SA traders need to look beyond SADC

Thanks to rising global trade tensions, African countries are becoming increasingly important for South African exporters – but they are not taking advantage of opportunities beyond the Southern African Development Community (SADC). This is according to the latest Industrial Development Corporation (IDC) Economic Overview, where spokesperson Zama Luthuli points out that around 26% of South African exports are destined for Africa. “Of  concern is the limited penetration of South African exports in several SSA economies with sizeable and

fast-growing overall import demand," she said. Luthuli said while demand for South African exported goods could decline from China, the United States, Europe and the United Kingdom, the sub-Saharan Africa (SSA) region – expected to post higher growth rates this year – could prove a lucrative new market, particularly for manufactured goods which generally fetch higher prices than raw commodities. “It remains crucial for South African businesses to monitor developments closely, not only to pre-empt potentially negative implications, but also to identify export market development opportunities that may arise in a rapidly changing global trading landscape,” added Luthuli. However, a fast-moving consumer goods shipper told FTW on condition of anonymity that integrity of the supply chain – including the logistics legs –  became a problem the further companies ventured into Africa. “You don’t always know the rules and

regulations of the country you export to, let alone the culture and the language and you then have to rely on, and trust, partners on the ground who don’t necessarily have the same levels of ethics that your company does,” she said. Of  concern is the limited penetration of South African exports in several SSA economies with sizeable import demand. – ZAMA LUTHULI