South Africa is a country of 44 million people that is rich in diverse cultures, people and natural heritage.
Enjoying remarkable macroeconomic stability and a pro-business environment, South Africa is a logical and attractive choice for U.S. companies to enter the African continent. It is the most advanced, broad-based and productive economy in Africa, with a 2006 gross domestic product (GDP) of $587.5 billion and a real growth rate of approximately 5 percent.
Some quick facts regarding South Africa's economy and its foreign trade:
- The United States is the third largest source of South African imports (9.4%), after Germany (17.1%) and China (10.2%), and it is followed by Japan (8.5%), Saudi Arabia (6.6%), United Kingdom (6.6%) and France (5.2%).
- U.S. exports rose 14% in 2006. In the first ten months of 2007, U.S. exports climbed another 25% compared to the same period in 2006.
- The United States is the largest portfolio investor in South Africa and the second largest source of foreign direct investment (FDI) in South Africa, after the U.K. (Total U.S. FDI is $5 billion with total FDI in South Africa at the end of 2005 amounting to $76.9 billion.
- The mature nature of the South African economy is reflected in the mix of economic sectors: agriculture (incl. fishing and mining) - 9%; manufacturing industry - 24%; and the services sector - 66%.
- The national retail consumption patterns reflect the disparate nature of the economic status of its citizens, ranging from basic needs (e.g. condensed milk) to high-end durable consumer goods (e.g. SUV's).
Over the past five years, South Africa has further integrated into the global trading system by negotiating free trade agreements with the European Union, with its neighbors in the Southern African Development Community (SADC), the European Free Trade Association and Mercosur. With the passage of the African Growth and Opportunity Act (AGOA) – providing duty-free access to the U.S. market for all African countries - there has been an increase in bilateral trade between the United States and South Africa. The United States is currently negotiating a Trade, Investment and Development Cooperation Agreement (TIDCA) with SACU.
Learn what you need to know to get your product to South Africa by reviewing the information below!