DOING BUSINESS WITH SOUTH AFRICA David Graham16 May 2011

SOUTH AFRICA: AN OVERVIEW Some key facts about South Africa: 2

SOUTH AFRICA: AN OVERVIEW 3 SubjectStatistic World Ranking Land Size1,219,090 sq.km25 GDP (2009)US$354 billion28 GDP per capita (2010) US$10,70090 GDP growth rate(2011) 3% for Exports (2010)US$76,8 billion38 Imports (2010)US$77 billion38

SOUTH AFRICA: AN OVERVIEW Some other facts about South Africa: 11 official languages. Population of Gauteng is approximately 10 million, but only 1,5% of South Africa’s land area. Stable democracy which recently joined the BRICs group of countries (Brazil, Russia, India and China). Excellent infrastructure. Very high rankings in respect of economic and financial management (treasury, stock exchange, banking system). Strong economic and trading ties with Africa. 4

SOUTH AFRICA: CHALLENGES South Africa faces a number of significant challenges: High unemployment Poverty and unequal distribution of wealth Crime Climatic challenges and threat of global warming Social challenges (health, housing and education) Reliance on imported oil and vulnerable electricity supply Equitable redistribution of land 5

FEATURES OF THE SOUTH AFRICAN AGRICULTURAL SECTOR Agriculture makes up 3% of the South African economy, 9% of its labour force and 8% of its exports. South Africa has a dual agricultural economy: Well-developed commercial farms Subsistence based production in deep rural areas Seven climatic regions from Mediterranean to sub- tropical, to semi-desert. Summer and winter rainfall areas which are prone to drought. 50% of South Africa’s water is used for agriculture. 6

SOUTH AFRICA AS A GLOBAL PLAYER IN AGRICULTURE 1.South Africa is among the top 5 global exporters of avocados, grapefruit, tangerines, plums, pears, table grapes, and ostrich products. 2.Key export groups are wine, citrus, sugar, grapes, maize, fruit juice, wool and deciduous fruit. 3.Important food and agricultural imports include rice, wheat, alcohol (whisky), animal feed ingredients, tea and coffee. Key competitive advantages include: World class infrastructure (including rail, ports and telecoms) Counter-seasonality to Europe Biodiversity Marine resources Competitive input costs (labour, electricity) Favourable Trade Agreements 7

FIELD CROPS AND HORTICULTURE The grain industry produces between 25% and 33% of total agricultural output. Maize is the largest field crop and staple food. 9,000 commercial maize farmers and thousands of small-scale producers. Other crops include wheat, lucerne, sunflower seed and groundnuts. South Africa is the world’s 13 th largest sugar producer. Citrus, deciduous and tropical fruit in different regions of the country. South Africa is the world’s 9 th largest wine producer. Vegetables including potatoes, tomatoes, onions and green mealies. Other crops include cotton, tobacco and tea. 8

LIVESTOCK FARMING This is the largest agricultural sector in South Africa 13,8 million cattle and 28,8 million sheep. Dairy farming involves 4,000 milk producers employing 60,000 farm workers. South Africa produces 85% of its beef requirements – with 15% being imported from Namibia, Botswana, Swaziland, Australia, New Zealand and the EU. South Africa has an important mutton and wool industry. Both poultry and pig farming are intensive and generally located near the major urban centres. Annual poultry meat production is about 960,000 tonnes. South Africa accounts for 65% of global sales of ostrich products 9

NAMPO 10  Name: NAMPO Harvest Day  Establishment: 1967 and at NAMPO Park since 1974  Owners of NAMPO: Grain SA (  Dates: Tuesday 17 - Friday 20 May 2011  Venue: NAMPO Park, Bothaville, Free State  Size of Exhibition: The largest agricultural machinery and livestock show in the Southern hemisphere (Indoors 17,060 sq.m – Outdoors 137,780 sq.m)  Exhibitors: Foreign exhibitors from Italy, Germany, Argentina, India and USA

NAMPO (2) 11 EXHIBITOR PROFILE Agricultural input suppliers including agricultural machinery, irrigation, chemical, transport, fertilizer and seed, extension services, commercial sectors, utilities, feed manufacturers, financial institutions and livestock breeders PRODUCT PROFILETractors, Agricultural machinery, Commercial vehicles, Irrigation equipment, Pumps, Generators, Research organisations, Financial services, banking and futures, Transport equipment and materials handling, Chemical products, Feeding systems products and services, Seeds, Dairy equipment and products, Pig, poultry, cattle and sheep equipment and services, Hydroponics, Artificial insemination equipment, services and products and IT technology for farming VISITOR PROFILEGrain, cattle, sheep, pig, chicken, vegetable, and fruit farmers, extension officers and government officials from southern Africa

NAMPO NAMPO HARVEST DAY PROGRAMME TUESDAY 17 - FRIDAY 20 MAY 2011 Subject to change 08:00Interactive tractor and implement demonstrations (demonstrations on request). East side of the terrain 08: :00Cattle program Static display of pedigree stock in KK Animal Nutrition Cattle Complex and Dairy Complex 08: :00Sheep program Static display of pedigree stock in Intervet Sheep Complex 08: :30Thoroughbred programme Static display of thoroughbreds behind Sheep Complex 09:00Farmer’s Patents Judging of Farmer’s Patents on Stand 104 (Tuesday only) 11:004 x 4 Vehicle demonstrations Next to stand : :00Sheep program Static display - sheep shearing, wool classification and handling demonstrations in the Intervet Sheep Complex 15:004 x 4 Vehicle demonstrations Next to stand :00Cattle program Pedigree stock parade 16:00Thoroughbred programme Thoroughbred parade

THANK YOU AND HAVE A GREAT VISIT TO NAMPO David Graham Managing Director International Trade Projects (Pty) Ltd