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African trade is growing despite the obstacles

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Businesses are expanding across borders. New trade corridors are emerging. Regional ambition also remains strong. However, liquidity, payment and execution challenges continue to shape the reality of doing business across Africa. Six months into 2026, African trade is growing, but it appears to be telling two stories at once.

SME relief – VAT threshold increases to R2.3 million

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South Africa’s 2026 National Budget has delivered targeted SME relief for small and medium-sized enterprises (SMEs). This includes a significant increase in the Value Added Tax (VAT) registration threshold. It also introduces enhanced capital gains tax exemptions for qualifying business owners.

What’s next for local SMEs in 2026?

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South African Small and Medium Enterprises (SMEs) are entering 2026 under intense pressure. Rising operating costs continue to squeeze margins. At the same time, regulatory complexity weighs heavily on business confidence. Weak economic conditions further erode consumer spending power.

AGOA trade uncertainty – rethinking supply chain strategy

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The possible extension of the African Growth and Opportunity Act (AGOA) comes at a moment of extraordinary geopolitical strain. Traditional allies are openly divided. Global trade is increasingly weaponised. Countries now face growing pressure to choose sides. At the same time, the United States has adopted a more protectionist posture. Its strategic rivalry with China, Russia, South America and Iran continues to intensify.

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