South Africa’s biggest trading partners by Seth Thorne- why are we exporting electricity??

[Nat Quinn]

South Africa’s biggest trading partners BY Seth Thorne

South Africa is sitting on an approximately R45.19 billion trade surplus for the months of January to May 2024, with the People’s Republic of China maintaining its top spot as the country’s largest trading partner.

This is according to preliminary trade statistics from the South African Revenue Service (SARS) for the first five months of 2024.

Exports and Imports Breakdown

According to SARS, during this period, South Africa recorded R812.34 billion of exports and R767.15 billion of imports.

This leaves the country with a preliminary trade surplus of R45.19 billion for these 5 months, which is a 148.3% improvement from the R18.2 billion trade balance surplus recorded in the same period of 2023.

From January to May 2024, South Africa’s largest exports were:

• Gold, Platinum, Diamonds, Jewellery and Precious Metals – R144.48 billion;

• Ores – R132.08 billion;

• Vehicles and accessories – R89.62 billion

• Crude Oil, Coal, Petroleum and Electricity – R79.84 billion;

• Iron and Steel – R48.07 billion

During the same period, the country’s largest imports were:

• Crude oil, Coal, Petroleum and Electricity – R160.74 billion;

• Catalytic Converters, Computer and Mechanical Appliances – R97.76 billion;

• Cellphones, Electrical Equipment and Machinery – R74.04 billion;

• Vehicle Components – R69.18 billion;

• Vehicles and accessories – R51.29 billion.

Intercontinental Trade and Trade Balances

Looking at intercontinental trade for this five-month period, South Africa’s largest export partners remain that of Asia (R247.81 billion) and Africa (R227.65 billion).

These two continents are also where South Africa records its largest trade deficit and surplus respectively, with a R133.91 billion deficit from Asia and a R149.27 billion surplus from Africa.

The country’s largest import continents are that of Asia (R381.72 billion) and Europe (R219.25 billion).

South Africa’s biggest trade deficit for is with China, with the country sitting with a R61.36 billion trade deficit. This is followed by Saudi Arabia (-R16.9 billion), India (-R16.89 billion) and Nigeria (-R17.88 billion).

Trade between China and South Africa is set to grow further after several announcements on trade were made at the BRICS summit, held in South Africa in August 2023.

At the summit, the countries said that they have agreed to narrow the trade deficit by increasing access to Chinese markets for South African products.

The biggest trade surplus for 2024 thus far is from Mozambique, sitting at R42.30 billion. This is followed by the United Kingdom (+R29.08 billion), Botswana (+R29.03 billion) and Zimbabwe (+R24.44 billion).

Table 1: South African exports and imports from January to May 2024

World Region	Exports	Imports	Trade surplus/deficit
Africa	R227.65 billion	R78.38 billion	R149.27 billion
Europe	R195.18 billion	R219.25 billion	R24.07 billion
Americas	R74.25 billion	R75.79 billion	R1.54 billion
Asia	R247.81 billion	R381.72 billion	R133.91 billion
Oceana	R9.02 billion	R9.28 billion	R0.26 billion
Other unclassified	R52.66 billion	R2.74 billion	R49.92 billion
Ship/Aircraft	R5.78 billion
Total	R812.34 billion	R767.15 billion	R45.19 billion

Source: SARS. Note: The “Ship/Aircraft” category only has data under exports and not under imports, hence it is left blank in the Imports table.

Looking at South Africa’s biggest trade partners by country, China still takes up the lions share.

Looking at exports for January to May 2024, the largest countries were:

1. China – R93.24 billion;

2. United States – R61.49 billion;

3. Germany – R54.76 billion;

4. Mozambique – R50.90 billion;

5. United Kingdom – R42.24 billion.

South Africa’s largest export partners (January to May 2024). Graphic: SARS

Looking at South Africa’s largest import partners for the first 5 months of 2024, these were:

1. China – R154.74 billion;

2. Germany – R61.26 billion;

3. India – R52.06 billion;

4. United States – R50.59 billion;

5. United Arab Emirates – R24.95 billion.

South Africa’s largest import partners (January to May 2024). Graphic: SARS

Looking at the month of May 2024, South Africa recorded R158.3 billion in imports (up from R48.86 in May 2010) and R178.3 billion in exports (up from R52.78 billion in May 2010).

This has resulted in its trade surplus going from R3.92 billion, to R20.09 billion 14 years later.

“This surplus was attributable to exports of R178.4 billion and imports of R158.3 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN),” said SARS.

Trade balance trend. Source: SARS

DTIC Review and Strategic Plans

The Department of Trade, Industry, and Competition’s (DTIC) Industrial Policy & Strategy Review, published in May 2024, emphasised that trade policy was a pivotal focus during the sixth administration and remains critical for the seventh, all in hopes of reducing the country’s trade deficit with numerous countries.

Trade balances with countries for the first 5 months of 2024. Source: SARS

It said that the DTIC’s objective has been to enhance South Africa’s exports through a balanced approach that secures domestic market space for local companies while expanding access to foreign markets.

In its review of industrial policy during the previous administration, the DTIC highlighted efforts to boost trade, especially exports, and foster economic development.

However, the DTIC acknowledged setbacks due to the long-lasting implications of state capture, which undermined previous progress.

Despite claiming to shield its own institutions and resources, state capture strained state finances and capacity, impacting efforts to localise production for infrastructure projects and causing crises in public infrastructure, particularly in electricity and rail services.

In his inaugural budget vote speech, newly appointed DTIC Minister Parks Tau outlined plans to reduce South Africa’s dependence on its small domestic market by implementing new export measures and enhancing existing ones.

He emphasised expanding the country’s export footprint and leveraging memberships in international organizations such as BRICS+, the African Continental Free Trade Area (AfCFTA), AGOA, and the Economic Partnership Agreement with the EU.

Deputy Minister Andrew Whitfield reinforced these goals, envisioning South Africa as an export-oriented economy.

He said that the DTIC’s plan for the seventh is to improve the competitiveness of local industries in global markets by streamlining export processes, reducing trade barriers, providing financial and technical support to exporters, and cultivating beneficial trade alliances with other nations.

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