Logistics challenges hamper Brazil-SA trade growth

Trilateral trade between India, Brazil and South Africa has been forecast to grow to a staggering US$15 billion by 2014, according to Riaan le Roux, acting deputy director general of Trade and Investment South Africa. “That is the vision and the target we have set and while it may seem like an astronomical figure, we believe – judging by the growth figures – that this is quite achievable.” Speaking at the opening of this year’s second Brazilian trade mission to South Africa last week, Le Roux said South Africa was committed to growing bilateral trade with Brazil. “At present trade between the two countries is in the region of US$1.7 billion. It has been growing steadily if one looks at 2000 for example when trade only amounted to US$500m.” He said much work still needed to be done as Brazil was not one of the country’s top ten trading partners – another vision for 2014. A trade agreement signed between the two presidents last July is a fasttrack mechanism to see trade grow significantly,” he said. Welbar Barral, foreign trade secretary (Ministry of Development, Industry, and Foreign Trade) of Brazil, said while there was opportunity there were also challenges. “Logistics remains a major challenge that needs to be addressed. There is only one daily flight from Sao Paulo to Johannesburg. That must be increased and we also need more sea carriers.”