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SOUTH AFRICA’S NEXT CHAPTER: OPEN MARKETS, AGOA AND BUILDING A RESILIENT ECONOMY…

  • Feb 5
  • 3 min read

South Africa risks falling behind its BRICS partners unless it moves faster and smarter to open new markets. While China, India and Brazil have pushed hard with bilateral deals, state-backed projects and regional outreach, our country too often waits for perfect consensus or lengthy processes. That caution protects against mistakes, but in a world of fast-moving trade shifts and political realignments it also costs jobs, investment and bargaining power. The recent one-year extension of AGOA should be a wake-up call, not a comfort blanket.


AGOA’s short extension exposes two ugly truths. First, preferential access to the US market can disappear quickly when geopolitics or domestic politics change. Second, our agricultural exporters and processors have become partly reliant on preferences instead of on competitiveness. That uncertainty makes long-term planning nearly impossible for growers, cold-chain investors and packers who must decide now whether to expand orchards, build processing plants or buy machinery.


The immediate effect of the AGOA extension is breathing space, not a guarantee. For exporters of fruit, nuts, wine and processed foods it means a narrow runway to diversify markets, add real value and harden logistics. It is also a test of South Africa’s trade diplomacy. Will we use this year to clinch deeper access to regions that matter—Europe, Middle East, China and Africa under AfCFTA—or will we wait to see what Washington decides next?


There are practical steps that make market-opening faster and cheaper. First, streamline trade facilitation: faster phytosanitary checks, reduced port and customs bottlenecks, and full digitisation of export paperwork. Second, back SMEs and emerging farmers with export finance and risk insurance so they can compete abroad. Third, invest in agro-processing and cold chains to sell products with higher margins that are less dependent on tariff preferences.


Beyond immediate trade fixes, South Africa must upgrade its soft power and trade intelligence. Market opening today is about relationships and data as much as tariffs. Trade missions should be preceded by granular market research—consumer preferences, regulatory hurdles and competitor analysis—and accompanied by business-to-business matchmaking, not just political fanfare. Provincial governments and ports should be incentivised to run export incubators that link local producers to international buyers, providing mentorship, certification support and consolidated logistics that reduce per-unit costs for smallholders.


Finance and risk management are critical levers. Public development finance institutions must scale targeted instruments—export credit, currency hedging and guarantees—so that smaller agribusinesses can bid for foreign contracts without risking ruin. Private banks and insurers should be encouraged through co-guarantees to underwrite longer-term investments in cold storage and processing plants. Industry associations should pool resources for marketing campaigns, certification drives and shared infrastructure that individual firms cannot afford alone.


The AfCFTA is an untapped advantage and must become central to our strategy. Building scale through regional value chains can shield exporters from abrupt preference changes while creating jobs in manufacturing, logistics and food processing. South African producers should see the continent as a first port of call for growth—link farms to regional processors and retailers to build resilience and demand.


Finally, accountability and measurable targets will turn rhetoric into results. Set clear KPIs: number of new market entries per year, reduction in average export clearance time, percentage growth in processed-agricultural exports, and a timetable for AGOA contingency plans. Publish quarterly progress and celebrate wins to sustain momentum. If South Africa accelerates market opening with discipline, partnership and creative finance, the AGOA extension will be remembered not as a narrow reprieve but as the deadline that launched a decade of trade-led renewal.

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