A recent call for African countries to expand trade with Russia -particularly in the area of agriculture- has come as a reprieve for the sector in South Africa, as his nation suffered severe setbacks in recent months.
Coming at a time the sector is plagued by drought, recurring foot and mouth outbreak, the anticipated expansion in trade also boosts the South African government’s drive to expand its export base amid dwindling opportunities in existing markets.
South Africa, the continent’s most advanced economy, enjoys an agricultural trade surplus with Russia, hence economist Wandile Sihlobo believes the call for increased agricultural trade between Africa and Russia sets a good basis for the Southern African country to explore the means of increasing its share within the Russian agricultural market.
He noted that in terms of reciprocity, Russia is already a notable supplier of wheat to South Africa and could increase its share if it were to compete comparatively with wheat suppliers such as Ukraine and Lithuania, amongst others.
Russia as 16th largest agricultural market of South Africa’s in 2018
In 2018, Russia was South Africa’s 16th largest agricultural market. South Africa’s agricultural sector already participates within Russia’s market, although ranked as the 29th country supplying agricultural products to Russia in 2018.
Source: cajnewsafrica.com