Agbiz: How SA agriculture can benefit from expanded BRICS

South Africa's agricultural market could see a significant boost with the inclusion of Saudi Arabia in the BRICS partnership. Wandile Sihlobo, the Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz), highlighted the enormous opportunity that Saudi Arabia presents for South Africa's agricultural exports. Sihlobo outlined that Saudi Arabia imports agricultural products worth roughly $21 billion annually from the world market, which surpasses Africa's total agricultural exports of under $13 billion. The inclusion of Saudi Arabia in the BRICS group not only signifies an important addition to the market but also holds the potential for South Africa to tap into a substantial market with various products. With the effective date of Saudi Arabia and other five countries joining BRICS set for January 1st, preparations are underway to ease market entry for South African exports. Sihlobo emphasized the need for collaboration between governmental departments like the Department of Trade and Industry and the Department of Agriculture, Land Reform, and Development, along with the private sector, to facilitate the process. Prioritizing products such as beef, fruits, and other potential goods will be crucial in accessing the Saudi Arabian market. While challenges may arise, particularly concerning competition from current suppliers like Brazil, India, the US, the UAE, and others, Sihlobo views the expansion as a means of diversification rather than confrontation. The move to enhance trade with Saudi Arabia and other BRICS+ countries is seen as a strategic effort to counter challenges faced in traditional markets like the EU and the US, as well as to leverage the potential growth in agricultural production in South Africa. By targeting a diversification of export markets, South Africa aims to maximize its agricultural output and secure sustainable growth in the sector. Sihlobo underscored the importance of engaging with multiple markets concurrently to ensure the continuous growth of South Africa's agricultural trade. The geopolitical implications of increased trade with Saudi Arabia and other BRICS+ nations are considered from a commercial standpoint, focusing on the opportunities for market expansion and product diversification. South Africa's efforts to expand its agricultural reach align with its goal of enhancing production and increasing export volumes to meet growing demand. With a focus on economic growth and sustainable trade relations, South Africa's agricultural sector aims to capitalize on the opportunities presented by the evolving global market dynamics.