India signals southernAfrica trade push

INDIA and the Southern African Customs Union (Sacu) are set to resume preferential trade agreement negotiations this year to bolster bilateral trade and economic cooperation.

This follows the announcement of an India-European Union (EU) free trade agreement at the end of January.
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Trade between India and Africa has grown steadily over the past two decades, yet it remains well below its full potential. The proposed India-Sacu preferential trade agreement is an important step toward unlocking that potential through a partnership rooted in mutual benefit and South-South cooperation,” Indian high commissioner Rahul Shrivastava says in a statement released yesterday.

Shrivastava says Sacu members and India held several meetings over the course of 2025 in preparation of formal trade negotiations.

He says a preferential trade agreement could improve the competitiveness of Namibian exports in the Indian market and simultaneously improve access to Indian products.

“For Namibia, the potential benefits are significant. India is a major and growing market for minerals, energy resources and agricultural products – sectors where Namibia has strong export capacity,” he says.

Shrivastava lists Indian pharmaceuticals, textiles, and information technology as potential products Namibia could gain easier access to through a trade agreement.

“Studies indicate that once the preferential trade agreement is concluded, bilateral trade between India and Sacu could increase by 40% to 60%.

Such growth would represent a substantial expansion of commercial ties and open new opportunities for businesses on both sides,” he says.

His remarks come as India and the EU announced their free trade agreement, which covers a range of trade, including labour-intensive products, agriculture, and services. Products such as textiles, footwear, and jewellery will no longer face any tariffs when exported to the EU.

Agricultural products such as tea, coffee and spices will become more competitive in the EU, Shrivastava says.

Indian and EU service providers will also gain access to each other’s economies.

“The benefits of the preferential trade agreement go well beyond trade figures. It is designed to create jobs and new opportunities for micro, small and medium enterprises, as well as for women, artisans, youth and professionals.

“By strengthening India’s integration into global value chains, the agreement supports inclusive growth and broad-based economic participation,” Shrivastava says.

The trade agreement opens the path to deals with other partners, he says.

“This landmark agreement demonstrates India’s ability to negotiate balanced, modern, and development-oriented trade partnerships. Importantly, it shows India’s readiness to engage constructively with partners across the world, including in Africa.”

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