This beautiful country is bounded by the Atlantic and Indian Oceans. Namibia, Botswana, and Zimbabwe lie on its North, while Swaziland and Mozambique lie on its East. Although South Africa is cate…
This beautiful country is bounded by the Atlantic and Indian Oceans. Namibia, Botswana, and Zimbabwe lie on its North, while Swaziland and Mozambique lie on its East. Although South Africa is categorized as a middle-income country, it is blessed with abundant natural resources that help in boosting up its economy.
Even though many cities and towns constitute South Africa, advanced development is significant in four major areas only which are: Port Elizabeth, Cape Town, Johannesburg, and Durban. Unfortunately, the other parts of South Africa aside from these four major areas manifest poverty and poor development. However, some of these areas are recently showing growth in economic development.
Unlike highly industrialized countries, development in third-world countries is rather slow. Despite this reality, South Africa utilizes its resources and skills in establishing global trading. The three major exports for which South Africa is famous are diamonds, gold, and platinum.
These three major products are exported to the United States, Japan, United Kingdom, China, and Italy. All these other countries rely mainly on South Africa for the supply of these goods. South Africa was able to export $7.5 million worth of products and merchandise to the United States alone in 2006. Over the years, the amount of South Africa’s export significantly increased, thus improving the economy of this country.
The United States has established trading with South Africa which is manifested in the export-import commitment that these two countries have entered upon. In fact, the United States is exporting an exuberant amount of merchandise to South Africa as well.
The top three major imports of South Africa from the United States include chemicals, machinery, and petroleum products. Germany, France, the United Kingdom, Japan, and Saudi Arabia import some goods to South Africa as well. These countries import energy, capital goods, food, and fuel to South Africa.
Aside from chemicals, machinery, and petroleum, the United States also import telecommunications equipment, new and used passenger cars, materials handling equipment, trucks, buses, special purpose vehicles, civilian aircraft, and industrial machines.
Based on the amount of these imported goods, fuel seems to be taking the top priority. South Africa imports not only petroleum but coal as well. This only shows that there is a great need for fuel in South Africa. Food products such as corn, oats, barley, and sorghum are some of the fastest-growing imports too.
The import and export activities of South Africa are well guided by the South African Foreign Trade Organization which establishes guidelines and requirements for export and import activities. Duties, taxes, and import surcharges are imposed by the organization for the protection of the trading ventures of South Africa.
ABOUT THE AUTHOR: Gen Wright.