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

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

3. 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

4. Respondents: Exporters

7. 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

8. 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.

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

10. Experience

11. Responses by size

12. Sectors represented

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

14. Experience

15. Sectors represented

16. Exporters: Comparative and competitive advantage

17. Exporters: Innovative products

18. Potential exporters: features

19. Past exporters: features

20. Exporters: productivity

21. Potential exporters: price

22. Past exporters: price

23. Comparative and competitive advantage – Inputs - Raw materials

24. Labour cost

25. Energy cost

26. Cost of capital

27. Economies of scale

29. Proximity to markets

30. Similar taste

31. Government grants or export incentives

32. Potential exporters: Government grants or programmes

38. Past exporters: Government grants or programmes

43. Comparative and competitive advantage Value chains

44. Assistance needed to diversify

45. Resources (financial)

46. Foreign market information

47. Legal or regulatory

48. Tariff barriers

49. Non-tariff barriers

50. Customs (inefficient/bureaucratic)

51. Resources (management time)

52. Foreign languages and customs

53. Current incentives Potential exporters

55. Past exporters

57. Business collaboration

59. Membership of an export council

60. Regular supply of components to a high performing exporting company

61. Joint venture with a foreign partner to export products

62. Export services

63. Assistance with foreign trade fair participation

64. Product inspection

65. Credit insurance

66. Foreign exchange risk management

67. Consultancy related to customs duty refunds and drawbacks

68. Consultancy related to accessing trade agreements

69. Legal

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

71. Official statistics

72. Government services FERs

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

74. Inward-buying missions

75. Foreign Missions (Embassies, High Commissions, Consulates)

76. Outward selling missions

77. Exhibition participation

78. Preferred means of obtaining export-related assistance

79. Preferred means of obtaining export- related assistance: Past exporters

80. Agricultural Inspection

81. Expectations to increase exports

82. Priority markets Regional priorities

83. 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

84. 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

85. Conclusions 227 Lange St| Nieuw Muckleneuk| 0181 P.O. Box 11214 | Hatfield | 0028 Tel: (+27) 12 433 9340/1| Fax: (+27) 12 433 9344