THE IMPACT OF THE SADC EPA ON SOUTH AFRICA’S AGRICULTURE AND AGRO-PROCESSING SECTORS

The EU–SADC EPA, effective October 2016, provides tariff preferences for South Africa and other SADC members, with higher benefits for processed goods. Despite this, South Africa has underutilised its quotas for several processed fruit products due to a lack of awareness, sanitary and phytosanitary (SPS) issues, and drought. The document highlights the potential for growth in the canned fruit and juice sectors, noting that while large companies dominate, there are opportunities for SMEs if barriers such as the lack of local testing laboratories and changing EU consumer preferences (e.g., reduced sugar) are addressed. It recommends establishing information portals, improving SPS capacity, and providing technical assistance for niche markets like nuts to better integrate small-scale producers into the EU value chain.

• The EU–SADC Economic Partnership Agreement (EPA), which entered into force in October 2016, provides tariff preferences for South Africa, Botswana, Lesotho, Swaziland, Namibia, and Mozambique, with preferences increasing for more processed products.
• South Africa has significantly underutilised its EPA quotas for certain processed fruits; as of October 2017, 0% of the canned tropical fruit quota and 5% of the apple juice quota were used, although the frozen orange juice quota was fully utilised.
• Low quota uptake is attributed to a lack of awareness, sanitary and phytosanitary (SPS) challenges, and drought, alongside a strategic shift by South African industries toward Asian markets where growth is faster than in the EU.
• The South African canned fruit and juice industry is labour-intensive and export-driven, with 82% of canned fruits exported in 2016 and the sector supporting approximately 100,000 farm workers.
• A critical barrier for South African SMEs is the lack of local laboratories for sophisticated product testing required by EU standards, forcing exporters to send products to Europe, which increases costs and exchange rate risks.
• EU consumer trends are shifting toward 'clean labelling', reduced sugar, and sustainability, requiring South African producers to adapt production processes and marketing to remain competitive.
• The South African government has implemented several support mechanisms, including the 2017 Agro-Processing Support Scheme, the development of AgriParks to reduce the certification burden on SMEs, and the IDC's Agro-processing Competitiveness Fund.

APA

BERTELSMANN-SCOTT, T., & MARKOWITZ, C. (2018). THE IMPACT OF THE SADC EPA ON SOUTH AFRICA’S AGRICULTURE AND AGRO-PROCESSING SECTORS. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/06/Policy-Briefing-174.pdf

Chicago

BERTELSMANN-SCOTT, TALITHA, and CHELSEA MARKOWITZ. THE IMPACT OF THE SADC EPA ON SOUTH AFRICA’S AGRICULTURE AND AGRO-PROCESSING SECTORS. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/06/Policy-Briefing-174.pdf.

Wikipedia

{{cite report |last1=BERTELSMANN-SCOTT |first1=TALITHA |last2=MARKOWITZ |first2=CHELSEA |title=THE IMPACT OF THE SADC EPA ON SOUTH AFRICA’S AGRICULTURE AND AGRO-PROCESSING SECTORS |publisher=South African Institute of International Affairs |date=June 2018 |url=https://saiia.org.za/wp-content/uploads/2018/06/Policy-Briefing-174.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bertelsmannscott2018impact, author = {BERTELSMANN-SCOTT, TALITHA and MARKOWITZ, CHELSEA}, title = {{THE IMPACT OF THE SADC EPA ON SOUTH AFRICA’S AGRICULTURE AND AGRO-PROCESSING SECTORS}}, institution = {South African Institute of International Affairs}, year = {2018}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2018/06/Policy-Briefing-174.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }