South Africa prioritises value-added exports at IATF2025 amid changing global trade dynamics

The Minister of Trade, Industry and Competition, Parks Tau, said on Saturday that South Africa is prioritising increasing the number of value-added products it is exporting in response to the rapidly changing global environment. 

South Africa finds itself in a tight spot as its second largest trading partner, the United States, imposed a 30% tariff on the country’s exports to that market, which have heavily impacted the agriculture and automotive sectors.

In an interview with Business Report during his visit to the Intra-African Trade Fair 2025 (IATF2025) in Algeria, Tau said South Africa recognises that enhancing the export landscape through diversification was critical to accelerating its industrialisation efforts. 

Tau said the government was taking a proactive approach to adapt and explore new market opportunities while simultaneously elevating the quality of trade with existing partners.

“Diversification of our export markets is a critical lever that we are utilizing to accelerate our industrialisation ambition. As the global trading environment changes, South Africa must look to be agile in our approach to exploring new markets. But we must also improve the quality of our trade with our existing trading partners,” he said.

“We want to increase the number of value-added products that we export to ensure that we are driving an industrial agenda that will improve local economic growth and job creation.”

The IATF2025 in Algiers is projected to attract an estimated 35 000 attendees and more than 2 000 exhibitors, including businesses from the African continent and globally.

This is projected to translate into over $44 billion in trade and investment deals.

The biennial IATF is organised by Afreximbank in partnership with the African Union Commission and African Continental Free Trade Area (AfCFTA) Secretariat and aims to increase intra-African trade and showcase the investment opportunities across Africa.

Tau said South Africa was accelerating its trade relations on the African continent.

“We view the AfCFTA as a critical lever to unlock the potential that exists on the African continent. South Africa is leading implementation of the AfCFTA. We have ratified the protocols of the agreement and are increasing our trade outputs utilizing the AfCFTA,” Tau said.

“We believe that there are critical sectors, which South Africa can play a leading role in the context of the continent, including manufacturing, autos, pharmaceuticals and rail rolling stock. The IATF is an ideal platform for us to showcase South African firms on the continental stage. We have also utilized the opportunity of being in Algeria to strengthen our bilateral relations.”

Meanwhile, Tau and Limpopo Premier, Dr Phophi Ramathuba, met with the Switzerland delegation led by Ivo Germann, the representative of the Swiss State Secretariat for Economic Affairs SECO in Algeria on Saturday.

The meeting discussed issues of mutual interest between the countries. Focusing on collaboration in different sectors of the economy.

These issues include increasing and diversifying bilateral trade, review of the Southern Africa Custom Union - European Free Trade Area Free Trade Agreement.The meeting also focused on increasing investment in targeted sectors of renewable energy, digital economy, advanced manufacturing, pharmaceuticals, and infrastructure.

“Switzerland is a strategic economic partner for South Africa. It is amongst the top ten investors in the country and the largest trading partner in the European Free Trade Area. Similarly, South Africa is Switzerland’s largest trading and investment destination on the African continent,” said the dtic.

South Africa’s exports to  Switzerland are dominated by mineral products, accounting for 77% of total  exports, while agricultural products only account for 1% of total exports.

Swiss direct investment stock in South Africa grew from just under $1.9 billion in 2022 to over $2.5bn in 2023, representing a substantial increase hitting just under 2.5% increase as a proportion of total inward foreign direct investment flows.

BUSINES REPORT