South Africa’s fiscus raked in R105bn in import tax from Chinese products in 2024/25 — more than the next seven countries combined — underlying the extent of trade between the two countries, which is growing as cars from the world’s largest economy flood the local market.
The latest tax statistics by the South African Revenue Service show that China accounted for 30.9% of total import tax, more than Germany, the US, India, Thailand, Japan, Italy and the UK combined.
“Notably, vehicles, aircraft and vessels accounted for the most significant portion of customs duties at 25.6%, down from 26.1% in the prior year. Imports from the world zones of Asia and Europe accounted [for] 82.8% of the combined total import tax contribution.
“Per country, China and Germany — respectively contributing 30.9% and 7.4% of total import tax — remained the principal suppliers of taxable goods to South Africa.”
While South Africa’s fiscus is benefiting handsomely from Chinese imports into the country, it is also coming at a great cost, with Pretoria running a significant trade deficit with Beijing, its Brics ally.
Trade gap data from the Industrial Development Corporation (IDC) shows South Africa exported merchandise to the value of R164bn to China between January and September, which was overwhelmed by R304bn in imports — a R136.6bn deficit.
The numbers show a deepening of long-term dependence and erosion of manufacturing jobs and bargaining power within Brics unless policy shifts to capture more value from exports.
The state-owned IDC said exports to China accounted for 3.3% of South Africa’s GDP in 2024, supporting 330,000 jobs.
The trade deficit between South Africa and its Brics partners has grown by $9.6bn, research conducted by top academic Bhaso Ndzendze, a professor of politics and international relations at the University of Johannesburg, shows.
The deficit has widened continuously, growing from $3.6bn in 2010 when South Africa joined the bloc to $13.2bn in 2024.
Read: SA’s trade deficit with Brics partners widens
On the other hand, South Africa enjoys a narrowing deficit with the EU and a surplus with the US.
The study by Ndzendze calls for a Brics treaty to be established to eliminate tariff and non-tariff barriers.
Ndzendze’s research, published in the Asian Review of Political Economy, a research journal that publishes research in the fields of political economy, finance, trade and investment, found Brics-bound exports from South Africa have grown by an average of 11.49% a year since joining in 2010.
However, the report noted that Brics countries are not importing South Africa’s manufactured goods at a significant rate since joining.
According to a fact sheet on the benefits of South Africa’s participation in Brics, published by the department of trade & industry, the country has reaped great benefits from the bloc.
The fact sheet shows bilateral trade has grown, particularly with China and India, with commodity exports and manufactured goods imports featuring strongly.
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