‘Exporters should explore new markets’

Improved vehicle sales, lower
inflation and higher precious
metal prices all bode well for
the South African economy,
but 2011 is expected to
remain a year of cautious
growth in many sectors,
according to credit insurance
company Coface SA.
Speaking at a press
conference in Johannesburg
last week, Paul Jooste,
Coface senior manager
portfolio business, said
while there were positive
indicators, liquidations,
manufacturing and real
finance costs had shown a
decline year-on-year posing
some major challenges to the
economy.
“In terms of
manufacturing the 2010
World Cup served to boost
the economy in late 2009
and early 2010, but Coface
SA has seen a drop in the
manufacturing figures since
July.”
He said another challenge
was the impact of the strong
rand on exporters with some
companies downsizing and in
some cases even closing their
doors. “It is a major concern
because jobs are then again
decreased.”
Jooste said exporters
finding themselves
struggling due to the rand
would be well advised to
now explore new market
conditions especially in
Africa, which is offering
major opportunities.
“The best is not to try and
compete in over-saturated
markets, but to find markets
with a major demand for
goods such as in Africa. One
has to be responsible though
and do one’s homework
thoroughly before venturing
into a new market.”