“The current agricultural trade within BRICS remains limited, with imports often sourced from non-member countries due to high tariffs and complex phytosanitary regulations. The inclusion of new BRICS members presents an opportunity to broaden this trade base and unlock significant economic benefits,” said Sihlobo.
“The bloc accounts for only 8% of our agricultural exports. If we are to make real progress, we need to tackle the barriers like high import tariffs and stringent phytosanitary regulations that hinder trade.”
Sihlobo advocated for policy measures that focus on reducing tariffs and non-tariff barriers within BRICS. Establishing a platform for trade negotiations and exploring a comprehensive BRICS agricultural trade agreement could significantly boost trade and support food security across member nations.
“The European Union’s environmental policies, while well-intentioned, have become trade barriers. Our citrus industry has felt the brunt of these restrictions. We should not expect these challenges to ease soon; protectionism appears set to remain a fixture in global trade.
“Our sector’s growth over the past decades has hinged on investments in primary production, including improved genetics, and the expansion of export markets since the early 2000s,” he added.
“Now, approximately half of our agricultural production goes to export markets. At a national level, South Africa remains food secure, the most secure in sub-Saharan Africa, despite household-level challenges.”
To safeguard these gains, Sihlobo said, South Africa needed to ensure that farmers remained profitable and actively work on opening up as many export markets as possible.
Sihlobo also spoke about the latest Agbiz/IDC Agribusiness Confidence Index (ACI), which indicated a modest but meaningful rise in sector confidence from the previous quarter’s low levels.
“The sentiments matter, especially over the long run, for fixed investments in the agriculture and agribusiness sectors of South Africa. The ACI also plays as a lead indicator of the directional side of agricultural growth prospects over time.”
