SA exporters lag behind BRIC partners

Electricity supply challenges, excessively high port charges and over-legislation are just a few of the challenges the country’s exporters face on a daily basis. According to Janine Myburgh, President of the Cape Chamber of Commerce and Industry, while the stronger rand is helping exporters to some extent, the rising input costs and business uncertainty are casting a pall. “The economic indicators are not looking good. South Africa’s central bank expects the second-largest economy on the continent to grow at just 1.4% this year, levels not seen since the 2009 recession. This as a series of blackouts caused by a failing energy network as well as strikes impact our production,” she said. “Earlier this year a World Bank report showed that since 2005, South Africa’s total exports have grown in real terms by only 0.6% a year at a time when its BRIC counterparts – Brazil, Russia, India and China – are making immense gains into global markets.” Myburgh said the bulk of South African exports remained concentrated in a few mega firms which shipped products to countries around the world, with approximately 1000 companies generating 93% of all of the country’s exports. “These mega companies are, however, losing momentum as they are creating fewer new products and not expanding into new markets. It is obvious then that the smaller and medium companies need to pick up the slack if we are to continue working toward the goals of the National Development Plan, which calls for a growing export economy to create jobs.” INSERT & CAPTION Rising input costs and business uncertainty is casting a pall. – Janine Myburgh