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Trade contrast: South Africa shut out in Washington, welcomed in Asia and beyond

Simon Osuji by Simon Osuji
September 3, 2025
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Trade contrast: South Africa shut out in Washington, welcomed in Asia and beyond
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From Tokyo to New Delhi, Moscow and Beijing, South Africa is being welcomed as a strategic gateway to Africa’s billion-strong consumer base, positioning the country as an increasingly sought-after partner in international trade and investment.

South Africa’s relationship with the United States has soured under President Trump, whose sweeping trade measures and policy stances have battered Pretoria’s access to U.S. markets.

In April 2025, Washington slapped South African exports with a 30% reciprocal tariff, the steepest in Sub-Saharan Africa which threatened major sectors like automotive, agriculture, and manufacturing.

Business confidence has slumped, with export disruptions expected to cost tens of thousands of jobs and significantly slow GDP growth.

Yet, amid this chill from Washington, South Africa is finding a warmer reception on the global stage.

South Africa faces trade challenges due to U.S. tariffs under President Trump, impacting key economic sectors.

Japan, Russia, and China have all taken steps in recent months to strengthen trade and investment ties with Pretoria, presenting alternatives that not only signal confidence in South Africa’s economy but also highlight its strategic role as Africa’s primary gateway market.

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Japanese confidence in South Africa

On the sidelines of the 9th Tokyo International Conference on African Development (TICAD), South Africa hosted a high-level business forum to pitch itself as a leading destination for Japanese investment.

Takafumi Suzuki, executive vice president of the Japan External Trade Organisation (JETRO), remarked that TICAD offers a chance to “create and rebuild new relationships between Africa, South Africa, and Japan.”

Meanwhile, Toshi Imai, president and chief executive officer of Toyota Tsusho Corporation, hailed South Africa’s automotive industry, noting the success of Toyota South Africa’s first hybrid car launched in 2021, which has since become a best-seller across the continent.

“South Africa is so important for Toyota and Toyota South Africa is a brand for Africa. With the AfCFTA coming, cars produced in South Africa will go to the African continent. South Africa is a gateway for Africa,” Imai affirmed.

Moscow’s deepening partnership

South Africa has also moved to expand ties with Russia.

In June, Deputy President Paul Mashatile led a high-level delegation of eight ministers and deputy ministers to Moscow, where he met Russian Prime Minister Mikhail Mishustin.

South Africa has pressed for infrastructure partnership with Russia identifying the state-owned logistics giant Transnet as a potential collaborator in port, rail, and freight upgrades.

The talks centered on strengthening cooperation across trade, energy, agriculture, healthcare, logistics, and infrastructure.

Mashatile highlighted South Africa’s geographic advantage, telling Russian officials: “Once you are in South Africa, you have access to a market of over one billion people across Africa. We want to invite Russian companies to partner with us, and we are also keen on collaboration with state-owned enterprises.”

The delegation pressed for infrastructure partnerships, with South Africa’s state-owned logistics giant Transnet identified as a potential collaborator in port, rail, and freight upgrades.

Beijing’s agricultural opening

China has likewise taken significant steps toward expanding trade with Pretoria.

During a recent working visit, South Africa’s Agriculture Minister John Steenhuisen confirmed that Beijing had tabled a draft protocol for the export of five stone fruits: apricots, peaches, nectarines, plums, and prunes.

“This is the first time that China has negotiated more than one product with us at a time,” Steenhuisen explained, noting that China’s past trade agreements usually focused narrowly on single commodities.

South Africa’s access to China’s vast consumer market strengthens Pretoria’s agricultural diversification strategy,

Steenhuisen said the agreement could “open huge opportunities” for South Africa’s fruit industry, a critical export sector.

By gaining access to China’s vast consumer market, Pretoria strengthens its agricultural diversification strategy, offsetting the risks posed by tariff restrictions in Washington.

BRICS Partnership

South Africa’s trade diplomacy also extends to its role in BRICS, where it is the only African member of the powerful economic bloc.

Pretoria has consistently highlighted BRICS as a platform to strengthen trade, investment, and industrial cooperation with emerging economies outside the Western orbit.

With the bloc’s expansion in January to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, the new BRICS+ now represents nearly a quarter of global GDP, two-fifths of global trade, and almost half of the world’s population, according to the Boston Consulting Group. Pretoria sees this as an opportunity to shift Africa’s trade away from raw commodities toward value-added goods, strengthening its place in emerging markets at a time when relations with Washington remain strained.

Indian Firms Expand Presence in South Africa

India is also reinforcing its economic footprint in South Africa. Bilateral trade between the two countries has climbed from $8 billion to $13 billion in five years, supported by rising exports of petroleum, pharmaceuticals, and automobiles.

Indian companies have invested nearly $10 billion in South Africa, with more than 150 firms active across IT, mining, automobiles, and manufacturing.

Automaker Tata Motors recently announced its return to South Africa’s passenger vehicle market through a partnership with Motus Holdings, while Mahindra has expanded its local operations. In services, firms like Infosys, Wipro, and TCS have also established strong presences.

Indian companies have invested nearly $10 billion in South Africa with Automaker Tata Motors making a comeback to the nation's vehicle market

Beyond corporate investments, the launch of the India–South Africa Chamber of Commerce and EXIM Bank’s new trade financing agreements are expected to accelerate cross-border deals.

India’s push underscores South Africa’s role not just as a bilateral partner but also as a gateway to the wider African market.

A pivot away from Washington?

While President Trump’s tariffs and tightened policies have complicated Pretoria’s access to U.S. markets, Japan, Russia, and China have moved in the opposite direction, actively welcoming South Africa into their economies.

For Pretoria, the message is clear: while Washington grows colder, other world powers are extending their hands, reshaping the global map of opportunity for Africa’s most industrialised economy.

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