Key South African import areas
While South Africa produces many products of world-class quality for export, it is also a major importer of diverse products from most countries. From pharmaceuticals to telecommunications, South Africa is an advanced consumer of the latest on offer from international sources.
Agricultural products
South Africa supplements local agricultural production with imports, key among these being consumer-oriented products, forestry products and intermediate products.
One of the mainstays of the South African economy, the agricultural sector holds many opportunities with both large commercial and emerging farmers in areas such as capital investment, training, equipment and services supply.
Airport retailing
Airports Company South Africa (ACSA) handles about 90% of the country's aviation requirements, operating three international airports (Johannesburg International, Cape Town International and Durban International), seven national airports (Port Elizabeth, East London, George, Kimberly, Upington, Bloemfontein, and Pilanesberg Airport near Sun City).Encouraged by the potentially lucrative retail and property sectors, ACSA has identified opportunities in airport retailing, and continues to develop both airport infrastructure and peripheral property.
Computer software and services
One of the main areas of growth is the demand from small and medium-sized companies for high-end computer systems. This is set to become a major target for IT companies in the near future. The South African government is also expected to be a major purchaser of software.
South Africa imports some 80% of its software from the United States, with the balance from Israel, Germany, the United Kingdom and France.
Pharmaceuticals
More than US$1-billion worth of pharmaceuticals are sold in South Africa annually, and the market is expected to grow substantially.
Dispensing occurs via private channels, dispensing doctors, retail pharmacies, retail chains, private and public institutions, industrial clinics, and private and government hospitals.
Food and beverages
South Africa has always had a well-developed food and beverage industry, partly because of the country's major agricultural activity, and partly because of its relatively sophisticated food requirements.
During the apartheid years the food industry developed mainly to satisfy the domestic market and, as growth was limited by local requirements, a consolidation of the major companies took place.
Since South Africa has become a member of the global market, a number of multinational companies have formed partnerships with local food companies, and new opportunities have opened up.
Franchises
Key sectors for development include: bBuilding, office and home services; automotive products and services; entertainment and leisure; hair, health and beauty; printing and photographic development; and restaurants.
Giftware
South Africa has an expanding consumer base and a growing disposable income, and South African consumers are prepared to pay a higher premium for international brand products.
Railways
Over the last 20 years, thousands of kilometres of South African railways have suffered losses of traffic and now need upgrading, or are out of service due to lack of capital investment and maintenance of existing infrastructure.
The South African government is aware that the railways are critical to the economic and social development of the country, and are committed to addressing the problems. Opportunities lie in state-of-the-art equipment, operations, services and investment.
Security and safety equipment
There is strong growth in private security industry technology, such as CCTV and digital surveillance equipment, sophisticated access control systems (smart card technology), and IT systems.
Many cities have introduced surveillance cameras, and businesses are increasingly updating systems with the latest technology. Home security is another key area.
Telecommunications services
The South African telecoms market is expect to grow by 14% by 2004 as the sector's liberalisation continues. The South African telecommunications market will see a second fixed line national operator compete with incumbent Telkom. The provision of state-owned signal satellite distributor Sentech with an international licence is also in the pipeline.
Tourism
Given its significant contribution to the economy, the development of a strong tourism industry is a high priority for the South African government, with many incentives and development schemes under way.
Opportunities exist for companies in hotel furnishing and equipping, but a much broader range of opportunities exist in this thriving sector.
Water and wastewater
The South African government is committed to ensuring that all its citizens have access to a minimum standard of potable water and sanitation. Many South African municipalities are looking to overseas companies to help them address these problems through concessions or management contracts.
There have been early successes, and it is expected that there are many more opportunities for water utilities and contractors to win future business.
SAinfo reporter
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