Asia is second on the list, writes Leonard Neill
AFRICAN COUNTRIES are the most promising new markets for exporters, but internal problems are hampering the efforts of South African manufacturers and producers, says a Johannesburg Chamber of Commerce and Industry survey.
The JCCI's export barometer, which is used to track the level of export business generated by its members in Gauteng, shows that in 1999 a total of 57% of respondents increased their exports by an average of 28% over the previous year.
The survey revealed that 'a staggering 62%' of respondents indicated that African countries were offering the best future prospects for business.
East Africa heads the list, with Tanzania on top as the favourite new market in the region, followed by Mozambique, Kenya and Uganda. Mauritius, Madagascar and Ethiopia are other leading countries named.
West Africa has the second most potential with Ghana and Nigeria to the fore. Asia fares fairly prominently as the second most desirable market showing a 19% interest, with Australia coupled in that region and leading the business.
Only 11% of respondents favoured the UK and Europe, with ongoing EU trade talks and restrictive practices cited as the major drawbacks. The Americas, both North and South, with their restrictive practices and high transport costs, present a handicap to business enterprise.
When asked to identify problem areas hampering the export drive, 80% of the companies reported that internal transport costs were unacceptably high. They also indicated that the punitive increase in ocean freight rates and cost of airfreight were putting business at risk.
A perennial concern expressed by exporters was the inefficiency experienced at the port of Durban. Perishable product exporters are most hampered by the lack of airfreight space, particularly during their most vulnerable peak seasons.
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