GAUTENG'S EXPORTERS make poor use of trade finance support mechanisms such as export credit insurance, forfaiting, factoring and foreign currency insurance which is
a key weakness in promoting exports, says
the Johannesburg Metropolitan Chamber of Commerce and Industry (JMCCI).
This factor is highlighted in the 'Export Barometer', the Chamber's half-yearly survey, the latest of which covers the first six months of 2000.
An unbelievable 84% of companies report they are not using any of these mechanisms, says chief executive officer Marius de Jager. It appears that exports are primarily being supplied against letters of credit, being paid for on a cash-in-advance basis, or are being supplied on open account.
The implications are that businesses are not exploiting more innovative ways of setting up deals and are limiting the number of potential customers with whom they could be
dealing.
The punishing payment conditions being demanded by local exporters are stifling the region's export potential, he says. This is borne out by the fact that 49% of the exporters reported no increase in their exports for the period under review.
The latest survey of 1000 members does reveal, however, that many of the exporters are making encouraging inroads into international markets.
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