South African consumers are generally very brand conscious. The
middle class, particularly, has quite good consumption levels,
including the new black middle class. These consumers are looking for
sophisticated goods and tend to reduce the amount they spend on vital
commodities or housing.
The after-sales service is extremely important in South Africa,
especially in terms of providing technical and spare part services.
Consumer Profile and Purchasing Power
The South African
consumer is a well-informed consumer. Moreover, the dynamism in
country’s economy has resulted into an increase in purchasing power and
an expansion of the black middle class having higher disposable income
levels.
A
major phenomenon in evolution of the distribution sector in South
Africa has been the emergence of supermarkets or hypermarkets, which
sell large quantities of almost all consumer goods on a self-serve
basis. The hypermarkets, located in suburban shopping centers, have
disrupted the traditional distribution chain by purchasing directly
from manufacturers and bypassing the wholesaler, with low margins
achieving high turnover, thereby placing price pressure on all
competing outlets.
Market Shares
Though
there is growing black middle class with considerable disposable
incomes, there are still huge differences in income in South Africa
with 20% of households accounting for 60%. The big South African
consumer market splits in two parts: a market of white people &
some newly affluent back people with a high purchasing power, and a
market of large majority of black people still with a very limited
purchasing power.
The majority of the retail sale is carried out by shopping centres,
groupments of small shops, big department stores (Stuttafords, Edgars,
Woolworths), supermarkets (Checkers, Pick' n Pay) and hypermarkets
(Hyperama and Makro).
The traditional business remains developed, especially outside the
conglomerations, but does not represent a big market share, as it is
almost exclusively meant for poor population.
Member of World Trade Organisation Party to the Kyoto Protocol Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal Party to the Montreal Protocol on Substances That Deplete the Ozone Layer Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies
Import licenses are required for a certain number of products (refer to Schedule 1 of the Import Control Regulations Act). These licences are delivered by the following authorities (as per the nature of the product): Department of Agriculture, Department of Water Affairs, Department of Sea and Fisheries, Department of Trade and Industry, Energy affairs and Department of Health. Some products are subject to specific controls (caution: the list given below is not exhaustive): - A phytosanitary certificate is required for vegetables and related products. It is delivered by the Ministry of Agriculture from the country of origin. - A veterinarian certificate is required for the import of living animals and fresh, deep-frozen or canned meat. - A certificate of disinfection is necessary for the import of woollen products, cotton, clothes,etc. -A certificate of inspection by a recognised institute is required only for exporters who export for the first time in South Africa, it is not required when a good business relationship is established. - A quality certificate may be asked for fruits and vegetables.
Besides the manual method, an electronic data entry and clearance system is also used for registered firms.
Import documents required for customs clearance: 1. Copies of the Bill of Lading 2. A declaration of Origin Form DA59.
3. Bill of Entry (DA500) 4.
Four copies and one original of Commercial Invoice 5.
One copy of the insurance certificate for sea freight 6.
Three copies of the Packing List.
Importing Samples
For the entry of commercial samples, advertising material and professional equipment, South Africa applies the ATA (Temporary Admission) Carnet system. Goods should be adequately marked for identification purposes so as to facilitate their passage through customs. South Africa is a member of the ATA Convention (see: ATA Carnet)
80% of all freight carried in South Africa is done so by road. Nearly 7% of Gross National Product is spent on freight transport. About 69% of road-freight tonnage is carried by firms or operators transporting freight in the course of their business, and 29% by road haulage firms. For more information, consult the South African Association of Freight Forwarders's website.
South Africa is the world's largest producer and exporter of gold
& platinum and the 5th largest producer of diamonds in the world.
The country produces 70% of the world platinum and also has 60% of the
global coal reserves.
The country's diverse manufacturing industry is a world leader in
several specialized sectors, which includes railway rolling stock,
synthetic fuels, and mining equipment and machinery.
Business Directories
Multi-sector Directories
Consulting Engineer - Find a consulting engineer in South Africa. Brabys.com - Directory of businesses in South Africa and neighboring countries. Business Directory - Find a business in South Africa. Easyinfo - Find a business in South Africa. ezSearch business directory - Searching for businesses in South Africa. Infospace - Free online business directory in South Africa. SA Yellow Online - South Africa's online business directory. South Africa Online - Directory of business and finance in South Africa. Webtraders Directory - Directory of importers and exporters in South Africa. Yellow Pages - Find a business in South Africa.
Manufacturers Associations of the Main Industries
51 professional associations listed for South Africa.
South Africa: Selling and Buying
