South Africa's agricultural exports mostly include a range of meat products, grains, oilseeds, and fruits.
Image: : Simphiwe Mbokazi Independent Newspapers
The Agricultural Business Chamber of South Africa (Agbiz) has urged the nation to diversify its export markets in response to the trade turbulence generated by US President Donald Trump's announcement of potential tariffs that may exceed 10% on South African exports.
Agbiz's chief economist, Wandile Sihlobo, on Monday emphasised the importance of remaining neutral and actively seeking new business opportunities, particularly in the Middle East, which he identified as a market ripe for expansion.
Despite a commendable record in agricultural exports—reaching an impressive $13.7 billion (R286bn) in 2024, up 3% from the previous year—Sihlobo cautioned that South Africa cannot afford to become complacent.
With nearly half of its agricultural exports absorbed by the African continent and substantial markets in the European Union, Middle East, Asia, and the UK, there remains significant potential for trade growth in less-saturated regions, particularly the Middle East.
“While a significant share of South Africa’s agricultural products are already exported to the Middle East, the presence of South African agriculture in this region is arguably still peripheral,” he said.
Sihlobo highlighted that Saudi Arabia, for instance, imports roughly $25bn (R489bn) of agricultural products annually, yet South Africa only accounts for 1% of those imports, positioning it as the 31st largest supplier.
The UAE and Qatar also offer substantial markets where South Africa's share remains minimal—2% in the UAE and 2% in Qatar, ranking 16th and 10th respectively among agricultural importers.
South Africa's agricultural exports mostly include a range of meat products, grains, oilseeds, and fruits. Despite the current limited participation, Sihlobo expressed optimism considering the country’s capabilities to boost agricultural production.
He argued that strategic marketing efforts and government backing were essential to navigate and mitigate existing phytosanitary barriers and tariffs that hinder South African products' access to these lucrative markets.
Sihlobo said that South Africa must work to retain the current access for agricultural products and other products in the US.
“However, a framework for a post-Agoa path must focus on a free trade agreement, and how we manage the higher tariffs imposed by the US government,” he said.
Sihlobo added that the African continent, which remains an anchor of South Africa’s agricultural exports, also requires continuous engagements to strengthen relations.
“This is ideal to avoid the friction we observed with the vegetable export ban in Botswana (now resolved and reopened) and Namibia (restrictions have not been lifted). Overall, South Africa should take a long-term vision and appreciate that industry growth relies on relationships with varied countries.”
Meanwhile, Francois Rossouw, CEO of Southern African Agri Initiative, said that they believe that all export opportunities should be actively explored, especially those that can expand market access and extend product shelf space across more months of the year.
“The Middle East holds significant untapped potential, and diversifying our trade partners is not just a buffer against geopolitical risk, but also a growth strategy,” Rossouw said.
“By continually improving our production standards, compliance, and traceability, we not only maintain existing markets but make it easier to open new ones. Strategic partnerships and government support will be essential to unlocking these opportunities.”
Izaak Breitenbach, CEO of the South African Poultry Association, said that US authorities have yet to communicate the path forward for Agoa.
“We assume that this tariff announcement will be the end of Agoa, which will be bad for the country. The USA had anti-dumping duty-free access for 71 000 tons chicken exports to South Africa, and the poultry industry will ask Department of Trade and Industry and Competition /ITAC to remove this benefit,” Breitenbach said.
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