Philippine exporters may consider tapping South Africa, a huge emerging market and deemed as among the hot spots for exports as well as investments in the next few years.
Its import is steadily increasing amidst the global economic recovery. Both imports and exports posted double-digit growth in 2010.
While South Africa produces many products for world-class quality for export, it is also a major importer of diverse products from most countries.
Data indicates that among its key import areas include agricultural products, airport retailing, computer software and services, computer software and services, pharmaceuticals, food and beverages, franchises and giftware.
“South Africa supplements local agricultural production with imports, key among these being consumer-oriented products, forestry products and intermediate products,” it said.
South Africa has good trade links in the region and abroad. It became the fifth member of the exclusive emerging market BRIC group also comprising Brazil, Russia, India and China.
On the other hand, among the sectors with high growth potential for investments are business process outsourcing and telecommunication and transportation sectors, both of which are being privatized.
“All sectors of the South African economy are open to foreign investors. No government approval is required and there are virtually no restrictions on the form or extent of the investment,” according to a data furnished by the Federation of International Trade Associations (FITA).
Other measures taken by its government are simple tax rules, investment incentives, a better regulatory policy on competition and protection of intellectual rightS.
sourCE: PHILEXPORT— Danielle Venz, PHILEXPORT News and Features