‘Exporters should explore new markets’

Improved vehicle sales, lower inflation and higher precious metal prices all bode well for the South African economy, but 2011 is expected to remain a year of cautious growth in many sectors, according to credit insurance company Coface SA. Speaking at a press conference in Johannesburg last week, Paul Jooste, Coface senior manager portfolio business, said while there were positive indicators, liquidations, manufacturing and real finance costs had shown a decline year-on-year posing some major challenges to the economy. “In terms of manufacturing the 2010 World Cup served to boost the economy in late 2009 and early 2010, but Coface SA has seen a drop in the manufacturing figures since July.” He said another challenge was the impact of the strong rand on exporters with some companies downsizing and in some cases even closing their doors. “It is a major concern because jobs are then again decreased.” Jooste said exporters finding themselves struggling due to the rand would be well advised to now explore new market conditions especially in Africa, which is offering major opportunities. “The best is not to try and compete in over-saturated markets, but to find markets with a major demand for goods such as in Africa. One has to be responsible though and do one’s homework thoroughly before venturing into a new market.”