SACU–India FTA to Boost Trade and Investment Flows, Says South Africa Envoy
New Delhi: South Africa’s High Commissioner to India Anil Sooklal on Wednesday said the proposed Free Trade Agreement between India and the Southern African Customs Union (SACU) would significantly enhance trade and investment flows between the two regions.
In an exclusive interaction, Sooklal noted that the agreement would mark the first FTA between India and a regional bloc in Africa. The SACU comprises Botswana, Eswatini, Lesotho, Namibia and South Africa, with Pretoria participating as part of the customs union in trade negotiations. He added that both sides have agreed to expedite discussions.
Highlighting existing economic ties, the envoy said South Africa remains India’s largest trading partner in Africa, while India ranks as South Africa’s fourth-largest trading partner globally. Bilateral trade stands at approximately $20 billion, accounting for nearly 20 per cent of India’s total trade with the African continent.
Sooklal also referred to the recent CII India–Africa Conclave, where South Africa was the guest country. South Africa’s Trade Minister Parks Tau held discussions with India’s Commerce and Industry Minister Piyush Goyal to explore new avenues of cooperation.
On broader geopolitical issues, the High Commissioner praised India’s role as a leading voice of the Global South. He credited Prime Minister Narendra Modi for championing the African Union’s inclusion as a permanent member of the G20 during India’s presidency in 2023.
He also highlighted the significance of the IBSA partnership. On the sidelines of the recent G20 Summit in Johannesburg, leaders including Brazil’s Luiz Inacio Lula da Silva and South Africa’s Cyril Ramaphosa met with Prime Minister Modi to discuss cooperation in governance reforms, development challenges and emerging areas such as Artificial Intelligence.
Addressing the absence of the United States at the Johannesburg G20 Summit, Sooklal termed it unfortunate but emphasised that the summit successfully adopted a comprehensive declaration with participation from other member states.
On trade tensions, he noted India’s principled stand against the weaponisation of tariffs and unilateral economic measures, stating that such positions have strengthened confidence among developing nations.
Looking ahead, the envoy described the upcoming AI Summit in India as a significant platform for shaping global AI governance, asserting that emerging technologies offer both opportunity and responsibility for the Global South.
Our Thoughts
The proposed SACU–India FTA reflects India’s expanding economic engagement with Africa beyond bilateral frameworks. As global supply chains diversify and South-South cooperation gains prominence, structured regional trade agreements could unlock new investment corridors. Coupled with collaboration in governance reform and emerging technologies like AI, the partnership signals a maturing strategic alignment between India and African economies.