TRADE AND ECONOMIC PROSPECTS IN SOUTH AFRICA

STRATEGIC LOCATION Air-route distances from inland Johannesburg 12 947km 9 164 km 6400km 9260km 7189 km 8 451km Air-route distances from inland Johannesburg

SOUTH AFRICA IN SADC 1,221,037 km² The size of Germany, France, Italy, Belgium and the Netherlands combined South Africa is a middle income developing country with large supply of natural resources, well developed financial, legal, communications, energy and transport sectors, with modern infrastructure and a stock exchange ranking amongst the 16 largest of the world.

South Africa in the World South Africa is well integrated into the regional economic infrastructure by membership in the Southern African Development Community (SADC) and the Southern African Customs Union (SACU) with Botswana, Namibia, Lesotho,and Swaziland. South Africa is a WTO member. In 2011, South Africa joined Brazil, Russia, India and China as the only African country in the leading emerging market group, BRICS.

The South African economy sectors primary (agriculture, fishing, mining): 7 percent secondary (manufacturing, construction, utilities): 20 percent, tertiary (trade, transport and services): 73 percent The tourism sector has experienced continued growth, capitalizing on South Africa's natural beauty, wild life preserves and excellent infrastructure. The sector is a major foreign exchange earner, along with minerals and agricultural products

Market Opportunities Opportunities for exporters and investors in South Africa exist in the growing consumer base and through projects aiming to upgrade and develop infrastructure. South African Government-owned utilities such as Eskom (electric power) and Transnet (transportation) have plans for capital expenditure amounting to more than $70 billion

Market Opportunities (cont) In general, the best prospects for exports are in: Capital goods; Consumer products and services; Electricity Power Generation Systems; Transportation, Infrastructure and Civil Construction; Franchising; Renewable Energy; Pollution Control Equipment; Mining Equipment; Medical Equipment and Healthcare Services; Telecommunications and Information Technology.

Commission rates for agents (also known as a Commission Sales Rates) These rates can range from 3 to 25 percent commission per concluded transaction.

Pricing Prices are generally market-determined, with the exception of petroleum products, certain agricultural goods and prices administered by government-owned services and utilities companies such as the South African Post Office, ESKOM (electricity utility), SANRAL (road tolling agency) and Telkom (telecommunications) South Africa applies a 14 percent Value Added Tax (VAT) on all goods and services, except for some basic staple food items. In Industrial Development Zones (IDZ) there is a VAT suspension on imports and exports, provided the finished product is exported.

DOING BUSINESS WORLD RANKING World Bank Doing Business in 2012 Ranked South Africa 39 of 185

Trade Agreements The European Union-South African Trade, Development and Cooperation Agreement that came into effect in 2000, incorporates the Free Trade Agreement (FTA) 2010 for RSA exports to EU and 2012 for EU exports to RSA

Trade Agreements (cont) South Africa has bilateral agreements with Greece on the: Protection of Capital and Investments and Avoidance of Double Taxation

Terms and payments South African importers utilize most of the standard payment methods available in international commerce. Cash in Advance Cash Against Documents Cash On Delivery Letters of Credit (LC), this form protects both buyer and seller against non-payment and is issued by a bank.

Terms and payments (cont) Irrevocable LC: if the exporter is concerned about the reliability of the importer an irrevocable LC should be used. Confirmed irrevocable credit: if the exporter is also concerned about the standing of the issuing bank and/or the standing of the importer's country then a confirmed irrevocable credit should be used. Reliable methods for payments are: Telegraphic Transfers (TT’s) or S.W.I.F.T. (Society for Worldwide Interbank Financial Telecommunication).

SCAM TRADING PRACTICES

USEFUL LINKS/CONTACTS http://madb.europa.eu/madb/ SOUTH AFRICAN EMBASSY ATHENS Mavridis Antonis mavridisantonis@gmail.com GREEK CONSULATE GENERAL JOHANNESBURG Panagiotis Dermetzoglou ecocom-johannesburg@mfa.gr

SOUTH AFRICA Invites you to see for yourself.