There are abundant trade opportunities between Australia and South Africa, especially in sectors like mining and resources, agriculture, and automotive manufacturing. But make sure you are prepared—when doing business with South African companies or individuals for the first time, it is critical to understand their business culture.
For example, they tend to be wary and their trust is not to be taken for granted, it must be earned. Workplaces are hierarchical in South Africa, and those in the higher positions make the final decisions after consensus with subordinates. To conform to their business etiquette, have someone reputable vouch for you with a formal introduction. This is where the services of an experienced logistics agent like Colless Young, with our comprehensive network of partners, gives you the edge.
The strong bilateral relationship between Australia and South Africa supports significant volumes of two-way trade, amounting to more than AU$4bn per year. South Africa is a top 30 trading country for Australia, and our largest trading partner on the African continent.
Our imports from South Africa were US$1.46bn during 2024, according to the United Nations COMTRADE database on international trade. Key exports from Australia to South Africa include aluminium, coal, wheat, and specialised machinery, while we import goods from them such as vehicles, machinery, and metal products.
South Africa is Australia’s gateway to all of Africa. Its busiest harbour is the Port of Durban, followed by the Port of Cape Town, then Richards Bay Harbour, and the Port of Ngqura (formerly Port Elizabeth). Other ports include East London, Saldanha Bay, and Mossel Bay.
The main cargo airports in South Africa are O.R. Tambo International Airport in Gauteng and Cape Town International Airport in the Western Cape. Other significant cargo hubs include King Shaka International Airport in KwaZulu-Natal and airports in Port Elizabeth, East London, and Upingto.
Australia and South Africa do not have a free trade agreement, but we do have a Double Tax Agreement (DTA) that prevents the same income from being taxed twice. They are a core member of the Southern African Customs Union (SACU)—which enables duty free access between member countries—and the African Continental Free Trade Agreement (AfCFTA).
South Africa presents opportunities for Australian retail business exporters and innovative digital healthcare service and product providers. Australian companies able to offer digital healthcare solutions remotely will be attractive in market, according to a recent health care roundtable with the South African Medical Technology Industry Association (SAMED).
South Africa’s population is young with a median age of 27.6 years. About 45% of the population is under 25, and the country has approximately 18 million female consumers – often the primary purchasing decision maker within a household. They are discerning consumers of skincare, sanitary protection and shampoo and hair products. Australian exporters catering to this market can benefit from their increased purchasing power and the population boom.
South Africa has also seen growth in the eCommerce industry—it is the 37th largest market for eCommerce—generating sales of over AU$6bn annually. This growth offers opportunities for Australian companies looking at using eCommerce platforms there for retail connections to consumers or associated technologies in service delivery, such as ‘last mile’ logistics systems.
There is increasing demand for digital technologies in mining in South Africa, as part of the so-called fourth industrial revolution (4IR). Challenges that were encountered during the pandemic years served to accelerate demand for innovation and automation in mining. This includes a need for technologies that will help companies to increase efficiency, manage risk, improve health and safety and reduce maintenance costs.
If you are not yet dealing with South Africa and would like to find out how to get started, talk to us here at Colless Young. Our comprehensive network covers all the main cities and cargo gateways of South Africa. Let our experienced staff guide you through the appropriate import and export procedures—contact Andrew, Tel: +61 7 3890 0800 email enq@collessyoung.com.au
