Higher transport costs to China – compared to competing countries like Australia – are a major hurdle to increased exports out of South Africa, according to MD of global logistics company, Tigers. “Furthermore, the volatility of the rand and a slowing South African economy remain a concern.” Lawrence pointed out that import freight rates had been very volatile with extreme fluctuations and short-term validities, making planning and costing extremely challenging. “The Free Trade Agreement between Australia and China will see zero tariffs on most goods imported to China from Australia by 2020 which further places Australia in a far stronger trading position.” Lawrence said it would be “encouraging” if South Africa could negotiate a more favourable trade agreement with China, to make it more competitive as a rand-based exporter. While business between China and South Africa was weighted in favour of Chinese exports, he said the wine and perishable business was growing “and we expect this trend to continue.”
