South Africa's trade policy post-COVID-19

This research paper by the South African Institute of International Affairs examines the necessary adaptations for South Africa's trade policy following the COVID-19 pandemic. It advocates for a revised Trade Policy Strategic Framework that emphasizes regional integration through the AfCFTA and SACU, a strategic redesign of South Africa's role within the WTO, and the diversification of global trading partnerships to ensure economic resilience in the 2020s.

• The COVID-19 pandemic exposed the vulnerability of global value chains (GVCs), particularly for industries relying on 'just in time' supply chains like hi-tech manufacturing. This may lead firms to shift toward 'just in case' systems that prioritize security over efficiency.
• South Africa is expected to increase state involvement in industrial development and use trade policies as a tool for this purpose, a trend described as 'big government is back'. However, the government's capacity to guide these investments is limited by financial and institutional constraints.
• The Southern African Customs Union (SACU) requires a more transparent and predictable revenue-sharing arrangement to better handle economic shocks. The pandemic significantly impacted revenues, with the SACU Secretariat estimating a monthly loss of up to ZAR 7 billion.
• The African Continental Free Trade Agreement (AfCFTA) is expected to increase intra-regional trade by 15% to 25% through the elimination of tariffs on 90% of goods over ten years. This allows South African manufacturers to diversify exports into West and North Africa.
• South Africa should move away from its strict adherence to the 2001 Doha Development Agenda at the WTO, as the agenda focuses on 20th-century issues. Instead, it should work strategically to redesign the WTO to be more representative of developing nations and inclusive of investment and environmental concerns.
• Preferential market access to the US via the African Growth and Opportunities Act (AGOA) is set to expire by 2025. South Africa must decide whether to negotiate a bilateral free trade agreement with the US, weighing export benefits against risks like regulatory reform requests regarding intellectual property and investment.

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} }