protectionism by traditional trading partners.”
This, he highlights, is pivotal for the sustainable growth of South Africa’s agricultural sector and the consequential creation of job opportunities.
Strategic targets and collaborative endeavours
Sihlobo’s analysis underscores the necessity for the country to tread cautiously in its foreign policy approach, ensuring it doesn’t inadvertently provoke trade protectionism among its established trade partners. Preserving these relationships is deemed pivotal for the sustainable growth of South Africa’s agricultural sector and the consequential creation of job opportunities.
The targeted Brics+ countries for market penetration include economic powerhouses such as China, India, and Saudi Arabia, alongside strategic markets like South Korea, Japan, Vietnam, Taiwan, Mexico, the Philippines, and Bangladesh.
Both governmental bodies and private sector entities align on the aspiration for export expansion. According to Sihlobo, “The department of trade, industry and competition and the department of agriculture, land reform and rural development should lead the way for export expansion in these agricultural strategic markets.”
The recent 15th Brics conference on agriculture highlighted the imperative to not only deepen trade ties within the Brics+ coalition but also maintain connections beyond this grouping. The focus here is on lowering import tariffs and addressing sanitary and phytosanitary barriers to facilitate smoother intra-group trade.
Imperatives for SA’s export growth and market evolution
Highlighting the magnitude of agricultural imports within the Brics coalition, Sihlobo’s data from Trade Map reveals that in 2022, the collective agricultural imports of Brics nations from the global market amounted to approximately US$320 billion. He says, “The value will be much larger now that we are in a Brics+ environment.”
The core agricultural products imported by the original Brics members encompass soybeans, palm oil, beef, maize, berries, wheat, cotton, poultry, pork, apricots, peaches, sorghum, rice, and sugar. While some Brics nations produce these commodities at scale, imports are often sourced from non-group suppliers due to prevailing tariffs and SPS barriers.
Sihlobo stresses the paramount importance of maintaining and expanding market access for South African agriculture. He emphasises the need for a nuanced understanding of these imperatives within the political leadership framework of the country’s foreign policy.
As South Africa navigates its agricultural export strategy, the delicate balance between sustaining existing trade relationships and venturing into new, lucrative markets within the Brics+ bloc remains pivotal for the nation’s agricultural growth and economic resilience.
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