Importance Of Foreign Trade In South Africa

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Post the apartheid period, foreign trade in South Africa has seen a gradual increase after the lifting of several sanctions and boycotts. South Africa is the world's largest producer of chrome, manganese, platinum etc. and also the second largest producer of gold. It is also the world's third largest coal exporter. South Africa has a large agricultural sector base and is a net exporter of farming products in the region. The key international trading partners of South Africa—apart from the African countries—include Germany, the United States, China, Japan, the United Kingdom and Spain. Major exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. However, machinery and transportation goods make up more than one-third of the value of the country’s imports. Other imports include chemicals, manufactured goods, and petroleum. Currently UAE acts as a vital trade partner with African buyer and importers. Over the last five years the importance of building trade and investment relations keeping in mind economic development in the world has increased.
Africa
The Department of Trade & Industry uses its strong government-to-government relations and mechanisms to develop an economic growth agenda for Africa that focuses on:
1. Recognizing and establishing joint investment projects in partner countries
2. Promoting bilateral trade
3. Coordinating South African technical co-operation and assistance to support policy and institutional development in partner countries
4. Encouraging Cross-border infrastructure development
5. Promoting regional integration through the strengthening and consolidation of the Southern African Customs Union (SACU) and the Southern African Development Community (SADC) free trade agreement
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...ds a more varied energy mix, alternatives include gas, solar and nuclear.
The Johannesburg Stock Exchange (JSE) enjoyed a good year in 2013, with its growth far outperforming that of the overall South African economy. However, with capital flows to emerging markets displaying some unpredictability in recent weeks, and domestic challenges such as continued labour disputes a possibility, 2014 may see more modest performance, although potential IPOs may give it a welcome push. The latest projections from the government forecast GDP growth of 2.1% for last year. For foreign investors looking to place their funds in emerging markets, the JSE has been and will likely remain an attractive option, given that it is moderately large, diversified, liquid and well-regulated. Around two thirds of the value of listed bonds and one third of equities are held by foreign investors.

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