The government’s new concession allowing exporters to be exempt from certain provisions of competition legislation could help export industries regain competitiveness following last year’s sweeping changes in the international market.

By Carien Kruger, senior journalist at African Farming and Landbouweekblad

Theo Boshoff and Wolfe Braude, respectively CEO and manager of the fruit division at the agricultural business chamber Agbiz, say the new block exemption is very welcome, particularly given the logistical challenges and costs faced by South African exporters. A significant proportion of South Africa’s agricultural products are exported.

Parks Tau, Minister of Trade, Industry and Competition, announced the exemption in terms of the Competition Act (Act 89 of 1998) through a notice published in the Government Gazette on 12 December 2025. Specific practices are exempted “to reduce the economic impact of international tariff changes and contribute to the resilience and growth of South African exports,” according to Tau’s announcement. The regulations came into effect on the date of publication.

When asked, Boshoff and Braude said that without this exemption, South Africa is often placed at a disadvantage compared with other exporting countries that enjoy greater regulatory concessions. Furthermore, South Africa’s logistics network – particularly ports – as well as the energy and water networks, are under significant pressure due to years of inadequate investment.

“This creates a risk for South African exporters that they may be downgraded by buyers in terms of reliability, efficiency and even cost. Exporters’ costs of navigating poor infrastructure are a reality,” they say.

For example, the citrus industry estimates that inefficient logistics systems cost it approximately R5.27 billion during the 2024 season. This includes direct and indirect costs related to slow handling of export products at ports, poor road and rail infrastructure, delays and reduced export revenues.

“Missing buyers’ contracted deadlines places the entire value chain under pressure and can lead to reputational damage.”

Also read: NAMC CEO celebrates 10% agricultural export growth amid global trade challenges

Benefits of Collaboration

Agbiz says that, as a member of Business Unity South Africa (Busa)’s team at Nedlac – the National Economic Development and Labour Council – it has for several years been advocating for conditions under which exporters can collaborate to promote and expand South African exports, to the benefit of the entire country.

“When exporters or industry representatives attend international trade fairs, importers from other countries often require volumes or capabilities that can only be met if several companies work together.

“When industry representatives accompany government officials on trade missions, their counterparts from other countries often also require information on how South Africa as a whole can meet their demand for certain products.”

Boshoff and Braude say a step such as the announced block exemption has long been needed to help unlock new market opportunities and sustain the export-led growth that many agricultural commodities are experiencing as a result of increased plantings and volumes.

Also read: WATCH | Good news on South Africa’s Q3 agricultural exports

Certain restrictions remain in place

Restrictions on the extent to which exporters may cooperate still apply.

“Undesirable conduct such as market segmentation or price fixing remains rightly prohibited.

“The exemption allows, among other things, bona fide cooperation in the sharing of certain information, as well as joint marketing and logistics.”

The exemption is set out in broad terms.

“Anyone wishing to rely on it must inform the Competition Commission of their intended activities so that the Commission can confirm whether these fall within the exempted practices.

“This requirement will act as a ‘filter’, but it is an accelerated process – instead of applying for an exemption, a business needs only to obtain confirmation that its activities fall within the scope of the exemption,” says Boshoff and Braude.

* The regulations appear on page 354 of the relevant Government Gazette.