SA EXPORTERS expect increased export sales in US dollar terms over the coming 12 months and especially during the first quarter of 1997.
That's the finding of an export confidence survey conducted by Safto during the final quarter of last year.
While this optimism was evident among companies of all sizes, it was most marked among the small companies, 79% of whom expected an increase, compared with 72% in the case of both the medium-sized and large companies who responded, Safto g.m. Ann Moore told FTW.
Only one large company expects a downturn in export sales over the coming year. However a number of small and medium-sized companies did not know what to expect. This probably reflects the lack of resources among smaller companies to predict trends and may well be one of their management problems, she said.
Factors inhibiting export growth, according to the survey, include in order of ranking, uncompetitive prices and the cost and availability of transport; lack of demand, which has risen from fourth to third place; and uncompetitive product quality.
Lack of financial resources has become an important factor and may reflect both local high interest rates and the increased rand cost of foreign-marketing activities due to the depreciation of the rand, according to Safto.
A new comment related to budgetary constraints on government departments. This, exporters feel, could lead to a cut in personnel required to ensure that international health and hygiene standards are maintained for exports. It is especially important for food products, for example, exported to the European Union.
