Trading Partner Portal: South Africa

Overview

Trade Overview

Over the past two decades, South Africa’s post-apartheid government has made remarkable progress. In 2016, South Africa became the largest economy in Africa in terms of GDP according to the IMF.  With an average GDP growth of 2.5 percent, South Africa’s future looks bright. Their peaceful transition to democracy, priorities given to economic growth and dedication to human rights allowed South Africa to host the 2010 FIFA World Cup, which solidified their place on the world stage.
(US Department of State and World Trade Organization)

South Africa is the 42nd largest export destination with the United States, with exports more than doubling over the past decade.

ca-exports-to-south-africaIn 2016, two-way trade between South Africa and the United States was approximately $11.3 billion. As South Africa’s second largest export partner, the United States exported $4.6 billion to South Africa in 2016. 17.1 percent of exports were transportation equipment. This was followed by, non-electrical machinery (17percent), chemicals (15.4 percent), and computer and electronic products (9 percent), which comprised the majority of South Africa’s total imports from the United States. In 2016, the United States imported $6.7 billion from South Africa, 37.1 percent of that being primary metals.

California exported over $280 million to South Africa in 2016, making it the state’s 51st largest export destination. Computers and electronic equipment accounted for 25.4 percent of this total. (US Department of Commerce)

Foreign Direct Investment

According to the most recent figures in 2014, South Africa invested $765 million into the United States economy. In 2015, the United States invested $5.6 billion into South Africa. (U.S. Bureau of Economic Analysis)

Economist South Africa Country Report
Invest in South Africa
Investing in South Africa 2010
Projects in Progress 2009
South Africa Geared for Growth 2009

Information Provided by the South African Consulate General in Los Angeles

Trade Agreement / AGOA

U.S. Southern Africa Customs Union (U.S. – SACU) / African Growth & Opportunity Act (AGOA)

On November 4, 2002, the U.S. Trade Representative notified Congress of President Bush’s decision to negotiate a Free Trade Agreement with the member countries of the Southern African Customs Union (SACU). The five nations of the Southern Africa Customs Union are South Africa, Botswana, Namibia, Lesotho and Swaziland. Total U.S.-SACU trade totaled $17 billion in 2013.

A U.S.-SACU Free Trade Agreement would have built on the African Growth and Opportunity Act (AGOA) of 2000. The California Chamber of Commerce supported the AGOA, which President Bill Clinton signed on May 19, 2000 as part of The Trade and Development Act of 2000.

For more information, please see U.S. – Southern African Customs Union Free Trade Agreement

The African Growth and Opportunity Act (AGOA), extended to 2015, initially was enacted in 2000, eliminating duties on imports from African nations into the United States if those nations made significant efforts to open their economies.

Since its inception, AGOA has helped increase U.S. two-way trade with sub-Saharan Africa. In 2013, U.S. exports with the AGOA nations totaled over $22.8 billion, more than triple the amount in 2001. U.S. total imports from sub-Saharan Africa nearly doubled during this period to $38.1 billion.

U.S. Trade Representative Michael Froman stressed the need to renew AGOA beyond 2015 and said:

“Behind the billions of dollars in exports generated by AGOA, are hundreds of thousands of new jobs that have helped African men and especially women to support their families in ways that once seemed impossible. Countless African workers whose jobs depend on AGOA are now able to purchase goods and services that were previously beyond their means…By providing new market opportunities for African exports, especially of non-traditional and value-added products, AGOA has helped African firms become more competitive both in the United States and internationally.”

President Signs CalChamber-Supported Trade Bills
June 30, 2013

Statement by Ambassador Michael Froman on Congressional Passage of TPA
June 25, 2015

Presidential Proclamation – African Growth and Opportunity Act
December 2013

For more information, please see
U.S. Department of State
International Trade Administration
U.S. Trade Representitive
Brookings Institute – July 2013

U.S. Strategy

U.S. Strategy Toward Sub-Saharan Africa

In June 2012, Obama announced the new U.S. Strategy toward Sub-Saharan Africa with four main objectives:

(1.) strengthen democratic institutions

(2.) spur economic growth, trade and investment

(3) advance peace and security

(4) promote opportunity and development

This strategy emphasizes U.S. support for sustainable economic growth and prosperity in Africa.

Power Africa Initiative

Currently, over two-thirds of the population of 800 million people in sub-Saharan Africa has no access to power or electricity. The Power Africa Initiative was launched in June 2013 to double access to electricity in sub-Saharan Africa and provide more than 10,000 megawatts of electricity generation capacity that is cleaner and more efficient.

The U.S. government has committed to providing over $7 billion in aid and loan guarantees over a five-year period. Twelve U.S. government agencies including the U.S. Export-Import Bank (EX-IM), the Overseas Private Investment Corporation (OPIC) and the U.S. Trade and Development Agency (USTDA) are combining efforts to provide funding and technical assistance to the initiative.

Trade Mission / Event

Trade Mission to South Africa – 1995

The California Trade and Commerce Agency and the California Chamber of Commerce led a 20-member trade and investment mission to South Africa during the first week of October, 1995, to coincide with the Made in USA Trade Expo in Johannesburg, and with the opening of the California Office of Trade and Investment in Johannesburg.

The trip was a high-profile opportunity for California to introduce the state, its projects and way of doing business. Since the trade mission in 1995, U.S. exports to South Africa have nearly doubled.

For more articles and photos from the trade mission, please see the
October 20, 1995 Alert edition.

Trade Mission / Events

CalChamber Hosts Consul General of South Africa

(From left to right): Mrs. Susanne Stirling, CalChamber Vice President of International Affairs; The Honorable Cyril Ndaba, Consul General of South Africa in Los Angeles; Ms. Ezilda Samoville, Executive Director of the Senate Office of International Relations

The California Chamber of Commerce hosted The Honorable Cyril Sibusiso Ndaba, Consul General of South Africa in Los Angeles, and Ms. Ezilda Samoville, Executive Director of the Senate Office of International Relations on February 5. Mrs. Susanne Stirling, the CalChamber Vice President of International Affairs, discussed the trade and investment relationship between California and South Africa with Consul General Ndaba and Ms. Samoville.

South African Ambassador Highlights Country’s Growth

(March 24, 2004) South Africa’s continual strong economic growth is due in large part to international investment in the last decade of democracy, Ambassador Barbara Masekala told a California Chamber luncheon audience.

Masekala noted that in the last 10 years she has seen great economic achievements in South Africa due to strong trade partnerships and investment of the international community.