Negotiations for a trade arrangement between India and the Southern African Customs Union (SACU), which includes Botswana and Lesotho, have been ongoing since 2003. This initiative is part of India’s broader strategy to deepen economic engagement with Africa. The talks aim to establish a Preferential Trade Agreement (PTA) that will enhance market access for Indian goods, particularly textiles, while allowing SACU members to gain easier entry for their agricultural and mineral products.

After a prolonged period of stalled negotiations, discussions have recently resumed, reflecting a renewed urgency in the post-COVID-19 landscape. The PTA negotiations, which began in 2007, faced delays primarily due to disagreements over sensitive sectors. However, the current momentum suggests a commitment from both sides to overcome these challenges.

India’s High Commissioner to South Africa, Prabhat Kumar, has highlighted the importance of trade diversification in these negotiations, stating, “Trade diversification is an important mantra for India’s economic relationships.” This sentiment underscores India’s strategic approach to expanding its trade partnerships beyond traditional markets.

As of February 2026, bilateral trade between India and SACU stood at approximately $20 billion. This figure is indicative of the potential growth that could be realized through the successful completion of the PTA, with estimates suggesting a possible increase of 40-60% in bilateral trade. Furthermore, India’s total trade with Africa exceeded $100 billion in the fiscal year 2024-25, showcasing the continent’s growing significance in India’s economic landscape.

In addition to trade discussions, India has made substantial investments in South Africa, with around 150 Indian companies operating in the country. This investment presence not only facilitates trade but also strengthens economic ties between India and SACU members like Botswana and Lesotho.

The revival of talks regarding the PTA is seen as a strategic move to bolster economic relations in a rapidly changing global environment. Observers note that the current negotiations could lead to significant benefits for both Botswana and Lesotho, enhancing their trade capabilities and market access.

While the details of the ongoing negotiations remain unconfirmed, the commitment from both Botswana and Lesotho to engage with India reflects a proactive approach to fostering economic growth and collaboration within the region.

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