South Africa - Market Challenges

There is a serious and growing concern due to many political, economic and regulatory factors affecting foreign trade. This includes corruption and inappropriate reports in high government circles that reached Crisando in 2017 under President Jacob Zuma, important unemployment, violent crime, poor infrastructure and the administration of poor people in the management of poor people. An increasingly oppressive political debate on the direction of economic policy has been ruined by very low economic development and a leading party is running away from the failure of local elections in August 2016.

American companies entering this market should face a mature and competitive market, represented by prominent European and Asian competitions. A trade agreement with the European Union allows many European products to be deported to South Africa without customs duties or lower than US products.

Rand-Dollar exchange rate can reduce planning, especially for small or new businesses. Although the coverage is readily available, and the rand is one of the most commercial currencies in the world, the price reflects interest rates that are more than the United States and inflation due to the relatively high historical value of South Africa.

For new US exporters, these abnormal business needs have been combined with qualified local importers and service providers to spur on low-impact entry into the market, which are a key contractor for the South African government and major economic players. Acting as a South African government is constantly changing compulsory industrialization requirements for foreign suppliers, which it is often considered a cost and risk factor for trade in South Africa.

Since 2012, the South African government has strengthened labor laws and foreign ownership and has made industrialization important. Special concern is professional industry, security services and agriculture. In view of the great dissatisfaction with unemployment, poverty and inequalities, it remains neutral that it will be directed at the burden of the rule of law.