South Africa records first trade deficit in 16 months as imports rises

South Africa slipped into its first monthly trade deficit in 16 months in May as rising imports outpaced exports, driven by higher purchases of crude oil, vehicle components and passenger vehicles, official data showed. The figures point to growing pressure on the country’s trade balance despite stronger performance so far this year.

Read also: Thousands march across South Africa in anti-migrant protests amid tight security

Preliminary data released by the South African Revenue Service (SARS) showed that South Africa recorded a trade deficit of R1.8 billion in May, the first monthly deficit since January 2025. The result marks a sharp reversal from the revised R14.4 billion trade surplus recorded in April.

Exports fell 5.7 percent from the previous month to R178.8 billion, largely because of lower shipments of precious metals and stones, vehicles and transport equipment, and mineral products. Imports, however, rose 3.1 percent to R180.6 billion, their highest level in more than two and a half years, fuelled by stronger demand for vehicles and transport equipment, original equipment components, mineral products, and chemical products.

“The preliminary trade balance deficit of R1.8 billion in May was attributable to exports of R178.8 billion and imports of R180.6 billion,” SARS said.

Read also: South Africa secures $14bn Afreximbank deal amid xenophobic attacks

The revenue service said exports declined by R10.8 billion between April and May, mainly because of weaker exports of gold, platinum group metals and passenger motor vehicles. At the same time, imports increased by R5.4 billion, supported by higher purchases of crude oil, original equipment components and passenger vehicles

Despite the monthly deficit, South Africa’s trade position remains stronger than it was a year ago. The country posted a year-to-date trade surplus of R85.8 billion for the first five months of 2026, up from R60.1 billion during the same period in 2025. Compared with May last year, exports increased 2.7 percent, while imports climbed 17.3 percent.

Read also: South Africa’s xenophobia tax and the fiscal price tag of hatred

SARS also revised April’s trade surplus lower after ongoing customs data corrections. The previously reported surplus of R15.2 billion was adjusted to R14.4 billion.

The latest figures suggest that while South Africa continues to benefit from a healthy cumulative trade surplus, rising import costs, particularly for energy and manufactured goods, together with softer exports of key commodities, are beginning to weigh on the country’s monthly trade performance.