Foreign trade of South Africa

South African exports and imports between 1992-2011. Top graph illustrates exports (dark blue) and imports (light blue). The bottom graph illustrates South Africa's balance of trade.

Since the end of apartheid foreign trade in South Africa has increased, following the lifting of several sanctions and boycotts which were imposed as a means of ending apartheid.

South Africa is the second largest producer of gold and is the world's largest producer of chrome, manganese, platinum, vanadium and vermiculite, the second largest producer of ilmenite, palladium, rutile and zirconium. It is also the world's third largest coal exporter. Although, mining only accounts for 3% of the GDP, down from around 14% in the 1980s. South Africa also has a large agricultural sector and is a net exporter of farming products.

Principal international trading partners of South Africa—besides other African countries—include Germany, the United States, China, Japan, the United Kingdom and Spain. Chief exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports. Other imports include chemicals, manufactured goods, and petroleum.

History

Main article: Disinvestment from South Africa

During apartheid, South Africa's foreign trade and investment were affected by sanctions and boycotts by other countries ideologically opposed to apartheid. In 1970, the United Nations Security Council, adopted resolution 282 imposing a voluntary arms embargo upon South Africa, and which was extended by subsequent resolutions 418 and 591, declaring the embargo mandatory. In 1978, South Africa was prohibited loans from the Export-Import Bank of the United States which was later followed by a prohibition on IMF loans in 1983. An oil embargo was imposed by OPEC in 1983 which was strengthened by Iran in 1979.

This bubble map shows the global distribution of South African exports in 2006 as a percentage of the top market (Japan - $6,234,170,000).

Imports and exports

South Africa's main export trading partners are the European Union, the United States, Japan. China's share in exports is increasing, and has risen from 1.7% in 1994 to nearly 11% in 2007.

Top five manufactured exports in 2011 Product Value (millions of Rands) Percentage of total Basic iron and steel 55,968 15.51% Motor vehicles 46,671 12.93% Precious and non-ferrous metals 43,751 12.12% Basic chemicals (except nitrogen compounds) 22,111 6.13% Refined petroleum products 12,525 3.47% All other exports 360,938 49.85%

Top five export markets in 2011 Country Value (millions of Rands) Value in US$ (millions of Dollars) United States 49,374 7,350 Germany 34,129 5,080 Japan 23,356 3,477 Zimbabwe 16,741 2,492 China 16,548 2,463

Top five manufactured imports in 2011 Product Value (millions of Rands) Percentage of total Motor vehicle parts 55,864 9.46% Motor vehicles 51,513 8.73% Refined petroleum products 43,657 7.4% Televisions and radios 23,252 3.94% Computers and office equipment 18,927 3.21% All other exports 360,938 67.27%

Top five import source countries in 2011 Country Value (millions of Rands) Value in US$ (millions of Dollars) China 100,186 14,914 Germany 76,165 11,338 United States 53,941 8,030 Japan 34,358 5,115 India 28,486 4,240

Attention: SARS presents completely different figures! http://www.sars.gov.za/home.asp?pid=211

African trade

Almost 90% of South Africa's exports to rest of Africa go to the SADC economies. In 2011, South Africa’s trade with the rest of Africa exceeded R220 billion (approx. USD30bn) which amounted to 17% of SA’s total trade with the world. This amounted to a ZAR40bn trade surplus for South Africa compared to a ZAR68bn deficit with Asia. South African exports to the rest of Africa are predominantly of value-added goods. The country's investment stock in Africa has increased from R14.7 billion in 2001 to R121 billion in 2010, amounting to 21% of its total outward Foreign Direct Investment.

Trade agreements

The following includes a list of existing trade agreements signed by South Africa.

• The African Growth and Opportunity Act (AGOA)
• European Union: Trade Agreement between the European Union (EU) and South Africa
• The Southern African Development Community (SADC) Trade Agreement
• The Generalized System of Preferences
• Zimbabwe: Trade Agreement between Zimbabwe and South Africa
• Trade Agreement between Southern African Customs Union (SACU) and European Free Trade Association (EFTA) states
• Rules of Origin Guides / Trade Agreements
• Approved Exporter (SAEU, SACU EFTA)

Currently UAE is also one of the most important trade partners with African buyers/importers.

Proposed free trade agreements

• US-Southern African Customs Union Free Trade Agreement: (US-SAUC; incl. South Africa, Botswana, Lesotho, Swaziland, and Namibia; on hold since 2006 due to US demands on intellectual property rights, government procurement rights and investment)
• Cape to Cairo free trade area: In June 2011, South Africa and 25 other heads of state in Africa began negotiating the establishment of a free trade area (FTA) which would extend trade concessions beyond the Southern Africa Development Community, opening a trade pathway along the east coast of Africa to Egypt. The FTA would include about half of Africa's countries but would not include the Economic Community of West African States.

See also

• Economy of South Africa
• Economy of the Western Cape

References

https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html