With South Africa being at a critical juncture in its trade journey, a new White Paper released by global fintech platform Verto, reveals that, while local businesses face mounting pressures from global tariff disputes, currency volatility and infrastructure challenges, there are also unprecedented opportunities for growth in regional and global markets.

The paper, titled ‘The State of Import and Export in South Africa: Opportunities and Challenges’, paints a picture of South Africa’s trade position.

It highlights the country’s strategic role as a gateway between Africa, Europe and Asia, while warning that reliance on a handful of trading partners and persistent logistical constraints could undermine progress.

South Africa’s exports were valued at more than $110-billion in 2024, accounting for nearly 20% of Africa’s total export revenue.

Yet, despite this strong showing, the White Paper stresses that trade performance is increasingly shaped by factors outside the country’s control, from global “tariff wars” to climate pressures on agriculture.

Key challenges outlined include currency volatility – sharp movements in the rand erode profit margins and complicate cross-border pricing; and infrastructure bottlenecks – congested ports, unreliable rail, high road transport costs, and loadshedding disrupt trade flows.

Other challenges include complex regulation – stringent exchange controls, compliance requirements and cross-border approvals create delays and extra costs; and erratic weather and droughts that are already reducing crop yields and raising sustainability pressures from global buyers.

However, the paper also highlights opportunities that could reshape South Africa’s trade future.

This includes regional expansion through tapping into the African Continental Free Trade Area to access a 1.3-billion-strong market; market diversification through moving beyond reliance on the US, China and Europe, and building stronger ties with Southeast Asia and Latin America; and agricultural growth through exporting high-demand products such as citrus, wine and macadamias into new regions.

Opportunities also include investing in renewable energy, advanced manufacturing, and environmental, social and governance-aligned exports to stay competitive; and fintech solutions that use digital platforms to overcome cross-border payment barriers, reduce costs, and streamline compliance.

“South Africa is uniquely positioned to drive the next wave of global trade coming out of Africa. Yes, the risks are real, from tariff wars to energy insecurity, but our businesses have the resilience and the ingenuity to overcome them.

“What’s needed now is bold thinking, smarter use of technology, and greater collaboration across industries to unlock trade’s full potential,” says Verto revenue head James Booth.

The paper concludes that South African businesses able to diversify their markets, embrace innovation, and adopt digital trade solutions will be the ones to thrive.

It calls for business leaders and innovators to work together to cut through logistical and regulatory bottlenecks, ensuring South Africa strengthens its role as both a continental and global trading powerhouse.