South Africa is putting regional trade, value chains and critical-mineral beneficiation at the center of its 2026–27 SADC chairship.
South Africa is placing deeper regional trade and industrialization at the center of its 2026–27 chairship of the Southern African Development Community (SADC), with a target to lift intra-regional trade to 50%.
The agenda links higher trade within Southern Africa to regional value chains, greater processing of critical minerals and investment in the infrastructure needed to support manufacturing and cross-border commerce.
Trade Target Puts Regional Integration in Focus
South Africa plans to use its year-long SADC chairship to accelerate industrialization, increase trade between member states and improve the infrastructure connecting the bloc.
International Relations and Cooperation Minister Ronald Lamola said the government intends to pursue commitments made in May, including raising intra-SADC trade to 50%. Trade between countries within the bloc currently accounts for around 20% of total trade.
The gap highlights the scale of the challenge facing SADC as it seeks to turn regional economic integration into greater commercial activity between its member states.
Regional Value Chains Take Priority
South Africa’s economic priorities also include agricultural transformation, critical-minerals beneficiation and the development of regional value chains.
Lamola argued that Southern Africa should capture more economic value from its natural resources rather than continuing to export them largely in raw form.
“Reversing this pattern requires us to beneficiate our resources, build regional value chains and trade more with one another,” he said.
The approach seeks to connect the region’s mineral resources with processing and manufacturing capacity, creating stronger links between resource-producing economies and regional industry.
Critical Minerals Offer Industrial Opportunity
According to Lamola, the SADC region holds close to 30% of the world’s proven critical-mineral reserves, including around half of global cobalt reserves and one-fifth of graphite reserves. The greater beneficiation of those resources forms part of South Africa’s broader push for economic integration. The aim is to move beyond extractive economic models by processing more resources within the region and expanding trade in higher-value products.
Infrastructure Underpins Trade Ambitions
Infrastructure is another central part of the program. South Africa wants to strengthen regional energy systems, transport corridors, ports, digital networks and water infrastructure to support industrial activity.
Highlighting the need for support, Lamola warned that manufacturing currently accounts for only around 10% of regional GDP. “Without these foundations, regional manufacturing cannot expand. At only 10% of GDP, it cannot generate employment on the scale our region requires,” he said.
SADC Executive Secretary Elias Magosi also emphasized the importance of greater connectivity across the bloc. “Movement of persons is therefore central to our vision of a more integrated, connected and prosperous SADC,” he said.
For SADC, reaching the 50% intra-regional trade target will therefore depend on more than trade policy alone. The strategy ties increased commerce to industrial capacity, mineral processing, infrastructure and deeper regional integration across Southern Africa.
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