South Africa must prioritize China in its efforts to boost agricultural exports, despite limited current access to the vast Chinese market, according to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz).
“Although we don’t have broad access to China for our agricultural products, there is enormous potential,” Sihlobo said.
His comments come in the wake of recent remarks by China’s Agricultural Minister, Han Jun, who reaffirmed the country’s commitment to food security. Speaking on March 8, Han Jun noted, “As a nation of 1.4 billion people, we must rely on ourselves to feed our population. We cannot depend on others. Food security is a priority, and we must always remain vigilant.”
While China aims for greater self-reliance, Sihlobo pointed out that the country remains the world’s largest agricultural importer, accounting for 11% of global agricultural imports. “China’s reality of being an importer won’t change soon,” he said. “It presents the biggest opportunity, mainly because of its population and economic size.”
China, the world’s second-largest economy after the US, currently runs an agricultural trade deficit of approximately US$117 billion. This, Sihlobo argued, represents a significant gap that countries with strong agricultural sectors, like South Africa, could help fill.
However, South Africa has yet to capitalize on this opportunity. “We have lagged behind our competitors in gaining from this growth in Chinese imports,” Sihlobo noted. “South Africa ranked 32nd among countries supplying food to China in 2023, accounting for just 0.4% of China’s total agricultural imports.”
He emphasized that China’s scale warrants greater attention from South African policymakers, particularly as the country’s agricultural production continues to increase. “The South African agricultural sector has been calling for greater efforts to increase exports to China,” he said.
China’s major agricultural imports include oilseeds, meat, grains, fruits and nuts, cotton, beverages and spirits, sugar, wool, and vegetables—many of which South Africa already produces in surplus and exports globally.
Sihlobo stressed the need for a strategic approach to expanding South Africa’s agricultural footprint in China. “It makes sense for South Africa to focus more on widening export markets to China. This means pushing for a reduction in import tariffs that China currently levies on some of our agricultural products,” he said. “Removing phytosanitary constraints on various products is also key.”
For this to happen, Sihlobo believes that three South African government departments must take the lead: Trade, Industry and Competition; Agriculture; and International Relations and Cooperation. “The South African authorities must continuously engage China to soften these barriers and encourage agricultural trade between our countries,” he said.
With China’s growing demand for agricultural products and South Africa’s ability to supply high-quality goods, Sihlobo remains optimistic about the prospects for stronger trade ties. “There is room for more ambitious export efforts,” he said.
