South Africa is missing out on the huge potential for agricultural exports to China, according to leading agricultural economist Wandile Sihlobo.
His criticism comes in The Conversation, a publication funded by multiple universities. His article was published after the recent meeting in Beijing of African and Chinese leaders, which he described as more of a political forum than a trade one.
Sihlobo says South Africa is an anomaly – a top agricultural exporter with limited access to China, its biggest export opportunity.
China has to feed 1.4 billion people, and in order to do this, it has to import. South Africa has the products that China needs, but is losing out to its competitors.
“It stands at number 32 in the list of countries that supply China with food. South Africa’s agricultural exports to China accounted for a mere 0.4% of Chinese imports in 2023.”
South Africa has strong political ties to China, but lacks preferential access to China’s food markets.
“This hobbles South African farmers who compete for the Chinese market with Australian and Chilean producers. Australia and Chile have secured trade agreements that give them competitive advantage.”
Sihlobo says South Africa must find a new way of engaging China to soften the current trade barriers.
“Firstly, a strategic approach to the Chinese agricultural markets needs to be adopted. This would entail dedicated teams from both South African and Chinese departments of agriculture that would deal with details of trade barriers.
“Secondly, South Africa should use the Brics platform – of which China is also a member – to call for deepening of agricultural trade among the Brics members. This would help add momentum to the bilateral engagements of South Africa and China.
“Thirdly, South Africa should encourage foreign direct investment – in particular Chinese investors – in agriculture for new production in areas which have large tracts of underutilised land. These include the Eastern Cape, KwaZulu-Natal and Limpopo provinces.
“Having Chinese nationals as partners in agricultural development could help boost trade and business ties between the two countries,” Sihlobo concludes.
