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South Africa unveils ‘Butterfly Strategy’, a multi-market export drive amid rising protectionism

EXPORT STRATEGY

Siphelele Dludla|Published

Deputy Minister of Trade, Industry, and Competition, Zuko Godlimpi, speaking at the South African Export Symposium and Expo on Tuesday, said the strategy was designed to help the country move beyond its overreliance on a handful of traditional markets and commodities, creating a more balanced, resilient export base.

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Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, has unveiled a new export diversification approach — dubbed the Butterfly Strategy — positioning South Africa to spread its trade wings across multiple global markets amid rising protectionism and shifting economic power.

Speaking at the South African Export Symposium and Expo on Tuesday, Godlimpi said the strategy was designed to help the country move beyond its overreliance on a handful of traditional markets and commodities, creating a more balanced, resilient export base.

"Our export basket remains too concentrated on a handful of markets and too dependent on raw materials rather than value-added products," Godlimpi said.

"Like a butterfly that pollinates multiple flowers, South Africa must establish trade flows across every continent. Our economic resilience depends on our ability to diversify, to connect, and to adapt."

Godlimpi said the initiative comes at a critical juncture following the United States’ recent 30% tariff hike on key South African exports — a move he warned could threaten up to 30 000 local jobs.

The Butterfly Strategy, Godlimpi said, was a direct response to such global shocks. At the heart of the strategy is Africa itself.

Godlimpi highlighted the African Continental Free Trade Area (AfCFTA) as “the single most significant opportunity of a generation,” opening a market of 1.3 billion people and a combined GDP of $3.4 trillion.

"Our agricultural exports to Africa already demonstrate the enormous appetite for South African products. We must leverage our manufacturing base, financial services, logistics capabilities and established brands to become Africa's preferred partner," he said.

Beyond Africa, the Butterfly Strategy maps out five key wings of expansion:

  • BRICS+ and emerging markets such as Brazil, India, China, and Saudi Arabia, offering vast consumer bases and growing middle classes.

  • ASEAN economies like Indonesia, Vietnam, and Thailand — young, dynamic, and rapidly industrialising.

  • The Gulf States, including the UAE and Qatar, with wealthy, sophisticated consumers seeking reliable suppliers.

  • Traditional European partners, where South Africa retains strong ties through existing trade agreements.

  • Latin America, described as an “often-overlooked” region with shared developmental challenges and opportunities.

Godlimpi said the key was pursuing all these markets simultaneously with intelligence, coordination, and persistence, but added that this requires nimble exporters, government support through trade missions and market intelligence, financial institutions understanding export finance, and a whole-of-nation approach where business, labour and government work in concert.

"South Africa has negotiated numerous trade agreements creating preferential access to markets containing billions of consumers. Yet many remain underutilised. Too many businesses don't know these agreements exist, don't understand how to use them or find administrative requirements too burdensome," Godlimpi said.

Trade agreements are not ornamental documents; they are tools in the competitive battle for global market share. Trade agreements must also evolve to address 21st Century challenges including e-commerce, digital services, environmental standards and labour rights. We must shape trade rules that protect our interests while enabling fair competition and safeguarding against unilateral actions like current US tariffs."

The Butterfly Strategy is also anchored in value addition — shifting from exporting raw materials to exporting finished goods and advanced services.

Godlimpi said beneficiation, agro-processing, and high-value manufacturing would be the foundation of a more inclusive and sustainable export economy.

"We are among the world's leading mineral producers with abundant agricultural potential. However, if we simply export raw materials, we capture only a tiny fraction of their potential value and create relatively few jobs," he said.

"Value addition, transforming raw materials into higher-value products is fundamental to our industrialisation strategy. When we export raw platinum, we capture perhaps ten to twenty percent of final value. When we beneficiate that platinum into finished products here, we capture much more value and create high-skilled jobs."

Brand South Africa CEO, Neville Matjie, who also addressed the summit, said the AfCFTA provides a platform for South Africa to lead continental industrialisation and trade integration.

“Intra-African trade is not just about exchanging goods,” Matjie said. “It’s about building value chains, creating jobs, and fostering innovation across borders.”

Matjie noted that Africa’s trade with the rest of the world has surged by over 200% since 2000, with inflation and debt levels improving significantly.

He said South Africa’s competitive advantages — from logistics and manufacturing capability to product quality and established trade networks — make it well-positioned to become a hub for continental trade.

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