South Africa pursues a strategic approach to trade policy, intrinsically linked to its national development objectives. The core goal is to support industrial development, create decent jobs, and reduce poverty and inequality by diversifying the economy away from its reliance on traditional commodities.

The policy framework is designed to build domestic industrial capacity through a focus on localisation, beneficiation, and moving up the value chain in key sectors. This involves a “developmental tariff setting” approach, where tariffs are used as an instrument of industrial policy to support downstream, labour-creating manufacturing while ensuring upstream inputs remain competitive.

The strategy also emphasises inclusive growth, with specific programs aimed at integrating small businesses, women, and youth into the economy.

• World Trade Organisation (WTO): As an active member, South Africa is integrated into the global rules-based trading system.
• EU-SADC Economic Partnership Agreement (EPA): In force since 2016, replacing the TDCA trade chapter, and providing enhanced duty-free access for many South African products—including significant quotas for wine, sugar, and ethanol—into the EU market.
• Other Key Agreements: Agreements with the United Kingdom (post-Brexit rollover of EPA terms), the European Free Trade Association (EFTA), and the Southern Common Market (MERCOSUR), negotiated as part of SACU.

• AfCFTA (African Continental Free Trade Area): A landmark opportunity to expand exports of value-added goods and services to new markets in West and North Africa; central to SA’s developmental regional integration agenda.
• SADC: As the region’s largest economy, South Africa is a leader within SADC. The SADC Trade Protocol underpins deep regional integration, with most of SA’s intra-Africa trade occurring within this bloc.
• SACU (Southern African Customs Union): Membership in the world’s oldest customs union allows free movement of goods and a common external tariff; South Africa negotiates international trade agreements as part of SACU.

• InvestSA: Within the dtic, InvestSA is the national investment promotion agency and one-stop shop to attract FDI and streamline investor support.
• Special Economic Zones (SEZs): A robust SEZ programme (SEZ Act, 2014) evolved from IDZs. Zones provide world-class infrastructure and targeted support. Key SEZs: Coega (automotive, agro-processing), Dube TradePort (logistics, manufacturing), East London (automotive), Atlantis (Greentech).
• SEZ Incentives:
  • Preferential corporate income tax rate of 15%.
  • Building allowances and employment tax incentives.
  • Relief from customs and excise duties in Customs Controlled Areas.

South Africa is executing a clear strategy to enhance its industrial base and diversify its export basket. Sector-specific Master Plans (automotive, poultry, clothing) are central to boosting local production and competitiveness.

Current Trade Snapshot:

• Primary Exports: Precious metals/minerals (platinum, gold, iron ore), motor vehicles, coal.
• Key Imports: Mineral fuels (refined and crude), machinery, vehicles, telecommunications equipment.
• Key Trading Partners: China (largest partner), United States, Germany; significant trade within SADC.

• Automotive: The APDP has attracted major global automakers, making vehicles and components leading manufactured exports; SEZs such as Coega and East London are ecosystem anchors.
• Agro-processing: Moving beyond raw exports to processed foods, high-quality wines, and beverages for global markets.
• Mining & Beneficiation: Developing downstream industries to process platinum, chromium, and manganese into higher-value products before export.
• Green Technology: The Atlantis SEZ near Cape Town is developing as a hub for renewable energy component manufacturing.

South Africa has a highly developed network of ports and transport corridors connecting its industrial heartland to global markets and landlocked neighbours.

• Port of Durban: The busiest container port in sub-Saharan Africa; primary gateway for containerised goods and automotive exports.
• Ports of Cape Town & Coega: Cape Town is crucial for agricultural exports with extensive cold storage; Coega (Gqeberha/Port Elizabeth) is a deep-water hub for automotive and bulk trade.
• Maputo Development Corridor: A flagship SDI restoring the trade route between Gauteng/Mpumalanga and the Port of Maputo, catalysing private investment in infrastructure and industry.
• North-South Corridor: High-priority corridor improving the artery from Durban through Botswana and Zimbabwe to the Copperbelt in Zambia and the DRC.

• Customs Modernisation: SARS has undertaken extensive programmes to enhance efficiency, secure supply chains, and facilitate legitimate trade.
• Single Window: A Single Window system is under development to let traders submit all regulatory documents via one online portal, reducing bureaucracy and clearance times.