India-SA Trade monitor highlights benefits of positive relationships
India remains one of South Africa’s most critical trading partners.
This is a key takeaway from the latest edition of the “India-South Africa Trade Monitor” for the period ending December 2025 which has recently been released.
The report looks at a number of trade opportunities between the two countries. These include:
- Indian Participation in Pre-qualified Bidders for Power Transmission Expansion
The energy sector represents significant opportunities for both local and international suppliers.
South Africa has taken a significant step towards modernising its electricity transmission infrastructure by pre-qualifying seven international consortia for participation in its Independent Transmission Projects (ITP) programme, which envisages investments of approximately R440 billion (USD ~25 billion) over the coming years. The programme aims to address chronic grid constraints, enable large-scale integration of renewable energy, and support long-term energy security and economic growth.
Among the shortlisted entities is Adani Group’s Middle East-based power transmission arm, alongside major global utilities including State Grid International Development (China), China Southern Power Grid International, and Electricité de France (EDF). The participation of these global players reflects sustained international investor interest in South Africa
- Structural Stress in South Africa’s Ferrochrome Industry Owing to Rising Electricity Tariffs
The ferrochrome and smelting sectors in South Africa have been in the news quite a lot recently with Eskom agreeing to look at preferential pricing for operators.
The Trade Monitor notes that over the past decade and a half, electricity tariffs in South Africa have increased sharply, reportedly rising by several hundred percent and far outpacing inflation. Coupled with the persistent problem of unreliable power supply, these cost dynamics have placed ferrochrome smelters under acute pressure. As a result, several smelters have scaled down operations, placed furnaces under care-and-maintenance, or exited the market entirely. This decline is occurring despite South Africa’s favourable resource position-holding some of the world’s largest chrome ore reserves—and global demand for ferrochrome, particularly in stainless-steel production, remains strong.
In respect of India-South Africa ties, the report notes:
“… if South Africa succeeds in stabilising its electricity pricing framework and restoring the viability of its ferrochrome smelters, competition in the global ferrochrome market may intensify, affecting Indian ferroalloy producers but ensuring greater market stability. We also have ongoing commercial interests in mining, metals, and energy solutions in South Africa; hence, reforms that strengthen the host country’s beneficiation ecosystem may open new avenues for technology collaboration, equipment supply, and investment by Indian mining and metallurgical companies. The Post will continue to monitor these shifts closely, as changes in South Africa’s industrial structure could have downstream implications for India’s steel sector, raw material security, and bilateral commercial engagements in mining and metallurgy.”
- ITAC initiates anti-dumping investigation on imports of ceramic tiles from India, Mozambique, Zambia and Zimbabwe
The International Trade Administration Commission (ITAC) of South Africa has initiated an anti-dumping investigation into imports of ceramic and porcelain wall and floor tiles (HS 6907.21 and 6907.22) originating from India, Mozambique, Zambia and Zimbabwe. The action follows a formal application submitted by the major SACU tile producers, Ceramic Industries (Pty) Ltd and Rayal Industrial (Pty) Ltd (Sinotile), who together account for a substantial share of domestic production. Their complaint alleges that imports from the four countries are being dumped into the SACU market at prices below normal value, resulting in unfair competition.
The Trade Monitor notes:
“The initiation of this investigation has direct implications for India, given its strong position as a leading supplier of ceramic tiles to the South African and SACU markets. Any eventual imposition of anti-dumping duties could adversely affect the competitiveness of Indian exporters – many of whom operate from tile manufacturing clusters such as Morbi, Gujarat – and may result in a reduction of their market share owing to higher landed costs.”
- Report on the Success Story of the India–South Africa Investment Network (ISAIN)
The India–South Africa Investment Network (ISAIN) was formally launched in August 2024 at Johannesburg by the Post. Established to deepen South African direct investment into Bharat. ISAIN provides a structured and strategic platform to connect High-Net-Worth Individuals (HNIs), institutional investors, and business leaders. With annual India–South Africa trade standing at around USD$19– 20bn, the initiative is designed to unlock under-tapped investment potential across priority sectors.
The recent G20 Summit hosted in South Africa, highlighted the expanding investments in India’s digital ecosystem, particularly in artificial intelligence, startups, and space technology. Special mention was made of Naspers, through its global investment arm Prosus, which has cumulatively invested over USD$8.6bn in India’s digital economy—spanning food-delivery, fintech, e- commerce, ed-tech, and classifieds – making it one of the largest South Africa-origin investors in Bharat’s technology ecosystem.
You can access the full India-South Africa Trade Monitor here.
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