By Michelle van der Spuy
South Africa must always focus on resolving diplomatic issues with its neighbours in the Southern African region to promote stability and enable these countries to buy grapevines from their neighbours.
Wandile Sihlobo, chief economist at Agbiz, says South Africa “can’t afford sin” with its neighbours. Last year, South Africa exported approximately $13.7 billion (around R245 billion) in agricultural products, with 44% destined for African countries. About $0.90 of every $1 that South Africa earned from its agricultural exports to Africa can be attributed to sales in the Southern African region.
He says that there has been friction between South Africa and some countries in the region in recent years. Examples include the recent ban on the export of certain vegetables to Botswana, which was announced in December and revoked in April, and Namibia, where this ban remains in effect.
Tanzania announced a ban on the import of agricultural products, specifically table grapes and apples, from South Africa on 24 April but revoked it two days later. The quick revocation resulted from diplomatic consultations between Ronald Lamola, South Africa’s Minister of International Relations and Cooperation, and officials from Tanzania. Both countries agreed that discussions are the best solution for any trade issues.
Neighbouring countries must target the right products
Sihlobo says the need to boost local production is a common factor in the countries’ decision to impose an import ban. Another issue is the sometimes incorrect reasoning that they will gain slow access to the South African market through trade restrictions.
Incorrect statements about the South African agricultural market are made regularly. South Africa’s agricultural market is relatively open, and all these countries are part of the Southern African Development Community’s free trade area.
“They probably don’t get quick access to this market because, as in the case of Tanzania’s bananas, there hasn’t been a formal request for market access yet or because some of their products would not be as competitive in the South African market.”
Although South Africa is a net exporter of agricultural products, it also imported products worth $7.6 billion (approximately R140.9 billion) last year. This figure represents an 8% increase compared to the previous year, driven by higher imports of wheat, palm oil, rice, chicken meat, and whisky.
According to Sihlobo, it makes sense that neighbouring countries seek greater access to the South African market. He advises these countries to carefully examine South Africa’s import list and focus on targeting those specific value chains.
Promote local production this way instead
Regarding promoting local production, South Africa has much to offer its neighbours regarding essential technology and knowledge.
“Various South African agricultural enterprises and commodity associations, such as the Southern African Citrus Growers Association, have expanded their operations and membership to the Southern African region to encourage production.
“The goal should be to enhance the region’s combined agricultural output, strengthen various value chains, and boost exports globally and within the region.”
However, the above requires stability and cooperation, not only in the private sector but also in official policies. Trade friction should be minimised, and according to Sihlobo, only trade restrictions that prevent the spread of animal diseases, such as foot-and-mouth disease, should be allowed.
“While South Africa will likely maintain the largest share of the pie initially, several strong value chains are also present in other countries, such as livestock in Namibia and Botswana. Tea, coffee, and grains could serve as a starting point for Tanzania.”
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