BusinessPREMIUM

South African businesses see record rise in trade support, says Standard Bank

Government initiatives boost cross-border trade confidence among businesses

Standard Bank said on Thursday its annual profit jumped by 27% as high interest rates helped offset rising bad loans. File photo.
South African businesses are increasingly confident the government is improving support for cross-border trade, according to the latest Africa Trade Barometer released by Standard Bank. File photo. (REUTERS/Esa Alexander)

South African businesses are increasingly confident the government is improving support for cross-border trade, according to the latest Africa Trade Barometer released by Standard Bank, which shows a sharp rise in perceptions of state backing for exporters and importers.

South Africa recorded the survey’s single largest improvement in government trade support scores, jumping from 55 to 71. It is the largest improvement among the 10 African markets surveyed. The index ranges from 0 to 100, with scores above 50 indicating businesses generally view government policy and institutions as supportive of trade.

“South Africa recorded the largest improvement in perceived government support in this iteration of the survey compared to August 2024,” the report said.

The most structurally significant move came in November when parliament passed the One-Stop Border Post Bill. The legislation establishes common control zones at South Africa’s borders with Zimbabwe and Mozambique, allowing both countries to process the same cargo simultaneously rather than sequentially. The target is to halve transit times and costs.

At the ports, Transnet four new ship-to-shore cranes were commissioned at Durban’s pier 2 in October. Nine rubber-tyred gantry cranes followed at Cape Town in September. The Ports Regulator’s 2025–2030 strategic plan sets a target of 30 crane moves per hour at Durban, Cape Town, Port Elizabeth and Ngqura, roughly double current productivity at some terminals.

An October high court ruling cleared the way for Transnet’s 25-year concession agreement with ICTSI at Durban container terminal pier 2, ending months of legal uncertainty over the country’s most important private port partnership.

Angola, Ghana, Kenya, Namibia, Nigeria, South Africa and Tanzania registered an increase in perceived government support for cross-border trade in this iteration compared to the August 2024 survey, while Mozambique, Uganda and Zambia recorded declines

—  Africa Trade Barometer

“Furthermore, the targeted interventions of Operation Vulindlela phase 2 2025 saw a co-ordinated recovery of the North-South and Coal rail corridors, which improved the reliability of moving high-value goods to port,” the report reads.

The department of home affairs rolled out AI-powered electronic travel authorisation in September, replacing paper visas with near-instant approvals.

In response to Washington’s 30% tariff on South African exports, Pretoria launched an export support desk to redirect trade toward Asia, the Middle East and intra-African channels under AfCFTA, and signed a clean trade and investment partnership with the EU focused on green hydrogen and critical minerals.

“This was part of a broader economic response package aimed at stabilising the export economy and preventing mass job losses in the wake of these trade shocks. The support desk helped companies find alternative destinations for their goods, such as markets in Asia, the Middle East and the rest of Africa (via AfCFTA) while providing expert guidance on the regulatory and compliance requirements of these new markets,” the report said.

Across the continent, perceptions of government support for trade have also improved, though at a more modest pace. The average index score across the 10 surveyed African markets rose to 55 from 51, with seven countries reporting stronger sentiment among businesses.

“Angola, Ghana, Kenya, Namibia, Nigeria, South Africa and Tanzania registered an increase in perceived government support for cross-border trade in this iteration compared to the August 2024 survey, while Mozambique, Uganda and Zambia recorded declines.”

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