Finally, China has lifted its 5-month-long ban on wool products importation from South Africa. The ban, which began in April, was occasioned by the outbreak of foot-and-mouth disease (FMD) in three provinces of the country. 

Speaking on the development, Cape Wool SA announced, “China’s ban on the import of greasy wool from the Republic of South Africa has been lifted with immediate effect. We are equally relieved that it has been lifted without the imposition of any additional conditions,” it said.

Interestingly, this is not the first such occurrence. In 2019, China enforced a similar ban that lasted eight months, heavily impacting South Africa’s wool industry. The wool industry harbours significant benefits for the South African economy, and the recent ban, just like the previous one, had an intense impact. 

South Africa produces about 45 million kilograms of cotton with an estimated R5 billion value per annum. And top export destinations for this commodity are the Czech Republic, Italy, India, Egypt, Bulgaria and China. However, approximately 80 per cent of this annual wool clip, in the form of greasy wool, is exported to China. Hence, the market share of the other countries can not help mitigate the brunt of China’s ban.

The ban has threatened the livelihoods of not less than 40,000 workers, sheep shearers, and wool handlers who recently survived a locust outbreak and an extended drought that affected the industry’s value chain. 

Now, the ban exemption would be a harbinger of positive happenings in the industry after a long halt. The development would allow the weekly wool auction for the season to be thoroughgoing. This, would revive people’s dying jobs, ease household financial pressure for workers dependent on the proceeds of the industry to sustain their families and protect more people from falling into poverty. 

Also, foreign exchange earnings in the industry would once again commence for South Africa. In 2021, wool was the eighth most significant agricultural exportable product, accounting for three per cent or $326 million of South Africa’s export of $12.4 billion. While it is valid that an estimated R734 million ($43 million) was lost to the ban, the chance to make a significant return profit before the year runs out is high.