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trade-study-imageA STUDY ON SOUTH AFRICA / NETHERLANDS TRADE OPPORTUNITIES

(AUGUST 2010)

The South African Embassy in The Hague (Netherlands) has undertaken a study, in cooperation with the South African Netherlands Chamber of Commerce (SANEC), on new and additional opportunities for trade between South Africa and the Netherlands. While the study addresses also the trade potential in general terms, the concentration (and most detailed information) is focused on the agriculture, chemicals, capital equipment and automotive sectors. As such the study identifies the individual products where the most potential exists and where South Africa could be a competitive supplier for existing needs in the Dutch market. Additional information is also provided that would assist in the business decisions that may need to be taken.

The study report as well as the databases and other supporting documentation have been included on this website (as well as on the website of SANEC) so as to make the information readily available to:

  • South African business people who are looking for export opportunities for the products that they produce; and 
  • Netherlands business people who are looking to reliably source the products that they need from competitive South African suppliers.

The study report documentation that has been placed on the website includes the following:

Export promotion activities are undertaken by the Embassy, in cooperation with SANEC, in order to seize all export opportunities the Netherlands hosts for South African exporters and as such the study has been designed to provide helpful information upon which business decisions can be made:

  • To support South Africa’s export promotion undertakings for selected product groups in the agricultural, chemical, capital equipment and automotive industries a list was compiled with products that were imported by the Netherlands and exported by South Africa. 
  • To identify the potential supply these products were consequently categorized based on the strength of South Africa’s export position for the Netherlands, resulting four groups including strong position products, weak position products, markets to develop, and products for which no tradable supply was exported by South Africa.

To allow easy analysis of the potential supply selected measures were combined into a single product attractiveness score. The attractiveness of the potential South African supply for the Netherlands was rated based on South Africa’s export position for the Netherlands based on the value of South African exports and the Netherlands imports, South Africa’s share in import of the Netherlands assuming that for these products the Netherlands has a preferential attitude, and South Africa’s share in world export as a measures of product competitiveness.

For those South African products currently imported by the Netherlands an additional database provides information with import values including insurance and transportation costs and lists import growth rates, import tariffs, PPU (price per unit) including and excluding tariffs, a worldwide PPU ranking per product, and demonstrates the effect of tariffs on South Africa’s competitive position. This data provides an indication of the products for which South Africa has a comparative (i.e. cost) advantages or at least a strong comparative position from the perspective of an importer in the Netherlands and should enable importers to make better informed and more efficient decisions.

The main objective of this study and the Export Strategy is to increase exports of South Africa by focusing export promotion activities on importers in the Netherlands. This study should:

  • Link supply of South African products with demand in the Netherlands 
  • Serve as a marketing tool to attract the attention of importers and potential importers 
  • Increase awareness of South African products 
  • Create transparency for importers in the Netherlands 
  • Provide a rationale to purchase products in South Africa 
  • Contribute to economic growth in South Africa as well as in the Netherlands.

The Embassy and SANEC are available, and would welcome the opportunity to, work with South African and Netherlands business people that want to utilise the opportunities identified by the study for doing business:

South African Embassy SANEC 
Mr Herman van der Kroef Mark Agterdenbosch
Trade Marketing Officer General Manager
Tel: +31 (0)70 750-7644 Tel: +31 (0)70 347-0781
Cell: +31 (0)61 460-0714 Fax: +31 (0)70 335 2766
E-mail: hvdkroef@thedti.nl E-mail: mark.agterdenbosch@sanec.nl
Web: www.southafrica.nl Web: www.sanec.org
Web: www.zuidafrika.nl    

If any additional information is needed on how to work with, and extract useful information/data from, the study, please also contact the Embassy or SANEC.