SA performs poorly in Agoa driven export sector

Volumes down 40% in dollar terms SOUTH AFRICA has been the single most disappointing performer in the apparel export market to the United States under Agoa. Figures revealed last week reflect a slight year-on-year increase from countries in the Southern African Customs Union (SACU) for the nine-month period to September 2004, but South Africa’s poor showing taints this performance, according to Eckart Naumann quoted on Agoa.info. SACU’s exports increased by US$38m (R228m) compared with the same period last year. South Africa’s clothing exports have, however, decreased by over 40% in dollar-terms, which if one considers the strengthening of the local currency, pushes this decline even further into the red, says Naumann. For the first month of this year, the country’s US-bound apparel exports were valued at US$109m (R654m), down from US$184m (R1.1bn) over the same time last year, he added. While exporters have blamed the strong rand, this does not explain why each of the other four SACU countries - Namibia, Botswana, Swaziland and Lesotho - whose currencies are directly linked to the SA rand, have shown a far better performance, he points out. Taking SA’s garment exports out of the equation, BNLS (Botswana, Namibia, Lesotho and Swaziland) have collectively increased clothing exports to the US by US$114m (R684m).