South Africa’s trade policy is underpinned by an export-led growth strategy aimed at deepening and expanding its export markets. He says these efforts can be seen through South Africa’s participation in trade negotiations which seek to increase market access with traditional trading partners such as the European Union (EU) and penetrate new markets in Africa through the African Continental Free Trade Agreement (ACFTA).  More recently, Asia and the Far East (particularly India and China) have become a key growth frontier that presents South Africa with new opportunities to expand its exports. Overall, Asia has accounted for a quarter of South Africa’s agricultural exports, with indications that South Africa can potentially increase its market presence substantially in the future. In Asia and the Far East, India and China are especially interesting because they account for 36% of the world’s population, whose economic sizes are US$3.2 trillion and US$15.5 trillion respectively.

Sihlobo adds that South Africa’s agriculture exports reached a record of US$10.6 billion last year which was underpinned by increased exports of oranges, grapes, wine, maize, apples, wool, lemons, mandarins, and pears, amongst other products. Agricultural exports can, however, decline somewhat because of the lower harvest of some key agricultural products, most notably maize and citrus products, on the back of drier weather conditions. It is estimated that South Africa’s 2019/20 maize exports could fall by almost half from the previous season to 1.1 million tonnes. At the same time, data from the Citrus Growers Association points to a potential 6% year-on-year decline in South Africa’s citrus exports to 127.8 million cartons.

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

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