South African trade with Africa
South Africa's global economic strategy can be viewed through the lens of an economically reinvigorated Africa - part of the goal of the New Partnership for Africa's Development (Nepad). As a result, trade relations with African states are politically important, and of growing economic importance to South Africa. In particular, South Africa has strong, and mutually dependent economic links with Southern African states.
In 2002, around 16% of South Africa's exports went to the continent - a figure that needs to be balanced by Africa accounting for only 4% of South Africa's total imports in the same year. The trade imbalance is, to some degree, offset by substantial investment and development initiatives on the continent involving infrastructure, water and waste management, agribusiness, mining and human resource development, amongst others.
South Africa participates in a number of preferential trade relationships, both regional and bilateral.
Southern African Customs Union
The most important is the Southern African Customs Union of 1968, which consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. With few exceptions, free and unimpeded trade takes place among the SACU members.
Recently a new, reinvigorated Sacu agreement entered into force. While creating several new Sacu organs - such as the Sacu Council of Ministers, made up of finance and trade ministers - the agreement aims to enhance economic development, diversification, industrialization and competitiveness of member states.
Although Sacu members are at different levels of economic development, they face common challenges such as eradicating poverty, promoting sustainable economic growth and development as well as reducing high unemployment rates.
The new agreement seeks to safeguard the interests of smaller member states, and provides for joint exercise of responsibility over decisions affecting tariff setting, revenue pooling and overall direction of the organization.
The new agreement also provides for deeper economic integration through the development of common policies on industry, investment, agriculture and competition, as well as the harmonization of policies on unfair trade practice.
SADC Freed Trade Agreement
South Africa became a member of the Southern African Development Community (SADC) in 1994. The 13 other members are Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia, The Democratic Republic of Congo, Seychelles and Zimbabwe.
The SADC agreement consists of general objectives rather than specific obligations. The key policy objective is to strengthen trade and investment linkages between South Africa and other SADC countries.
In 2000 the SADC Protocol on Trade was implemented, which includes the establishment of a SADC Free Trade Area by 2008.
Trade with SADC countries doubled between 1998 (R16-billion) and 2002 (R32-billion). In 2002 imports from the region increased substantially to R4.2-billion.
Key trading partners
Zimbabwe
Despite political instability, Zimbabwe was the largest export destination for South African goods in 2003, accounting for some R6.5-billion. Imports from Zimbabwe amounted to some R2.6-billion in the same year. The Joint Commission for Economic Scientific, Technical and Cultural Co-operation between South African and Zimbabwe was revived in 2002 with the aim of strenghtening bilateral relations.
Mozambique
Mozambique is a key destination for South Africa's exports to Africa, on its own accounting for some R5.6-billion in 2003 (some 18% of South Africa's exports to Africa). Mozambiques
under-development means the trade balance is heavily in South Africa's favour. Only R28-million worth of imports transacted in 2003.
Zambia
Trade between South Africa and Zambia has increased substantially since 1993. Both countries are taking advantage of exisiting bilateral agreements to foster relations - evident in an annual increase of trade and investment flow between the two countries.
Zambia is another substantial importer of South African goods, accounting for some R5.6-billion in 2003. Zambia imports into South Africa amounted to R3.4-billion in the same year.
Angola
Exports to Angola amounted to over R3-billion in 2003, a figure equalled by imports in the same year. The first meeting on the Joint Commission of Co-operation between the two countries was held in February 2003.
Nigeria
Bilateral and multilateral relations with Nigeria are strategically important to South Africa - particularly in forums such as Nepad
and the African Union (AU). South African companies have been successful in several sectors in Nigeria, including the hospitality, financial services, communications and energy sectors. Nigeria accounts for some R2.5-billion worth of local exports. R2.7-billion was imported into South Africa from Nigeria in 2003.
Kenya
As with Angola, the trade balance with Kenya is relative equitable. Exports to Kenya amounted to R2.2-billion in 2003 and imports R2.1-billion in the same year.
Tanzania
The trade balance with Tanzania is strongly in South Africa's favour. Exports to the East African country totalled R1.8-billion in 2003 and imports R136-million in the same year. Tanzania and South Africa have signed an MOU on trade and industry programmes and a general agreement on economic, scientific, technical and cultural co-operation.
Mauritius
Exports to Mauritius amount to R2-billion in 2003 and imports R124-million in the same year.
Mauritius is one of South Africa's largest trading partners in SADC, and bilateral relations are developed in that context.
Malawi
The financial, retail, construction and telecommunication sectors are providing strong opportunities for investment in Malawi.
It is one of South Africa's main trading partners in SADC and, like Mauritius, bilateral relations are guided by broader SADC agreements. In 2003, exports to Malawi totalled nearly R1.7-billion. Imports in the same year were R381-million.
Ghana
Exports to Ghana totalled R1.1-billion in 2002, but imports only R52-million in the same year.
Democratic Republic of Congo (DRC)
Despite an unsettled time in the DRC, exports to the country are worth some 1.2-billion (2003) and imports R28-million.
SouthAfrica.info reporter
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