World

India and SACU’s Trade Pact Seen as Blueprint for Wider India‑Africa Deal

By Ramita Mishra, Banikinkar Pattanayak

A preferential trade agreement between India and the Southern African Customs Union (SACU) could serve as a model for a larger India‑Africa trade framework, South Africa’s high commissioner to India Anil Sooklal said in an interview with Mint. SACU, which includes South Africa, Botswana, Lesotho, Namibia and Eswatini, is negotiating its first trade pact with India. The parties signed terms of reference for negotiations on 12 August. The PTA is expected to cover market access for goods, rules of origin, customs procedures, trade facilitation, sanitary and technical standards, trade remedies and dispute settlement. Piyush Goyal, India’s minister of commerce and industry, noted that India could supply affordable medicines and support IT talent development in the SACU region.

Sooklal said South African President Cyril Ramaphosa has invited Prime Minister Narendra Modi to visit the country next year, a move that could energise the trade talks. Commerce between India and South Africa fell 13.55 % to $15.56 billion in FY26 from $18 billion in FY25, while India’s trade with SACU dropped 12.2 % to $16.80 billion in FY26 from $19.14 billion in FY25. South Africa accounts for 92.63 % of SACU’s trade with India.

India and South Africa are both key BRICS members; India will host the 18th BRICS Summit in September. For Pretoria, closer ties with New Delhi offer a way to diversify beyond Western markets and China, attract investment and enhance industrial and technology cooperation. For India, the partnership provides access to critical minerals such as platinum, manganese and copper, which are vital for clean energy, electronics and defence.

Sooklal highlighted that South Africa sent its largest trade delegation to India during the recent presidential visit, with about 120 businesspersons attending BRICS‑related events and four India‑South Africa trade meetings.

Ajay Dubey, former chairperson of the Centre of African Studies at Jawaharlal Nehru University, said India is keen on energy production and distribution opportunities in South Africa and that stronger ties would boost Indian engagement in southern Africa, especially with SACU nations that possess critical mineral and energy resources. He added that Africa’s young, increasingly educated population and growing accountability of governments present significant opportunities for Indian businesses and tech firms to contribute to people‑centric development and capacity building.