Source: Fin24, photo credit: The Economist/Intelligence Unit/Perspectives
The ongoing Covid-19 crisis has brought uncertainty to global trade because of disruptions in supply chains and weakening demand.
South Africa’s agricultural sector, which is export-oriented, is one of the sectors I feared would be disrupted by the pandemic. So far, however, there have been minimal disruptions as the global agricultural and food sector has generally stayed operational.
The coming months could be even better as many countries are gradually easing restrictions on economic activity and the movement of people in the wake of lockdowns. In the first quarter of the year, a period before coronavirus lockdowns were implemented across the globe, South Africa’s agricultural trade was vibrant. The country recorded an agricultural trade surplus of US$773 million, according to data from Trade Map. This is up by 16% year-on-year, with exports having increased at a higher rate than imports.