South Africa's trade policy post-COVID-19

The document argues that South Africa must update its Trade Policy Strategic Framework to address the 'new normal' post-COVID-19, focusing on regional integration, digital trade, and a redesigned multilateral trading system. It highlights the critical role of the Southern African Customs Union (SACU) and the African Continental Free Trade Area (AfCFTA) in diversifying markets and enhancing industrialisation, while urging a strategic shift in South Africa's approach to the World Trade Organization (WTO) and traditional partners like the US and EU.

• The COVID-19 pandemic exposed the vulnerability of global value chains (GVCs) and the risks associated with 'just in time' supply chain efficiency, potentially pushing firms toward 'just in case' systems.
• South Africa is expected to see a renewed focus on import substitution and the use of trade policies for industrial development, though the government's capacity to guide these investments is limited by financial and institutional constraints.
• The Southern African Customs Union (SACU) faces significant revenue losses due to the pandemic, with the SACU Secretariat estimating a reduction in customs revenues of up to ZAR 7 billion per month, largely driven by a 89% decline in vehicle and component exports from South Africa between March and April 2020.
• The African Continental Free Trade Area (AfCFTA) is expected to increase intra-regional trade by 15% to 25% through the elimination of tariffs on 90% of goods, allowing South African manufacturers to diversify exports into West and North Africa.
• South Africa needs to move beyond its insistence on concluding the Doha Development Agenda at the WTO and instead work strategically to redesign the organization to reflect current economic power shifts and new trade issues, including environmental concerns.
• Preferential market access to the US via the African Growth and Opportunities Act (AGOA) is set to expire by 2025, necessitating a decision on whether to negotiate a reciprocal bilateral free trade agreement.

APA

South African Institute of International Affairs (2020). South Africa's trade policy post-COVID-19. https://saiia.org.za/research/south-africas-trade-policy-post-covid-19/

Chicago

South African Institute of International Affairs. South Africa's trade policy post-COVID-19. 2020. https://saiia.org.za/research/south-africas-trade-policy-post-covid-19/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=South Africa's trade policy post-COVID-19 |date=21 September 2020 |url=https://saiia.org.za/research/south-africas-trade-policy-post-covid-19/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020south, author = {{South African Institute of International Affairs}}, title = {{South Africa's trade policy post-COVID-19}}, institution = {South African Institute of International Affairs}, year = {2020}, month = sep, url = {https://saiia.org.za/research/south-africas-trade-policy-post-covid-19/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }