The expanded BRICS offers more export opportunities for SA agriculture

• 20 January 2025
• 0 Comments
• Agbiz
• Temba Msiza

It's good to see the BRICS grouping expanding – with Nigeria and Indonesia having recently joined the group. Nigeria has, amongst other things, highlighted that they want to prioritize trade and investment, energy security, infrastructure, and technology. The " trade " aspect aligns perfectly with South African agriculture's focus within the BRICS.

We focus on the need to deepen agricultural trade for specific reasons. First, South African agricultural exports to BRICS remain relatively low. And yes, BRICS is not a trade bloc, but if trade could be deepened, South Africa's agriculture stands to benefit.

The member countries' high import tariffs and some non-tariff barriers (phytosanitary barriers) distort trade, which is understandable as we are not a trade bloc.

However, the grouping is expanding, which presents opportunities for South Africa's agriculture, especially as new members want to deepen trade.

But as the grouping matures and expands, it is opportune that, amongst many things, we form an agricultural trade agreement or move with speed in supporting intra-agricultural BRICS trade by lowering import tariffs and addressing the phytosanitary barriers that we face in this group. This was South Africa's central agricultural message during the Summit in Russia in 2024 and Johannesburg in 2023. Brazil is also one of the countries that shares South Africa's enthusiasm for trade (and now Nigeria). I hope they continue to push this message this year and that they will have our support.

Importantly, South Africa should not get too excited and forget that the EU, Africa, the broader Asia and Middle East and the Americas remain valuable trading partners for our agricultural sector.

Our focus on BRICS agricultural trade possibilities is not to replace them but to diversify the export markets. Other strategic export markets for South Africa's agricultural sector include South Korea, Japan, Vietnam, Taiwan, Mexico, the Philippines, and Bangladesh. We must also pursue these markets and expand South Africa's agricultural export markets.

Wandile Sihlobo, email: wandile@agbiz.co.za

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