On 12 August 2025, the Minister of Trade, Industry and Competition, Mr Mpho Parks Tau, published the Draft Block Exemption for the Promotion of Exports, 2025 for public comment under the Competition Act, 89 of 1998 (the "Act").
The proposed regulations aim to mitigate the economic impact of increased tariffs and strengthen the resilience and growth of South African exports by exempting certain collaborative agreements and practices in export markets from sections 4(1)(a), 4(1)(b)(i), 4(1)(b)(ii) and 5(1) of the Act.
The exemption is limited to qualifying conduct related to export markets and comes at a critical time as the recently imposed 30% US tariffs threatens to erode South Africa's export revenues and place tens of thousands of jobs at risk. By enabling certain forms of collaboration between exporters, the exemption aims to avert severe economic harm, safeguard employment and maintain a balanced trade relationship.
Key proposed exemptions include coordination on:
- Achieving economies of scale and efficiencies in export markets;
- Sharing or offsetting landed costs;
- Joint financing and development of export infrastructure;
- Sharing export-related market information;
- Sharing shipment, storage, inspection, freight, insurance and other logistics costs;
- Collective marketing of South African goods;
- Joint negotiation of export protocols and compliance with quality standards.
HDP and SMME participation
Historically disadvantaged persons and small, medium and micro enterprises at all value chain levels must be given an opportunity to opt-in to any agreement or practice (including the negotiation of same) under this exemption.
Exclusions
Market allocation of goods and services sold to end customers, collusive tendering for goods and services intended for sale to end customers, resale price maintenance of goods and services to end customers, and merger transactions are excluded from the exemption.
Safeguards and procedures
Firms must seek prior written confirmation from the Competition Commission (the "Commission") that their agreement/practice falls within the exemption before implementation.
The Commission has 30 business days to decide (extendable by a further 30 days).
Duration
The exemption will run for five years from the date of publication, with possible extension by the Minister.
Written submissions are due within 15 business days of publication to Dr Ivan Galodikwe at IGalodikwe@thedtic.gov.za.
To view the full draft exemption, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
