The major development in South Africa’s agriculture recently has been on trade. The China-Africa Framework Agreement on Economic Partnership for Shared Prosperity (CAEPA) came into effect on May 1.
China established the CAEPA as a framework to “promote the common development of China and Africa”, according to the ministry of finance of the People’s Republic of China. This will be achieved through boosting trade and investment.
The CAEPA opened a two-year window for zero tariffs on agricultural products from South African suppliers to China, with quotas on some, mainly grains. For the majority of the agricultural products that South Africa typically exports to the world market and seeks to advance, such as various fruit, nuts, raisins, wine and meats, the Chinese market is now available tariff-free for the next two years.
This is before the advancement of the present trade arrangement, subject to meeting the prescribed rules of origin, including product-specific requirements and submitting a valid certificate of origin for customs clearance in China.
This is a positive development for the South African agricultural sector as it helps efforts to diversify exports. The South African agricultural sector is export-orientated and deepening access to tariff-free rates in markets such as China also supports agriculture’s long-term growth agenda, which hinges not only on expanding domestic production but also on broadening exports.
China is the second-largest agricultural importer in the world after the US, with average annual imports of $206bn over the past five years (2021-05). China’s leading agricultural suppliers over this period include the US, Australia, Vietnam, Thailand, Indonesia, New Zealand, Argentina, Chile, Russia and Canada.
The South African agricultural sector is export-orientated and deepening access to tariff-free rates in markets such as China also supports agriculture’s long-term growth agenda, which hinges not only on expanding domestic production but also on broadening exports.
The top imported products include soya beans, beef, berries, peaches and plums, vegetable oils, milk, poultry, pork, mutton, wool, wine and spirits. South Africa produces some of these products in surplus and exports them to a range of countries.
Because of its global significance the Chinese market has long been on the radar of South African agricultural exporters. However, the competitiveness of South African products has been hampered by tariffs. For example, South African wine producers faced tariffs of 14%-20% when exporting to China and macadamia nuts faced tariffs of around 12%. Most of the South African agricultural competitors listed above in the Chinese market accessed it at zero tariffs as some have trade agreements with China.
South Africa accounted for a mere 0.4% share of China’s agricultural imports, averaging about $206bn over the past five years. With CAEPA coming into effect, South African exporters will now be on an equal footing with the exporters listed above. The main determinant of success will now mainly be product quality and cultivating relationships with businesses or importers in China.
This market opening builds on South Africa’s successful agricultural export journey, with exports in 2025 reaching a record $15.1bn, up 10% from 2024. These exports were diverse across Africa, Europe the UK, the US, Middle East and Asia.
Importantly, in the present environment of heightened geoeconomic tensions, South Africa’s export-orientated agricultural sector must maintain its existing export markets and expand into new ones such as China through CAEPA.
The South African departments of trade, industry & competition, international relations & co-operation and agriculture should lead the way in expanding exports to markets and exploring new ones.
South Africa should expand market access to Brics countries, including India, Saudi Arabia and Egypt. Moreover, as the export promotion continues the focus for both policymakers and agribusinesses and organised agriculture should be on improving logistical efficiency.
This entails investments in port and rail infrastructure, as well as improving roads in farming towns.
• Sihlobo is presidential envoy on agriculture and land, chief economist at the Agricultural Business Chamber of South Africa and a senior fellow in Stellenbosch University’s department of agricultural economics.
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