Turkish problems put US$18.4bn in trade at risk

South Africa’s rapidly growing
trade with Turkey may be put
at risk by the current internal
political turmoil, which has
had an immediate impact on
the Turkish tourism industry,
with a knock-on effect on other
sectors.
Rating agency Fitch has said
that Turkish banks are at risk
as a result of the attempted
coup and “greater political
polarisation that appears to be
following in its aftermath”.
Growth prospects for the
economy have already been
downgraded from an expected
4.5% to 2.9% by HSBC Bank.
This will have a far-reaching
impact as Turkey is the world’s
17th largest economy.
Since the establishment of
diplomatic relations between
Turkey and South Africa in
1993 there has been rapid
growth in two-way trade.
The value of trade
volume between the two
countries rose to $18.4 billion
in 2015, up from $4.9 billion
in 2010.
Exports and imports have
been pretty much balanced, but
in the first five months of this
year Turkey imported goods
worth US$394 994 000 from
South Africa, and exported
goods worth US$142 709 016,
according to the Turkish
Statistical Institute.
According to the South
African ministry of foreign
affairs, there are approximately
70 Turkish companies
operating in South Africa,
representing an investment of
around US$500 million.