In a week that South Africa surpassed Spain to become the world’s largest citrus exporter by volume, an expert has raised doubts about the rest of Africa becoming a growth destination for the country’s agricultural exports.
Wandile Sihlobo, presidential envoy on agriculture and land, said while up to 40% of South Africa’s agricultural exports go to countries on the continent, 90% of these products end up in the southern Africa region.
“True, 40% of our farm exports go to African continent, but 90c in every dollar is from southern Africa; nothing from West Africa and (North Africa) regions. The folks are using non-tariff barriers to keep SA exports out.”
Speaking during a discussion on trade and tariffs at the Nampo agricultural exhibition, Sihlobo said even Southern African countries were prone to blocking some of South Africa’s agricultural exports on flimsy grounds
“Sometimes out neighbours block our vegetables, and we still fund them through Sacu (the Southern African Customs Union).”
Organised by Grain South Africa, Nampo is the largest agricultural exhibition in the southern hemisphere and brings together 750 exhibitors who showcase a variety of products from hi-tech farming equipment to other agriculture related products.
It attracts up to 80 000 people in the week it is held in the Free State town of Bothaville.
Sihlobo said instead of looking at Africa, the country should rather unlock new markets in Asia and the Middle East.
“I think we can retain what we have in Europe, Africa and other areas; but Asia and the Middle East…that’s going to remain the regions that still need more food. Qatar spends $20-billion importing food. What sort of relationship should we be having with that region and how is it sustained?” he asked.
Ovizikhungo Sicwetsha, head of transactional banking for business and commercial banking at Nedbank, was, however, adamant that Africa could not be discounted as a growth market for South African exports.
“Around 30% of what SA produces goes into Africa. By 2050 Africa will have the highest number of people. We have to think about that as the agricultural sector in South Africa, and about taking this continent a little bit more seriously.”
Sicwetsha said the liberation day tariffs imposed by the Trump administration on countries around the world, which have impacted South African exports and its economy negatively, had created uncertainty, leaving businesses, banks and their customers in limbo.
“You are not sure what’s going to happen tomorrow, what tariff is going come and what you do with it. The wait and inertia, wondering what’s coming next, are not helping anyone. When tariffs started becoming an issue, banks scrambled around what to do. In South Africa we were worried about our farmers and agricultural exporters. It eats into your margins as a farmer, impacts your profitability and that impacts us as a bank.”
Donald MacKay, director at XA Global Trade Advisors, said while Trump’s tariffs had wreaked havoc, they had also helped countries and businesses diversify from the US. “One of side effects was liberation from US as a market for the rest of the world. The US is an incredibly unreliable partner. We are seeing companies saying, ‘how do I reduce that exposure to the US?’
“You can find another market, but it won’t be one market. If the US accounted for 80% of your exports, that has to be replaced by five other countries, and that increases costs. Countries are going to become more insular,” MacKay said.
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- In a week that South Africa surpassed Spain to become the world’s largest citrus exporter by volume, an expert has raised doubts about the rest of Africa becoming a growth destination for the country’s agricultural exports.
- Wandile Sihlobo, presidential envoy on agriculture and land, said while up to 40% of South Africa’s agricultural exports go to countries on the continent, 90% of these products end up in the southern Africa region.
- “True, 40% of our farm exports go to African continent, but 90c in every dollar is from southern Africa; nothing from West Africa and (North Africa) regions.
- The folks are using non-tariff barriers to keep SA exports out.” Speaking during a discussion on trade and tariffs at the Nampo agricultural exhibition, Sihlobo said even Southern African countries were prone to blocking some of South Africa’s agricultural exports on flimsy grounds “Sometimes out neighbours block our vegetables, and we still fund them through Sacu (the Southern African Customs Union).” Organised by Grain South Africa, Nampo is the largest agricultural exhibition in the southern hemisphere and brings together 750 exhibitors who showcase a variety of products from hi-tech farming equipment to other agriculture related products.
- It attracts up to 80 000 people in the week it is held in the Free State town of Bothaville.
