India-SACU pact could be model for wider India-Africa trade deal: South Africa envoy | Today’s news
New Delhi: The proposed Preferential Trade Agreement (PTA) between India and the South African Customs Union (SACU) could become a model for a more ambitious trade deal between the world’s fastest growing major economy and Africa, South Africa’s High Commissioner to India Anil Sooklal said in an interview to Mint. SACU is a five-member bloc comprising South Africa, Botswana, Lesotho, Namibia and Eswatini.
“The signing of the SACU agreement, hopefully within a year, can be a model for a more ambitious trade agreement between India and Africa,” he said.
This is the first time India is negotiating a trade pact with a regional bloc Africa. Experts agreed that a successful pact could provide the basis for a broader Indo-African economic framework.
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India and SACU signed the terms of reference on August 12, according to a statement from the Indian government.
The PTA is expected to cover several topics, including market access for goods, rules of origin, customs procedures, trade facilitation, hygiene and technical standards, trade remedies and dispute resolution.
India can play an important role in supplying affordable medicines and supporting the development of new talent in the information technology (IT) sector in the SACU region, Piyush Goyal, Minister of Commerce and Industry, said at the signing of the terms of reference, according to an Indian government statement.
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South African President Cyril Ramaphosa has invited Prime Minister Narendra Modi to visit the country next year, Sooklal said, signaling deepening strategic and trade ties between the two countries.
“Our president has invited the prime minister to visit South Africa next year as part of the 70th anniversary celebrations, which the prime minister has agreed to. He (Modi) has agreed to take a large business delegation with him,” Sooklal said. The prime minister’s visit would give new impetus to trade talks with SACU.
India-South Africa trade weakened in FY26 as bilateral trade fell 13.55% to $15.56 billion from $18 billion in 2024-25, according to Commerce Department data.
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India’s SACU trade declined to $16.80 billion in FY26, down 12.2% from $19.14 billion in FY25. However, South Africa remains by far India’s dominant trading partner within SACU, accounting for $15.56 billion or 92.63% of the bloc’s $16.8 billion trade with India in FY26.
Economic and strategic ties
Ramaphosa’s invitation to Modi underscores increased efforts to deepen bilateral ties at a time when New Delhi is positioning itself as a leading voice of the global South.
South Africa is a key member of BRICS, with India holding the presidency of the grouping in 2026 and hosting the 18th BRICS summit in New Delhi in September.
For Pretoria, closer ties with Delhi offer a way to diversify economic partnerships beyond Western markets and China, attract investment and strengthen industrial and technological cooperation.
For India, South Africa and SACU offer access to critical minerals, including platinum, manganese and copper, at a time when major economies are competing to secure supply chains for these minerals, which are critical inputs for clean energy, electronics and defense production.
Sooklal said South Africa sent its largest business delegation to India during the recent presidential visit, with about 120 businessmen participating. He said the delegation attended not only BRICS-related events but also four specialized bilateral trade meetings between India and South Africa.
Emailed queries to SACU, India’s ministries of foreign affairs and commerce and the prime minister’s office on Monday remained unanswered at the time of publication.
“India is interested in the energy production and distribution opportunities currently available in South Africa. Stronger economic ties with South Africa will strengthen India’s engagement in southern Africa, particularly with the SACU countries, many of which hold critical mineral and energy resources,” said Ajay Dubey, former chairman of the Center for African Studies at Jawaharlal Nehru University.
India has just started its mission to acquire critical minerals and Africa is an important region for that outside of China, he added. Africa is also the continent of the future, “with a huge young demographic now being educated and skilled, governments becoming more accountable, if not democratic, providing a huge opportunity for industrialization and development where Indian business and technology firms can play a significant role in people-centric development and capacity building,” added Dubey.
