Rooibos tea opportunity in China can help boost African exports

China is already SA’s biggest trading partner and has a large population known for drinking tea, but its Rooibos imports have lagged countries such as Japan, which has an import tariff of 17%, and France, Germany and the Netherlands.  

The latter European countries apply a zero tariff as part of a preference scheme for developing markets. 

“Given the size of China’s consumer market, China’s decision to reduce tariffs for South African Rooibos tea by almost 80 percent could make China a priority export market in future,” reports The Diplomat, an international current-affairs magazine covering the Asia-Pacific region. 

“This could not only help reduce the trade deficit between South Africa and China, but also, if branded Rooibos products come into China, it could provide South Africa the opportunity to boost job creation and its value-added exports to China.  

“South Africa’s Rooibos industry produces approximately 20,000 tons annually and employs 5,000 people.” 

Recognition of Geographical Indications (GI) rights 

However, to maximise SA’s export opportunity, China needs to recognise SA’s Geographical Indications (GI) rights relating to Rooibos.  

GI protection is granted by the World Intellectual Property Organization if the “the qualities, characteristics or reputation of the product [are] essentially due to the place of origin”. Other international product examples include Port wine (which must originate from Porto in Portugal) and Champagne (which must originate from a designated region in France). 

“Rooibos and other African products such as South African wine and Benin’s ‘sugarloaf’ pineapples fall under the category of eligible Geographical Indications,” explains The Diplomat. 

“On supermarket shelves, GI recognitions means these products must be original – others can’t manufacture versions of them, and the businesses that sell those products can ultimately get higher prices, meaning higher incomes in African countries.” 

As yet, China has no clear process to recognise, and regulate the use of, Africa’s GIs. But there may be an opportunity to advance this process when the ninth Forum on China-Africa Cooperation (Focac) is held later this year. 

“With the welcome push toward opening up China’s market to African products in recent years, African leaders need to ensure that a clear strategy to implement a process to recognise Africa’s GIs makes it to the agenda,” The Diplomat reports.