As South Africa prepares for the upcoming BRICS Business Council meetings in Russia, all eyes are on its agricultural exports drive, a theme that promises to gain momentum at the political leaders’ BRICS Summit in Kazan later this month.
The Agricultural Business Chamber of SA (Agbiz) yesterday indicated that the core message for the nation will revolve around the urgent need to lower tariffs among BRICS members while addressing non-tariff barriers and phytosanitary issues.
Wandile Sihlobo, chief economist at Agbiz, emphasised that South Africa has significant interests across the BRICS grouping, particularly in key markets such as China, India, and Saudi Arabia—countries that are substantial importers of agricultural products.
“The products these countries import from the world market align closely with what South Africa exports, which positions us favourably to enhance our trade relations,” Sihlobo stated.
The challenges faced in these critical markets are formidable, particularly with high import tariffs and various phytosanitary barriers.
As a response, Agbiz asserted that the Department of Trade, Industry and Competition (the dtic) must prioritise agricultural issues in its discussions with foreign governments.
“The aim should be to advocate for reduced import tariffs while collaborating with the Department of Agriculture to navigate phytosanitary challenges for a range of products,” the organisation said.
South Africa’s export strategy encompasses a diverse range of commodities, including multiple fruits, wines, red meat, wool, abalone, grains, and oilseeds. Notably, fruits and wine represent areas with significant growth potential, particularly on underutilised land—over two million hectares of which remain unallocated in South Africa.
Sihlobo highlighted the importance of leveraging this land for agricultural expansion, which could foster job creation and bolster the long-term growth of farming businesses.
Thabile Nkunjana, a senior economist at the National Agricultural Marketing Council (Namc), reinforced that South Africa’s participation in the BRICS+ sixteenth summit should be primarily driven by the objective of expanding markets for its agricultural exports.
This comes on the heels of successful trade agreements signed during the 2023 conference, notably concerning beef exports to China.
The recent inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) as new BRICS members significantly broadens the horizon for South Africa's agricultural product exports.
Nkunjana noted the increasing significance of Middle Eastern markets for South Africa's agricultural exports, pointing out that its animal products have already established a presence in nations like Saudi Arabia and the UAE.
“We must extend this trend to other agricultural offerings, particularly given the burgeoning middle-class populations in India and China, which are vital markets we cannot afford to neglect,” he said.
The Namc also stressed that cultivating closer relationships with BRICS+ members is paramount for South Africa.
Nkunjana said such clarity will not only foster confidence among BRICS+ members but also reaffirm South Africa's commitment to the collective goals of the alliance.
“It is crucial that the country remains transparent regarding its policies while promoting the trade of its agricultural products, particularly in light of rising de-globalisation sentiments,” Nkunjana said.
BUSINESS REPORT