NEVA MAKGETLA: Expansion of Ukraine war will undermine SA’s economy
Direct trade with Russia and Ukraine is small, but global prices of petroleum, fertiliser and wheat are rising
Only three weeks on, Russia’s brutal invasion of Ukraine has profoundly affected the global economy, which was already upended by Covid-19. SA has little direct trade with Russia or Ukraine, so the immediate effects arise from disruption of global markets. Unless Russia withdraws soon, however, the war could cause a global slowdown, reversing the recovery from the pandemic.
Trade with Russia and Ukraine accounted for less than 1% of SA’s total imports and 0.5% of exports in 2020. Copper cable comprised a third of imports from Russia, with wheat, petroleum and fertilisers making up most of the remainder. SA accounted for 0.16% of Russian exports, but 3% of its exports of copper cables. SA imports from Ukraine were even smaller, consisting principally of wheat and other agricultural products and contributing less than 0.1% of Ukrainian exports. SA exported mostly horticultural products to the two countries, with mining equipment and minerals (mostly manganese to Russia and chro...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.