1. EXPORT WEEK 2015
TRADE STATISTICS

2. An overview of international trade statistics: local, regional and international
Trading with KZN

3. What’s international trade
International trade means that you can wear Italian shoes and American jeans while eating Chinese food, watching a British documentary, with a French desert chilling in the fridge
If you walk into a supermarket and are able to buy South American bananas, Brazilian coffee and a bottle of South African wine, you are experiencing the effects of international trade
UCT GetSmarter
Investopedia
Tropical Heat
No need to hop on a boat to bring home some island style – tropical prints are everywhere this season
FairLady Oct 2015

4. Why trade?
More balanced production [or provision] of seasonal goods [and services]
Cost reduction (lower unit costs due to scale economies)
Extended product lifecycle (for different markets with different levels of development and discernment)
Improved product quality & creativity (to conform with foreign conditions)
Hedging of risk (directing supply to fast-growth markets)

5. As a small open economy, South Africa participates quite meaningfully in international trading platforms
Inventions and innovations in information and communications technologies (ICT) have made it possible for countries such as South Africa to keep transparent records of their international trade activities
Trade stats:
Global trade (X)
Africa (total & share of global)
SA (total and % of global)
Most traded commodities:
(Global, Africa & South Africa)
Largest trade markets:
(global, SA’s [X & M], KZN’s [X & M])
SA and KZN’s trade balance (or net exports)
Lessons

6. $18, 682,444,395,000
Europe the largest contributor to world trade at US$6.4tr
Asia second at US$5.6tr
North America follows at US$2.8tr
Africa’s share the smallest at US$630bn
Europe and Americas net importers (their shares as destinations larger than their shares as origins, Europe 36.6% vs 35.6%, Americas 16.9% vs 13.2%.)
All other regions were net exporters, an indication of their trade dependence with the Americas and Europe
This explains why the world economy slows down when these economies experienced financial and fiscal challenges
Africa’s contributed 3.50c to every dollar traded in the world

7. World exports since 2001 (US$ tr)
Europe the largest contributor to world trade at US$6.4tr
Asia second at US$5.6tr
North America follows at US$2.8tr
Africa’s share the smallest at US$630bn
Europe and Americas net importers (their shares as destinations larger than their shares as origins, Europe 36.6% vs 35.6%, Americas 16.9% vs 13.2%.)
All other regions were net exporters, an indication of their trade dependence with the Americas and Europe
This explains why the world economy slows down when these economies experienced financial and fiscal challenges
Africa’s contributed 3.50c to every dollar traded in the world
Source: WTO/UNCTAD (2015), TradeMap

8. Europe and Asia backbone of world trade
Imports
Europe the largest contributor to world trade at US$6.4tr
Asia second at US$5.6tr
North America follows at US$2.8tr
Africa’s share the smallest at US$630bn
Europe and Americas net importers (their shares as destinations larger than their shares as origins, Europe 36.6% vs 35.6%, Americas 16.9% vs 13.2%.)
All other regions were net exporters, an indication of their trade dependence with the Americas and Europe
This explains why the world economy slows down when these economies experienced financial and fiscal challenges
Africa’s contributed 3.50c to every dollar traded in the world
Source: WTO (2014), WTS Report

9. South & Central America
Europe, Asia and North America still the backbone of world trade
Destination
North America
South & Central America
Europe
CIS
Africa
Middle East
Asia
World
Origin
16.8
4.3
36.4
3.1
3.4
4.2
29.6
100.0
6.5
1.2
2.0
0.1
0.2
0.4
2.7
13.2
South & Central America
1.0
1.1
0.7
0.0
4.0
2.8
24.9
1.4
3.6
36.3
Commonwealth of Independent States (CIS)
2.2
0.8
0.3
0.5
0.9
3.3
0.6
3.8
7.4
5.5
4.7
1.5
31.5
Europe the largest contributor to world trade at 36.3% (exports) and 36.4% (imports)
Asia second at US$5.6tr
North America follows at US$2.8tr
Africa’s share the smallest at US$630bn
Europe and Americas net importers (their shares as destinations larger than their shares as origins, Europe 36.6% vs 35.6%, Americas 16.9% vs 13.2%.)
All other regions were net exporters, an indication of their trade dependence with the Americas and Europe
This explains why the world economy slows down when these economies experienced financial and fiscal challenges
Africa’s contributed 3.50c to every dollar traded in the world
Source: WTO (2014), World Trade Statistics Report

10. World’s leading export markets, 2014 (US$ bn)
Source: WTO/UNCTAD - TradeMap (2015)

11. World, Africa & SA top 10 export products
$18, 682,444,395,000
Africa
$542,995,368,000 (3%)
South Africa
$90,612,104,000 (0.5%)
2014
Mineral fuels, oils, distillation products (Saudi Arabia, Russian Fed, USA)
Mineral fuels, oils, distillation products (#6) (Nigeria, Angola, Algeria)
Pearls, precious stones, metals, coins
Electrical, electronic equipment
(China, Hong Kong, USA)
(South Africa, Botswana, Ghana)
Ores, slag and ash
Machinery, nuclear reactors, boilers
(China, Germany, USA)
(South Africa, DRC, Sierra Leone)
Mineral fuels, oils, distillation products
Vehicles other than railway, tramway
(Germany, Japan, USA)
Electrical, electronic equipment (#3)
(Tunisia, Morocco, South Africa)
Pearls, precious stones, metals, coins (#12) (Switzerland, Hong Kong, USA)
(South Africa, Morocco, Tunisia)
Iron and steel
Plastics and articles thereof
(China, USA, Germany)
Copper and articles thereof (#3)
(Zambia, DRC, South Africa)
Optical, photo, technical, medical, etc apparatus (USA, China, Germany)
Cocoa and cocoa preparations (#7)
(Cote d’Ivoire, Ghana, Nigeria)
Edible fruit, nuts, peel of citrus fruit, melons
Pharmaceutical products
(Germany, Switzerland, Belgium)
(South Africa, Tunisia, Morocco)
Organic chemicals
(China, USA, Belgium)
(South Africa, Egypt, Zimbabwe)
Aluminium and articles thereof (91.3%)
Iron and steel (#20)
(China, Japan, Germany)
Edible fruit, nuts, peel of citrus fruit, melons (South Africa, Egypt, Cote d’Ivoire)
Plastics & articles thereof
The world trades mainly in (i) fuels and (ii) manufactures, of which electrical and electronic equipment, machinery and vehicles contributed the largest portion
Iron and steel (SA #21)
Pearls (SA #12)
Africa exports: minerals (Nigeria, Angola, Algeria, Libya, Equatorial Guinea, SA #6)
Copper: Zambia, DRC, SA
Electronics: Tunisia, Morocco, SA
Fruit: Ghana, SA
Source: WTO/UNCTAD - TradeMap (2015)

12. For every $100 traded in the world, 50c came from SA
South Africa’s share of world exports (%), 2005—2014
For every $100 traded in the world, 50c came from SA
Source: WTO/UNCTAD - TradeMap (2015)

13. South Africa’s top destination and source markets, 2014
Source: Quantec (2015)

14. South Africa’s top export & import products, 2014
Source: Quantec (2015)

15. RSA trade by province (X & M) (%), avg 2010—2014

16. KZN export & import markets, 2014
Source: Quantec (2015)

17. KZN export & import products, 2014
Source: Quantec (2015)

18. KZN’s M has consistently > X
RSA & KZN export & import values, 2005—2014
KZN’s M has consistently > X
Source: Quantec (2015)

19. RSA & KZN trade balance, 2005—2014
Source: Quantec (2015)

20. Lessons
World trade [exports] have grown tremendously in the past decade
Africa’s and South Africa’s contribution to world exports have been quite rigid (3.5% and 5% respectively)
KZN’s share of SA’s exports around 10% (i.e 5c of the 50c that SA contributes to world exports
South Africa has recorded a trade deficit 80% of the time between 2005 and 2014
KZN’s deficit (M larger than X) has been chronic
While there is no tested link between trade balance and unemployment rates in the country, there is a wide belief that excessive imports have eroded domestic jobs
Jobs lost, particularly in manufacturing due to large imports of finished goods, have not been sufficiently replaced by growth in other sectors

21. Lessons
There is strong drive towards industrialisation and value addition to the country’s exports of natural resources
Industrial Policy Action Plan – IPAP
KZN Industrial Economic Hubs – IEHs
KZN Industrial Development Strategy – IDS
Special Economic Zones and Industrial Development Zones (SEZs & IDZs)
South Africa is open to trade, but there is a need to address deficiencies such as the unemployment rate – widely believed to be structural in nature
Growth in trade should show meaningful impact on job creation
Export development high on the agenda, to support export promotion & job creation
DTI & TIKZN services available to assist accelerated export growth