Zelensky visit: Why it's important to strengthen agricultural trade relations with Ukraine for the future

The Money Show's Stephen Grootes is joined by Wandile Sihlobo from the Agricultural Business Chamber of SA.

Ukrainian President Volodymyr Zelensky is set to arrive in South Africa this week on a working visit.

While his meeting with President Cyril Ramaphosa will focus on terms for a peace deal with Russia and the role Pretoria could play, agricultural trade relations should form an important part of the conversations likely to take place on the sidelines, says Wandile Sihlobo.

Wheat imports are a particularly important area for us, writes the chief economist of the Agricultural Business Chamber of SA (Agbiz) in an opinion piece for News24.

Talking to Stephen Grootes, Sihlobo notes that both countries are agricultural powerhouses and could benefit from trade in products where each has a shortfall.

"Ukraine sends out to the world over $20 billion's worth of agricultural product including sunflower oil, maize, wheat, canola, soya beans... and as a country equally we export product around just under $14 billion a year."

Wandile Sihlobo, Chief Economist - Agbiz

At the same time, South Africa spends around $7 billion on imports of agricultural products, which includes almost half of the wheat we consume domestically.

"I think it's in that space where Ukraine - quality, consistency and price permitting - can look into boosting trade with SA, even if it's after the war ends."

Wandile Sihlobo, Chief Economist - Agbiz

Ukraine's agricultural imports include citrus, wine and spirits - areas where Sihlobo believes South Africa could step in.

"Perhaps over time we'll be able to look at Ukraine to ascertain if they have the necessary buying power and demand for SA to export there. I know in the near term this is complicated... but if you're thinking about trade and affirming this relationship, we are imagining it for the long term." 

Wandile Sihlobo, Chief Economist - Agbiz