Impact on SA trade with Russia minimal: BUSA
Business Unity South Africa (Busa) says the war between Russia and Ukraine has so far had a minimal direct economic impact on South Africa as trade with Russia is negligible.
In a statement released on Tuesday, Busa said it is “gravely concerned” about the situation and stands in solidarity with the people of Ukraine.
"According to the Bureau for Economic Research, for now, the direct economic impact on SA is minimal. Our trade with Russia is negligible, making up less than 0.4% of total merchandise exports in 2021.
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"South Africa imported goods worth R9.2 billion from Russia in 2021, less than 1% (0.7%) of total imports. Our trade linkages with Ukraine are also negligible.
"This is which also identifies risk for SA if the conflict continues, particularly with gas and fuel prices, and increased cost on freight movement and logistics costs, all of which will have knock on inflationary and interest rate impacts."
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Busa says there is also a severe risk on agricultural exports.
"In 2020, we exported over (R3,7 billion) worth of agricultural products, with citrus and apples & pears making up nearly 90% of those exports. In total, SA exports more than 7% of its total citrus crop to Russia, and more than 12% of its apples and pears exports."
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