Boosting South African Agricultural Exports to BRICS+ Nations
Agbiz is optimistic about South African agricultural exports to BRICS+ nations. This grouping offers a significant opportunity for South Africa’s agricultural sector. Agbiz chief economist Wandile Sihlobo says South Africa will prioritize exports to BRICS+ nations. The country will also maintain its key export markets.
Expanding Market Access
Over the past two years, China, Saudi Arabia, and Egypt have widened market access for various South African agricultural products. These countries have opened up their markets to selected fruits, wine, wool, meat, and grains from South Africa. Agbiz aims to broaden market access in BRICS+ for most of South Africa’s agricultural products.
BRICS+ Summit: A Step Towards Deeper Trade
The 2023 BRICS Summit in Johannesburg prioritized trade as a significant point on the agenda for discussion. The political principals broadly agreed that deepening trade was necessary for the BRICS countries. The priority is for each BRICS member to work to reduce import tariffs and address phytosanitary constraints for various products.
New Opportunities with BRICS+ Expansion
The recent expansion of the BRICS+ bloc, effective January 1, 2024, has significantly enhanced agricultural trade prospects. With the inclusion of new members, such as the Kingdom of Saudi Arabia and Egypt, South African agricultural exports have experienced a substantial boost in potential. Particularly, Egypt presents an attractive market, given its massive annual import of approximately $16 billion worth of agricultural products. Consequently, South African grain farmers, traders, and beef producers are well-positioned to capitalize on this lucrative market opportunity. Moreover, the expanded BRICS+ bloc offers additional avenues for South African agricultural products to reach new markets and consumers across the member nations. Additionally, this expansion is expected to facilitate further market diversification and increased exports for South African exporters, ultimately strengthening their position in the global agricultural trade landscape.
Growing Demand for South African Agricultural Products
The original BRICS countries are significant importers of agricultural products, with agricultural imports averaging $255 billion annually between 2019 and 2022. South Africa produces many of the products in abundance and has surplus volumes for exports. With the growing demand for agricultural products in the BRICS+ nations, Agbiz is confident that South African agricultural exports will continue to grow.
By increasing trade with the BRICS+ nations, South Africa can capitalize on the growing demand for its agricultural products and boost its economy. As Agbiz continues to prioritize trade, the future looks promising for South African agricultural exports.