Country Info: South Africa
Economic Background
South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth.
The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand.
GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force.
State power supplier Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability.
South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth. (Source: World Factbook, 2013)
Downloads
Copy of letter by Senators Coons and Isakson to Pres Zuma re poultry
Copy of letter sent by US Senators Coons and Isakson to South Africa's President Zuma, September 2015. This relates to the 'poultry' issue in the context of the South Africa Out-Of-Cycle Review under AGOA. The Senators urged South African President Jacob Zuma to act expeditiously to resolve remaining elements of the US-South Africa agreement reached in Paris earlier this year and allow US poultry exports to South Africa to resume.
DRAFT guidelines for for the application of a DAFF quota allocation import permit
ITAC - DRAFT guidelines for for the application of a DAFF quota allocation (for imports of poultry) permit - 30 Oct 2015. Background: The South African Poultry Association (SAPA) and the USA Poultry and Egg Export Council (USAPEEC) and National Chicken Council (NCC) agreed on an annual quota of 65 000 MT (the quota) of bone-in chicken pieces, classifiable under tariff subheading 0207.14.9, that can be imported into South Africa without...
South Africa - United States (TIFA) Agreement
Trade and Investment Framework Agreement between South Africa and the United States.
South Africa Government gazette - tariff rebate on US chicken imports
A temporary rebate provision under rebate item 460.03/0207.14.9/01.07 has been created for frozen meat of the species Gallus domesticus, cut in pieces with bone in, classifiable in tariff subheading 0207.14.9 and imported from or originating in the United States of America. This is created for such quantities, at such times and subject to such conditions as the International Trade Administration Commission (ITAC) may allow by specific permit...
Related News
'Strict AGOA rules put African policies and trade on the line' - Columnist
South Africa’s trade deal with the US, under the African Growth and Opportunity Act (AGOA), may have its benefits, however, overall it is heavily skewed in favour of the US. South Africa’s strategy of pursuing a “developmental trade” policy, in which trade agreements with other countries should promote growth, employment and the industrial upgrade of the country,...
US poultry exporters struggle with South Africa's empowerment provisos
US producers undershot their AGOA quota in 2016-17, as they struggled to build relationships with SA importers, many of whom lack experience and finance. US poultry producers nearly reached their full 65,000 ton quota of exports to SA under the Africa Growth and Opportunity Act (Agoa) in the year to end-March. However the start to the current year had been slow, the...
South Africa: Outgoing economic counsellor Laird Treiber sees big ‘untapped’ US-SA economic potential
The US Embassy’s outgoing Economic Counsellor, Laird Treiber, says there has been a steady stream of American investment into South Africa during his three-year tour and that, notwithstanding the current hiatus in investment activity, economic relations are poised to expand again, owing to the strongly complementary profiles of the two economies. In an interview with...
South Africa: Car makers in strong plea to US on duty-free access under AGOA
The automotive industry has made a strong plea to the US trade administration for it to continue enjoying the benefit of duty-free access to the US market under the African Growth and Opportunity Act (AGOA). Nico Vermeulen, director of the National Association of Automobile Manufacturers of SA, and Renai Moothilal, the executive director of the National Association of...
South Africa: Trade and Industry on AGOA industrialisation and regional value chains in Sub-Saharan Africa
The African Growth Opportunity Act (AGOA) is a cornerstone of United States (U.S.)-Africa trade relations and has facilitated mutually beneficial trade and investment relations between eligible African countries and the U.S. Total trade between the Sub-Saharan Africa and the U.S. stood at $33 bn in 2016. Through AGOA, non-energy exports from Sub-Saharan Africa (SSA)...
After AGOA: South Africa must prepare for two-way free trade agreements with US
US Commerce Secretary Wilbur Ross says America’s relationship with Africa “has to continue its transition from being ‘AID-based’ to ‘TRADE-based’”. “To that end, having two-way trade agreements, not just temporary trade preferences, would create long-term, sustainable improvements to quality of life on both sides of the Atlantic,” Ross told the Corporate...