South Africa's position in the global trade landscape has become increasingly delicate due to shifting dynamics and uncertainty in global trade policy. Like many economies, the country needs to diversify its exports and deepen trade in new growth frontiers to ensure resilience. This comes as the 18th BRICS summit in India highlighted that developing economies, including South Africa, have mainly participated in global value chains as suppliers of raw commodities and consumers of goods made elsewhere.
Since joining BRICS in December 2010 and participating in its first summit in 2011, South Africa's merchandise trade with other BRICS+ economies has grown substantially, from R567.1 billion in 2010 to R1 trillion in 2025 in real terms. However, almost 58% of the country's exports to these markets still consist of iron ore, chromium ore, coal, manganese, and diamonds. This indicates that export diversification has not been accompanied by an equivalent upgrading of South Africa's export basket.
The trade expansion has not led to a significant increase in manufactured products, which account for 51.4% of South Africa's overall exports but only 25.2% of its exports to BRICS+ economies. Mining products, by contrast, represent 66.1% of exports to the bloc. This reflects a broader domestic challenge, as policymakers have sought to diversify exports towards higher-value products with limited success.
The BRICS+ economies, which now include new members and partner countries, accounted for 28.9% of South Africa's total trade in 2025. However, South Africa records a substantial trade deficit with the group and most of its member countries, which grew from R257.2 billion in 2015 to R326.7 billion in 2025 in real terms. The deficit is a concern, but imports of machinery, equipment, and intermediate inputs can support investment and productive capacity.
Research by the Industrial Development Corporation (IDC) identified products that South Africa exports successfully to the world but supplies only in limited quantities or not at all to particular BRICS+ markets. These include automotive products, chemicals, agro-processing, fresh produce, mining equipment, industrial machinery, construction materials, processed metals, and steel products. However, market demand, tariffs, technical standards, logistics, and firm-level competitiveness must still be assessed.
China warrants particular attention, accounting for more than half of South Africa's trade with BRICS+, followed by India, the UAE, and Saudi Arabia. China's zero-tariff preference scheme for qualifying South African exports came into effect on May 1, which could provide an important test of whether improved market access can unlock identified opportunities in agricultural, chemical, machinery, and processed-metal sectors.
To convert tariff preferences into actual exports, South Africa needs to address standards, certification, logistics, market intelligence, and firm-level production constraints. A targeted focus on trade facilitation, trade diplomacy, development finance, and BRICS co-operation could assist in unlocking identified opportunities and supporting industrial upgrading, skills development, and the diffusion of new technologies.
Key points
- South Africa's export diversification remains a challenge despite growing trade with BRICS+ economies.
- The country's trade deficit with BRICS+ economies grew from R257.2 billion in 2015 to R326.7 billion in 2025.
- Improved market access and investment in productive capacity are crucial to support export expansion and industrialisation.
