Namibia is evaluating the potential removal of its longstanding ban on vegetable imports from South Africa, a decision that could impact agricultural trade dynamics across the border. This development arises amidst complex trade relations within the Southern African Customs Union (SACU), which includes Botswana, Namibia, Lesotho, and Eswatini.
Wandile Sihlobo, chief economist at Agbiz, highlighted that trade friction within SACU has been a point of concern. "In the recent past, some trade friction in South Africa's trade relations with the African continent has mainly been within the SACU region, a customs union that is a free-trade zone. From around 2021, Botswana and Namibia imposed bans on South African vegetable imports to support their domestic industries. These bans added uncertainty and weighed on business," stated Sihlobo.
While Botswana reversed its restrictions on vegetable imports in December 2024, Namibia maintains its stance, citing the need to protect local farmers and ensure food security. This policy has been criticized for its effect on trade stability. Bennie van Zyl, general manager of TLU SA, expressed concerns over market instability. "While Namibia reviews the ban on a monthly basis, it is not easy for farmers. When a farmer produces any commodity, having a stable market is crucial for profitability," he noted.
Sihlobo emphasized SACU's importance for South African agricultural exports, accounting for about 20% of the country's US$13.2 billion agricultural exports in 2023. "The only difference between the EU and SACU is the products in the export basket," Sihlobo remarked.
Source: Farmer's Weekly