16 What does South Africa export - tradesecrets.co.za

1 16 what does south africa export ?By examining South Africa s current export patterns, the exporter can identify where the country sproducts are already achieving success in international Africa has been engaged in foreign trade since the mid-1600s when a provisioning station forpassing ships was established at the Cape of Good Hope. For the first few centuries thereafter, SouthAfrica exported agricultural products and imported virtually everything that could not be made from localresources. The discovery of diamonds and gold in the 1870s and 1880s and the subsequentdevelopment of the world s largest diamond and gold mining industries changed the shape of the SouthAfrican economy and its international trade patterns.

2 Gold and diamonds became South Africa s majorexports, although agricultural produce still featured. Imports subsequently included mining machineryand related equipment, as well as consumer goods, building materials and all the other items requiredby the country in investment in the South African mining industry was followed by similar investment in andlicensing of engineering companies. As South Africa s manufacturing base expanded and diversified, so,too, did its export products. However, the development of manufactured exports was restrained by therelatively insular attitude of many companies, as well as by partial trade sanctions imposed on thecountry until the Africa is ranked among the top 40 trading nations in the world.

3 Although the country is situated along way from the world s major industrial centres, its foreign trade is heavily orientated towards thedeveloped nations. Imports of capital goods from the developed countries are essential for SouthAfrica s industrial growth, while exports provide a necessary source of income and foreign exchange topay for the imports. The composition of South Africa s imports and exports is shown in the South Africa is still heavily dependent on exports of mining or mining-based products, its exportearnings are very vulnerable to world markets and conditions.

4 Within the minerals sector, however,there has been some diversification of export earnings over the past 10 15 years. Previously, goldaccounted for some 40% of export value but now accounts for only 18%, and exports of non-goldminerals and metals have Africa s exports of many types of manufactured goods have been increasing more rapidly thanoverall exports for the last few years. This shows that, despite common sentiment that South Africancompanies cannot compete internationally, many companies can and do compete , some factors in the South African industrial environment do not favour internationalcompetitiveness, but individual companies can achieve a great deal by improving their management andoperational efficiency.

5 In some sectors, cooperation between small potential exporters can help reducecosts and achieve improved productivity. Companies should approach their export councils or theNational Productivity Institute for assistance in these areas. In general, it should be possible to find atleast one or two export markets for any product that is successfully marketed in South Africa s import figures reflect the country s dependence on foreign supplies of industrial goods industrial imports account for some 80% by value of the total. Thus, when South African industryexpands or new infrastructural projects are implemented, the import bill Productivity Institute (NPI).

6 Location: Pretorius Street, Arcadia, Pretoria, 0083. Box 3971,RESOURCEP retoria, 0001. Tel.: (012) 341 1470. Fax: (012) 44 1866. E-mail: Web site: of South Africa s imports and exports, 1998 (rand million)Product categoriesImportsExportsLive animals; animal products1 102,31 916,8 Vegetable products2 894,05 693,7 Animal or vegetable fats and oils1 417,6274,5 Prepared foodstuffs, beverages, tobacco3 179,15 929,5 Mineral products (imports include crude oil)12 960,119 008,5 Products of the chemical or allied industries15 646,99 284,5 Plastics and articles thereof.

7 Rubber and articles thereof5 868,13 007,9 Raw hides and skins, leather, fur skins and articles thereof820,91 156,0 Wood and articles of wood877,91 403,8 Pulp, paper and paperboard3 230,94 206,8 Textiles and textile articles5 211,03 100,7 Footwear and accessories1 061,0141,2 Articles of stone, plaster, cement or similar materials1 998,1924,7 Precious stones and metals (exports include gold anddiamonds)2 145,133 529,7 Base metals and articles of base metal6 585,522 716,7 Machinery and mechanical appliances51 891,010 125,8 Transport equipment8 828,37 872,1 Precision instruments and apparatus5 683,3828,9 Miscellaneous manufactured articles2 318,52 681,4 Works of art, collectors pieces and antiques58,992,9 Other unclassified goods and balance of paymentsadjustments140,111 598,1 Special classification provisions: Original equipmentcomponents or parts for motor vehicles9 407,323,8 Total126 784,7145 518,0