The announcement last week that South Africa had reaffirmed its strategic partnership with Brazil, with ambitions to deepen economic ties, was presented as a diplomatic win; however, this being led by the Department of International Relations and Cooperation instead of the Department of Trade, Industry and Competition, suggests it was a political conversation, not an economic one, business organisation Business Leadership South Africa CEO Busi Mavuso writes in her weekly newsletter.
She points out that South Africa requires a serious trade strategy that is built on analysis of where it can actually compete, not on the optics of summits.
“Brazil is a case study in why getting this wrong might be costly,” Mavuso posits.
She highlights the importance of South Africa diversifying its trade relationships; and of international trade to the country’s economic growth outlook. “We need our goods to be able to reach diverse markets where they can be competitive.”
The work that is under way to improve the performance of the country’s logistics system is one part of the competitiveness equation, Mavuso emphasises, calling for this to be complemented by a trade strategy that strikes agreements with suitable markets to remove trade barriers.
