SACU and India Sign Framework to Resume Preferential Trade Agreement Negotiations

Key summary

On August 12, 2026, the Southern African Customs Union (SACU)—comprising South Africa, Botswana, Namibia, Lesotho, and Eswatini—and India signed a framework to resume negotiations for a Preferential Trade Agreement (PTA) that had stalled since 2023. The parties aim to conclude the agreement by August 2027. The proposed PTA covers eight chapters including market access, rules of origin, customs procedures, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal provisions. Current bilateral trade between South Africa and India is approximately $18 billion, with a target to reach $40 billion within the next decade. The agreement seeks to shift the region's economic focus from exporting raw materials to adding value locally, addressing current imbalances where Africa exports commodities like coal, precious metals, and minerals while importing finished goods such as refined petroleum products, automobiles, pharmaceuticals, telecommunications equipment, and industrial machinery from India. While SACU members share a customs revenue system that allocates funds to member states, the agreement notes potential impacts on government revenue and domestic industries facing increased competition, particularly in textiles, garments, and light manufacturing. The framework aims to link trade preferences with measurable development outcomes such as local processing, job creation, and skills development.