Trade barriers threaten SACU integration

Wandile Sihlobo 

Namibia, Botswana, and Mozambique are among the few countries that have recently introduced restrictions on South African agricultural exports.

In the case of Namibia and Botswana, these are our customs union partners, the Southern African Customs Union (SACU).

An important benefit of a customs union is the free movement of goods in the common customs area. All these countries, including Mozambique, have committed to removing all trade barriers by 2030 as part of the African Continental Free Trade Area (AfCFTA).

Undoubtedly, trade restrictions undermine the spirit of trade integration. It also makes a mockery of commitments to liberalise trade on the African continent. Yet South Africa has been extremely restrained despite clear injury to its economic interests.

It is worth highlighting some cases. Namibia, Botswana, and Mozambique have unjustifiably restricted imports of South African vegetables. There is no basis for import restrictions in the common customs area to advantage domestic sectors.

These actions risk unravelling SACU, which has already fettered South Africa’s ambition to negotiate bilateral trade deals globally to boost its export sectors and create jobs. We need to take a serious look at SACU’s utility for shared economic interests in the region, as well as, crucially, for our economic interests in a changing global environment.

With food security a priority for many governments globally, the ambition to boost domestic agricultural production is understandable. Still, the approach to domestic policy, particularly in the regional perspective, should not create barriers that disadvantage producers in other countries, especially in a customs union.

It is important to maintain a coordinated regional approach to boost production capabilities across SACU countries and build regional value chains. This will not be done through restrictive measures but rather supply-side instruments that could be coordinated. Trade restrictions in SACU risk straining relations and devaluing the customs union.

Within the SACU region, there is supposed to be free movement of agricultural goods, with a few exceptions, including national security and when there are crop and animal diseases. In the recent restrictions on vegetables, fruit, and some poultry products in December, there was no such fear of animal diseases.

The restrictions were based mainly on national aspirations and on what countries intended to do to support their producers, with limited consideration of regional implications.

While it may be tempting for the affected countries to seek a strong policy response to these inconsistencies, dialogue at a higher level to ease these frictions remains an ideal path.

The region’s agriculture and food sector are interlinked; thus, the path ahead is to understand each country’s priorities and pursue them while minimising interruptions to trade flows.

Admittedly, because of its size, agroeconomic advantages and technical advancement, amongst other things, South Africa dominates the region’s agriculture and food production.

Therefore, when other countries in the region seek to increase production, a coordinated strategy with South Africa and reliance on South African agribusinesses to provide inputs are paths worth considering.

From a South African perspective, we should pick up dialogue with our partners but make it clear that we are exploring options to de-risk the future. This is important given our significant trade exposure to the region. For example, about 17% of South Africa’s US$15.1 billion in agricultural exports in 2025 went to the SACU region. This is almost comparable to South Africa’s 21% share of agricultural exports to the EU region.

In essence, the immediate priority must be the speedy resolution of the current trade-restrictive measures through structured and high-level dialogue. The introduction of import restrictions on agricultural products within a customs union is inconsistent with both the legal architecture and the spirit of regional integration.

*Wandile Sihlobo is a member of the Presidential Economic Advisory Council and a presidential envoy on agriculture and land. He is chief economist at the Agricultural Business Chamber of South Africa and a senior fellow in Stellenbosch University’s department of agricultural economics.

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