Subtitle:Exporters Presenter:Dr. Andre Gouws Date:24 January 2013 Survey of exporters, past exporter and potential exporters

The purpose of the surveys Four groups were surveyed: – Exporters – Past exporters – Potential (non) exporters – Reference group

Profile of respondents: Exporters Total number of full time paid employees Province Response s Eastern Cape32 Free State3 Gauteng144 Kwazulu Natal37 Limpopo8 Mpumalanga7 North West4 Northern Cape2 Western Cape94 Origin of responses - exporters There were a total of 374 respondents

Respondents: Exporters

Benefits of exporting Commercial advantages – increased sales; – increased profits; – reduced risk; – lower unit costs; – economies of scale; – reduced seasonal fluctuations in sales; – extended product life cycle. Financial Organisational

Current export channels  Trading Houses in Canada and Hong Kong,  Sogo Shosha (general Trading House),  Semen S by product) in Japan,  Comercializadoras in Latin America,  OSCI (Opérateur Spécialisé en Commerce Extérieur) in France,  EMC (Export Management Company) and ETC (Export Trading Company) in the USA,  Export House in India.

Profile of respondents: Potential exporters Province Eastern Cape25 Free State5 Gauteng67 KwaZulu-Natal14 Mpumalanga3 North West3 Northern Cape2 Western Cape42 Origin of respondents

Experience

Responses by size

Sectors represented

Profile of respondents: Past exporters Province Responses Eastern Cape6 Free State1 Gauteng20 Kwa Zulu Natal4 Mpumalanga1 Northern Cape4 Western Cape14 Origin of respondents

Experience

Sectors represented

Exporters: Comparative and competitive advantage

Exporters: Innovative products

Potential exporters: features

Past exporters: features

Exporters: productivity

Potential exporters: price

Past exporters: price

Comparative and competitive advantage – Inputs - Raw materials

Labour cost

Energy cost

Cost of capital

Economies of scale

Proximity to markets

Similar taste

Government grants or export incentives

Potential exporters: Government grants or programmes

Past exporters: Government grants or programmes

Comparative and competitive advantage Value chains

Assistance needed to diversify

Resources (financial)

Foreign market information

Legal or regulatory

Tariff barriers

Non-tariff barriers

Customs (inefficient/bureaucratic)

Resources (management time)

Foreign languages and customs

Current incentives Potential exporters

Past exporters

Business collaboration

Membership of an export council

Regular supply of components to a high performing exporting company

Joint venture with a foreign partner to export products

Export services

Assistance with foreign trade fair participation

Product inspection

Credit insurance

Foreign exchange risk management

Consultancy related to customs duty refunds and drawbacks

Consultancy related to accessing trade agreements

Legal

Information on investment/joint venture opportunities (local and foreign)

Official statistics

Government services FERs

Primary market (i.e. in-market) research

Inward-buying missions

Foreign Missions (Embassies, High Commissions, Consulates)

Outward selling missions

Exhibition participation

Preferred means of obtaining export-related assistance

Preferred means of obtaining export- related assistance: Past exporters

Agricultural Inspection

Expectations to increase exports

Priority markets Regional priorities

The top 10 (new) countries that exporters plan to enter are: 1.Kenya 2.Angola 3.Nigeria 4.Tanzania 5.Mozambique 6.Uganda 7.Democratic Republic of the Congo 8.Zambia 9.Zimbabwe 10.Brazil

The least popular destinations for South African exporters are: 1.Cuba 2.Venezuela 3.Kuwait 4.Argentina 5.Taiwan Province of China 6.Republic of Korea 7.Mexico 8.Chile 9.Japan 10.Egypt

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