G20 meetings present new trade opportunities for South African SMEs

In a significant turn of events, the African Growth and Opportunity Act (AGOA) officially lapsed on 30 September 2025, ushering in a new era for South African trade relations with the United States.

This development comes amidst renewed U.S. tariffs and proposals for a potential, albeit short-term, extension of AGOA, further deepening uncertainty around the future of U.S.-Africa trade interactions.

Despite this challenging landscape, opportunities are emerging for South African businesses, particularly small and medium-sized enterprises (SMEs).

At the recent G20 meetings, two vital Memoranda of Intent were solidified with Brazil and Japan, promising to enhance trade, technology exchange, and agricultural cooperation.

John Steenhuisen, South Africa's Minister of Agriculture, hailed these agreements as a testament to the shared vision for food security and competitiveness.

Particularly notable is the agreement with Japan, which focuses on the advancement of smallholder farmers—a crucial segment of South Africa's agricultural sector.

“We must always view these efforts through the lens of what benefits our farmers, especially smallholders, and strengthens the food security of our people,” Steenhuisen stated. This cooperation will encompass knowledge sharing, technical exchanges, and potential establishment of a Joint Agricultural Working Committee.

The emerging trade partnerships between South Africa and Brazil exemplify this dynamic shift; agricultural trade figures illustrate a remarkable increase, with trade soaring to R9.7 billion in 2024—an 80.5% increase compared to R5.4 billion in 2020. South African exports to Brazil expanded by nearly 93% during the same timeframe, underscoring the importance of diversifying trade relationships.

As ministers, heads of state, and trade delegations convened at the G20, South African SMEs were encouraged to actively exploit these new opportunities, focusing on market diversification in response to the evolving global trade landscape.

FATF Grey List exit: a boon for SMEs

In another promising development, South Africa appears poised to exit the Financial Action Task Force (FATF) grey list ahead of the Plenary meeting on 24 October, having substantially completed all 22 action items in its Action Plan.

This exit could prove transformative for SMEs struggling under current payment delays and elevated compliance costs stemming from enhanced due diligence requirements.

As Financial institutions warned about ramifications for South Africa's financial sector with continued grey list status, the promise of delisting signals an end to augmented restrictions, allowing for a more favourable operational environment.

Access to trade finance and letters of credit could normalise, alleviating the burdens that have disproportionately impacted smaller exporters stifled by transaction caps and additional documentation demands.

National Treasury stressed the importance of this transition, noting that improvements to South Africa’s anti-money laundering and counter-terrorism financing regime are essential not only to exit the grey list but also to fortify the battle against crime and corruption—addressing a longstanding legacy of state capture.

Expanding the technology ecosystem to drive innovation

A key player in this evolving landscape is the AI Expo Africa 2025, scheduled from 29-31 October in Sandton, which is set to attract over 3,000 delegates and showcase more than 110 exhibitors—a testament to the growing influence of artificial intelligence on business innovation. For South African SMEs, this expo represents a significant opportunity for networking and funding access.

The AI4Good Impact Africa Pavilion specifically targets startups aimed at contributing to the UN Sustainable Development Goals, presenting valuable connections and integration with a broader community of over 50,000 smart tech practitioners.

Strategic economic guidance for SMEs

As South Africa finds itself at a pivotal moment, with StatsSA set to release essential economic data—such as Consumer Price Index figures and manufacturing production statistics—this information will be instrumental for SMEs in devising business strategies and planning financing decisions. Following current trends, a repo rate of 7.0% alongside stable inflation at 3.3% provides vital indicators for SMEs weighing expansion and investment opportunities.

The convergence of an impending FATF delisting, new agricultural trade agreements, and diversification initiatives arising from recent G20 discussions presents a unique moment for South African SMEs. Even as AGOA's expiration poses short-term job pressures, the engaged pursuit of emerging market integration may just be the key to unlocking continued growth and post-pandemic recovery.

BUSINESS REPORT