India-SACU pact could be template for broader India-Africa trade agreement: South Africa envoy

New Delhi: A proposed preferential trade agreement (PTA) between India and the Southern African Customs Union (SACU) could become a template for a more ambitious trade agreement between the world’s fastest-growing major economy and Africa, South Africa's high commissioner to India Anil Sooklal said in an interview with Mint. SACU is a five-member bloc comprising South Africa, Botswana, Lesotho, Namibia and Eswatini.

"Getting the SACU agreement inked, hopefully within a year, can be a template for a more ambitious India-Africa trade agreement," he said.

This is the first time India is negotiating a trade pact with a regional bloc in Africa. Experts agreed that a successful conclusion of the pact could provide the foundation for a broader India-Africa economic framework.

India and SACU signed the terms of reference for negotiations on 12 August, according to an Indian government statement.

The PTA is expected to cover several subjects, including market access for goods, rules of origin, customs procedures, trade facilitation, sanitary and technical standards, trade remedies, and dispute settlement.

India can play an important role in supplying affordable medicines and supporting the development of new talent in the information technology (IT) sector in the SACU region, Piyush Goyal, minister of commerce and industry said on the signing of the terms of reference for negotiations, according to the Indian government statement.

South African President Cyril Ramaphosa has invited Prime Minister Narendra Modi to visit the country next year, Sooklal said, signalling deepening strategic and business ties between the two countries.

"Our president invited the prime minister to visit South Africa next year as part of the 70th anniversary celebration, to which the prime minister has agreed. He (Modi) has agreed to take a large business delegation with him," Sooklal said. A visit by the prime minister would give a fresh impetus to the trade negotiations with SACU.

Commerce between India and South Africa weakened in FY26, when bilateral trade fell 13.55% to $15.56 billion from $18 billion in 2024-25, according to commerce ministry data.

India's trade with SACU dropped to $16.80 billion in FY26, down 12.2% from $19.14 billion in FY25. However, South Africa remains by far India's dominant trade partner within SACU, accounting for $15.56 billion or 92.63% of $16.8 billion of the bloc's trade with India in FY26.

Economic and strategic ties

Ramaphosa’s invitation to Modi highlights increased efforts to deepen bilateral ties at a time when New Delhi is positioning itself as a leading voice of the Global South.

South Africa is a key member of BRICS, with India holding the grouping’s presidency in 2026 and hosting the 18th BRICS Summit in New Delhi in September.

For Pretoria, closer ties with New Delhi offer a route to diversify economic partnerships beyond Western markets and China, attract investment, and bolster industrial and technology cooperation.

For India, South Africa and SACU offer access to critical minerals, including platinum, manganese and copper, at a time when major economies are competing to secure supply chains for these minerals, which are critical inputs in clean energy, electronics and defence manufacturing.

Sooklal said South Africa had sent its largest-ever trade delegation to India during the recent presidential visit, with about 120 businesspersons participating. He said the delegation attended not only BRICS-related events but also four dedicated India-South Africa bilateral trade meetings.

Queries emailed to SACU, India's external affairs and commerce ministries, and the Prime Minister's Office on Monday remained unanswered at the time of publishing.

"India is interested in energy production and distribution opportunities currently available in South Africa. Stronger economic ties with South Africa will boost Indian engagement in southern Africa, especially with SACU nations, many of which possess critical mineral and energy resources," said Ajay Dubey, former chairperson of the Centre of African Studies at Jawaharlal Nehru University.

India has just kicked off its mission for sourcing critical minerals, and Africa is an important region for this outside China, he added. Africa is also a continent of the future, "with a huge young demographic asset which is now getting educated and skilled, governments becoming more accountable if not democratic, providing huge opportunity for industrialisation and development where Indian business and tech firms can play a significant role in people-centric development and capacity building", Dubey added.