In the wake of ongoing disruption since the coronavirus outbreak in the first quarter of 2020, local importers are hard pressed to ensure they remain on the cusp of volatile market dynamics, Dr Greg Cline has said.
“With businesses continuing to find their feet in an ever-changing economic climate since Covid-19, the trade industry has also been trying to adjust to the fluctuations of market demand,” the imports specialist at Investec Group said.
“Trade finance accounts for 3% of global trade, worth some $3 trillion annually, and while the market has seen better days, the industry is expecting to see a 7.2% increase in trade volumes for 2021.”
What was important though, Cline emphasised, was determining whether South African import businesses were able to capitalise on this increase – when pent-up demand emerged once again.
In addition, he said local import traders had to ask themselves whether they had the necessary working capital and trade finance in place to drive growth.
To answers these and other questions, Cline will discuss the following in an interview with Freight News next week:
- The impact of Covid on trade – specifically imports.
- Trade finance and the impact it has on liquidity, and how this can be translated into growth.
- Mitigating unpredictable currency fluctuation and what options there are to consider.
- Trends to expect in this space over the next 6-12 months.
Watch this space to find out more about our examination of the current trade landscape.
