SA trade flows ‘realigning'

REFOCUS: DIVERSIFICATION INTO ASIA, AFRICA, EUROPE GAINING MOMENTUM – KAL GROUP → 39% of agricultural exports go to SADC and 25% to EU.

- Ina Opperman

The US tariff of 30% on goods exported to the US from South Africa has already left its mark on the country's economy, but an expert says the disruption is accelerating moves to trade with other countries, which is good for SA's long-term economic future.

Sean Walsh, CEO of KAL Group, a JSE-listed South African agricultural, fuel and convenience speciality retailer, said: “Trade flows are starting to realign and long-planned diversification into Asia, Africa and Europe are gaining momentum, supported by better logistics and stronger trade partnerships.”

Walsh said while it is true that the US is one of South Africa's most important trading partners, the US is not dominant when it comes to agriculture.

“This is supported by trade data from a recent Agbiz research report, which shows that in the first quarter of 2025, SADC [Southern African Development Community] markets accounted for roughly 39% of South Africa’s agricultural exports, followed by the European Union at about 25%.

“Other major destinations include the United Kingdom, China and regional African markets. The US accounted for only 4-6.5% of total agricultural exports over recent years.”