He says the first Russia-Africa Summit, held last week, concluded with an announcement that urged all participants to increase cooperation in security, science, environmental protection, trade, and economic matters. The declaration highlights that participants should “make efforts to substantially expand the trade between the Russian Federation and the African States and diversify it, including by increasing the share of agricultural products in import and export operations.

Sihlobo says this declaration is important as Russia is an important player in global agricultural markets, ranked as the 13th largest importer, valued at US$28.8 billion annually, on average, over the past five years. Countries that have benefited from Russia’s agricultural import needs are among others Belarus, China, Germany, and Brazil, but African countries are down on the list of key agricultural exporters to Russia. He adds Russia has a trade surplus with the African continent and last year Russia had an agricultural trade surplus of US$2.8 billion with Africa, according to data from Trade Map.

Wheat has been the dominant product in Russia’s agricultural exports to Africa and accounted for an average of 79% of all exports over the past five years. The picture in South Africa is, however, different with the country enjoying an agricultural trade surplus with Russia. The products that South Africa exports to Russia include citrus, apples, pears, wine, grapes, apricots, cherries, peaches, and fruit juices.

He says the announcement of increased agricultural trade by the Russia-Africa Summit is positive for South Africa’s agricultural sector. The growth that South Africa envisages in this particular sector will be export-led, therefore, any talks that encourage trade should be viewed positively. In 2018, South Africa’s agricultural sector exported nearly half of its production in value terms, which means the sector is export-orientated. The current engagements with Russia should seek to improve South Africa’s position by promoting more exports in that market, adds Sihlobo.

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Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz.

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