SA's mastery in economic foreign policy own goals

Share current article via Email Share current article via Facebook Share current article via Twitter Share current article via LinkedIn The container terminal in the Port of Durban. The writer says despite Durban Port being ranked the most improved port by the World Bank for 2025, the private arm of the harbour, the Durban Gateway Terminal, is reporting port calls currently averaging 12 days – an atrocious figure considering the UN reported a global average port call (for all types of ships combined) of less than one-and-a- half days for 2025. Picture: While Beijing tactically raises its strategic advantages in its global Weiqi campaign, South Africa fumbles any benefits in kowtowing to Beijing. The introduction of China's zero-tariff policy more than two months ago theoretically heralded a huge economic breakthrough for the country as the departments of trade, industry and competition and international relations and co-operation basked in the glory of a once-in-a-lifetime opportunity to revitalise South Africa's stagnating economy. However, the implementation prospects of such an opportunity are alarmingly grim. People say 'numbers do not lie', and if the more than R4.5bn export increase to China represents anything, perhaps they would be right. However, where numbers falter is in their inability to create a holistic picture. The reality is that our logistics sector is already buckling under the weight of current exports and cannot handle a significant influx of new consignments. Despite Durban Port being ranked the most improved port by the World Bank for 2025, the private arm of the harbour, the Durban Gateway Terminal, is reporting port calls currently averaging 12 days — an atrocious figure considering the UN reported a global average port call (for all types of ships combined) of less than one-and-a-half days for 2025. This has had disastrous effects for the trade of perishable items, as citrus exporters are reporting that their produce quality has deteriorated to the point where it is no longer suitable for export. As Investec's Dylan Govender aptly notes, 'Durban has made meaningful progress, but higher volumes can still test available capacity quickly,' something that would prevent South African exporters from realising the true potential of the new zero-tariff policy. South Africa's other ports do not fare any better — the country's second-largest port, Cape Town, was rated as the worst in the world for 2025, also by the World Bank. With these sobering statistics it puzzles me as to how the South African government thinks our economy will benefit from China's new policy when our biggest exporting method is so woefully unprepared. In 2022 a staggering 80% to 90% of South Africa's international trade was seaborne, which means if such a core pillar of trade facilitation is failing, the foundation is at constant risk of collapse if it is not well maintained — a trajectory that is unfortunately being followed despite minor improvements. As long as South Africa's logistics sector remains lacklustre, China's zero-tariff policy will be a blessing-turned-curse. And sadly, there is more to South Africa's logistical lapses than just delays: our crumbling and inefficient infrastructure affixes exorbitant price tags to goods that originally held significant appeal on the global market. South Africa is currently experiencing an almost total domestic road freight hegemony, which not only negatively affects the costs of shipping but also destroys the roads which are meant to facilitate the passage of goods. In a policy research working paper published by the World Bank, South Africa's comparative advantages across various sectors are nullified because of these high transport costs in transferring the product to the ports for international shipment. The combination of logistical challenges raises a constant dilemma for exporters: will my product get delayed, damaged, outpriced or experience a toxic cocktail of all three? Unfortunately, the catastrophic combination is not the most unlikely. What might be a nightmare for the South African exporter is not an issue for Chinese companies, as they now have the entirety of Mother Africa from which to source the most competitive products. Since the deeply embedded Confucian tenet of frugality guides Chinese individuals and companies in their decision-making and product-selecting, purchasing South African products would be a laughable proposition. If Pretoria is unable to rectify these challenges and unlock a potential economic lifeline, South Africa will forever be remembered as the Weiqi opponent who was too lazy to learn and too clueless to care. Sissison is an international relations student at the University of the Witwatersrand. Business Day