South African exporters have been reminded once again of the dangers of relying too heavily on major global markets. The US has now enforced steep tariffs on South African exports, bringing months of warnings to reality. This is more than a diplomatic setback — it's a wake-up call.
So where do we go from here?
The answer lies in diversification. For too long, South Africa has focused its export strategy on developed markets like the US, Europe and Asia. These markets are established and wealthy — but they are also becoming more protectionist, unpredictable and saturated. It’s time to pivot. And Africa must be at the centre of that shift.
In 2023 South Africa exported R548bn to the rest of Africa while importing only R167bn — resulting in a trade surplus of R381bn. Africa accounted for 29% of South Africa’s total exports but only 9% of its imports. In contrast, South Africa recorded a trade deficit of more than R350bn with Asia in the same year.
Fast-forward to 2024, and the trend not only continues, it accelerates. South Africa ended the year with a trade surplus of more than R216bn, double that of the previous year. This momentum carried into early 2025, with Q1 agricultural exports hitting $3.36bn (about R60bn), up 10% year-on-year — and 45% of that went to African markets.
These numbers confirm the growth and dominance of intra-African trade, especially for value-added exports like processed foods, consumer products and manufactured goods.
Of the R548bn exported to Africa in 2023, more than 90% went to countries within the Southern African Development Community (Sadc). That leaves large parts of the continent — West, East, Central and North Africa — still largely untapped.
For example, South Africa exported just R27bn to West Africa and only R4bn to North Africa in 2023, despite these regions having significant populations and expanding demand for products that this country already produces competitively.
Africa is not just a neighbour. It’s our biggest unrealised opportunity.
The new US tariffs should not just be seen as a blow, but as a turning point, a shocker and a catalyst for profound growth. They highlight the risks of overreliance on a few traditional markets and underline the need for a more balanced, resilient export strategy.
Africa is not our alternative; Africa is our advantage
Africa presents several compelling advantages, including:
- proximity, which reduces shipping time and cost;
- policy alignment through the African Continental Free Trade Area (AfCFTA);
- fast-growing consumer markets; and
- cultural and regulatory familiarity, particularly in key sectors such as agriculture and construction.
We have the capability and infrastructure to lead African trade — but we must now act with intent.
Four moves to expand trade into Africa
- Target markets with intelligence: exporters need better data and insights to navigate African markets. Every region has distinct rules, logistics and opportunities. Exporters must be equipped with platforms that guide strategic decisions — and tools like Zynched are already doing just that.
- Focus on value-added goods: we must move beyond raw material exports. Africa’s demand is increasingly for processed foods, machinery, industrial goods and services. South Africa can meet this demand with existing capacity.
- Improve infrastructure and access: intra-African trade requires reliable logistics. Investment in regional ports, corridors and harmonised customs processes will help reduce friction and boost trade volumes.
- Strengthen export support: government institutions must enhance trade incentives and guarantees for Africa-focused exporters. This includes credit insurance, market development funding and streamlined regulatory support.
The good news is that we’re not starting from zero. The data from 2024 and early 2025 shows that the pivot towards Africa has begun. It’s no longer a theory — it’s a track we’re already on.
With global trade becoming increasingly turbulent and access to traditional markets growing more uncertain, South Africa must now double down on its regional strengths. African trade must evolve from a “plan B” to the foundation of our long-term strategy.
The future is not across oceans. It’s across our borders.
If we make the right moves, we won’t just recover from the effects of foreign tariffs — we’ll emerge with a stronger, more sovereign trade model. The opportunity is already showing results. Now it’s time to scale.
Africa is not our alternative; Africa is our advantage.
• Bezuidenhout is the founder of financial services provider BeztForex.co.za and the global trade AI platform Zynched.com
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.