Global trade shifts threaten SA’s agricultural sector

South Africa's agricultural sector is facing challenges amidst shifting global trade dynamics, including U.S. tariff threats, rising protectionism, and tensions with the EU. The $13 billion agri-export sector is at a crossroads, requiring a strategic response to navigate these uncertainties. Dr. Sifiso Ntombela, President of the Agricultural Economics Association of South Africa, sheds light on the risks and opportunities facing the industry. Dr. Ntombela highlights the historical focus on export-oriented strategies in South Africa's agricultural sector. Over the years, the country has targeted high-demand commodities in international markets to drive foreign earnings and job creation. However, the landscape is evolving, with increasing protectionism posing challenges to South Africa's export capabilities. To adapt and thrive in this changing environment, Dr. Ntombela emphasizes the importance of export diversification and maintaining diplomatic relations. South Africa has leveraged trade agreements to expand beyond traditional markets like Europe and the U.S., tapping into the growing Asian markets. Furthermore, the country's involvement in the Africa Agenda 2063 and the African Continental Free Trade Agreement underscores the shift towards intra-African trade and investment partnerships. The interview delves into the need for South Africa to enhance product differentiation, foster entrepreneurship, and strengthen farmer training programs. Collaborations with the private sector, such as the Metropolitan Collective Shapers initiative, are cited as valuable in driving sectoral growth and competitiveness. Dr. Ntombela acknowledges past efforts in public-private partnerships and enabling young farmers but underscores the importance of accelerating the pace of diversification and implementation. He highlights successful case studies in South Africa, such as the transformation of the soya bean industry from a net importer to a leading global producer through strategic investments in research and development. Regarding the African Continental Free Trade Agreement (AfCFTA), Dr. Ntombela sees progress in intra-African trade, albeit gradual. South Africa is witnessing expanded trade ties within the SADC and beyond, showcasing a growing exchange of goods, services, and investments across regions. The agreement's provisions for free movement of persons and technology transfer hold promise for deeper regional integration and economic growth. Amidst discussions on sustainable long-term strategies, Dr. Ntombela underscores the need for a balanced approach to export-led growth and domestic food security. The COVID-19 pandemic underscored the importance of self-sufficiency and resilient agricultural systems at the household level. He advocates for infrastructure development and value addition to maximize local resources and attract sustainable investments. In conclusion, Dr. Ntombela emphasizes the importance of aligning South Africa's agricultural sector with evolving global trade dynamics. By fostering innovation, diversification, and strategic partnerships, the country can position itself for long-term success in the face of increasing trade complexities and uncertainties.