Business organisation Business Unity South Africa (Busa) says it is gravely concerned about the situation in Ukraine.

“First and foremost, we empathise and stand in solidarity with the people of Ukraine mid the hardship imposed on them by this unnecessary war. Significant numbers of people find themselves leaving their belongings behind and seeking refuge in neighbouring countries, with their lives severely disrupted overnight.

“We are also concerned about people from other countries living in Ukraine and trying to seek asylum in Poland, Hungary and other countries, [and] particularly [about reports] that people of colour [are] being refused entry to such countries. We call on all countries providing asylum to do so in a manner that does not discriminate on the basis of race,” the organisation emphasises.

It points out that, currently, the direct impact on South Africa’s economy is minimal.

“Our trade with Russia is negligible, making up less than 0.4% of total merchandise exports in 2021. South Africa imported goods worth R9.2-billion from Russia in 2021, less than 1% (0.7%) of total imports.

“Our trade linkages with Ukraine are also negligible. This is according to research by the Bureau for Economic Research, which also identifies risk for South Africa if the conflict continues, particularly with gas and fuel prices, and increased cost on freight movement and logistics costs, all of which will have knock-on inflationary and interest rate impacts,” Busa informs.

It says there is also a severe risk to agricultural exports.

In 2020, South Africa exported over $245-million (about R3.7-billion) worth of agricultural products, with citrus and apples and pears making up nearly 90% of those exports.

In total, the country exports more than 7% of its total citrus crop to Russia, and more than 12% of its apple and pear exports.

Busa says it is deeply concerned that, without a speedy resolution, the impact of this situation may be considerable, with uncontrollable outcomes.

“At a minimum, it is causing global uncertainty just as the world is starting to recover from the impact of the Covid-19 pandemic. Indeed, the potential impact of the invasion will be felt more severely by emerging markets, like South Africa, and could further erode confidence in such markets and make even more difficult our efforts to rebuild our economy after Covid.

“The world cannot afford conflagrations and invasions of this sort. It is critical that, as countries, we engage on trade and other issues globally in an environment of peace and positivity, which are prerequisites for building an inclusive and stable global economy,” Busa states.