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We take a look at the international trade (imports and exports) that took place between South Africa and United States of America during April 2019. The data in this article is as obtained from South Africa's Revenue Service (SARS), which is responsible for customs in South Africa
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Where does the USA rank as a trading partner with South Africa?
For the month of April 2019, the United States was the 3rd biggest export destination for South African exports and it was the 3rd biggest import origin country for South Africa's imports. So the United States is a very important trading partner for South Africa, with it being the 3rd biggest export destination for South African goods and the 3rd biggest supplier of imports into South Africa for April 2019.
So what exactly does South Africa export to the United States? And what South Africa import from the United States? We take a look at the major product categories or goods exported to and imported from the United States below
So what exactly does South Africa export to the United States? And what South Africa import from the United States? We take a look at the major product categories or goods exported to and imported from the United States below
South African exports to the United States for April 2019
The tree map below shows the major product categories as well as the percentage each category makes up of the total value of goods exported to the United States during April 2019
Almost a third (29.42%) of the value of goods exported to the United States falls under precious metals, mineral products the second biggest export category with it making up 18.33% of total exports to the USA. The third biggest category (14.57%) was products of Iron and Steel. These three categories make up 62.3% of the total value of exports to the United States. The top 5 export categories for South Africa to the United States are listed below,:
- Precious metals
- Mineral products
- Products of iron and steel
- Chemicals
- Machinery
South African imports from the United States for April 2019
The tree map below shows the major product categories as well as the percentage each category makes up of the total value of goods imported from the United States during April 2019
Just over a quarter (26.11%) of the value of goods imported from the United States falls under Machinery , Chemicals was the second biggest import category with it making up 16.63% of total imports from the USA. The third biggest category (15.79%) was Vehicles, Aircraft and Vessels. These three categories make up 58.53% of the total value of imports from the United States. The top 5 import categories for South Africa from United States are listed below:
So a few observations regarding the trade between South Africa and the United States. Firstly the trade is very concentrated. And what we mean by that is the fact that a few number of product groups makes up the bulk of the value of goods being imported and exported between the two countries. As we showed the top 3 categories makes up over 60% of exports and almost 60% of imports.
The other and probably more important observation of the trade between the two countries is the fact that South Africa tends to export the more raw material or commodity based goods to the USA, while they tend to import more of the final manufactured goods from the USA. So why is this? Well there are a number of possible reasons for this. South Africa's manufacturing industry has been in decline for years. See our SA manufacturing page for more on South Africa's manufacturing industry.
Secondly, reliable stable power supply from ESKOM is another problem for big manufacturers in South Africa. Thirdly the United States is far more technologically advanced than the South Africa and their manufacturing capabilities might be far more efficient and cost effective, and they can and do probably manufacture a large number of goods South Africa is unable to manufacture either due to lack of tech, skills etc.
We don't think this concentration of trade, and what South Africa exports and imports from the United States will change anytime soon. And it is a big problem for South Africa as the profit margins charged on manufactured goods is far greater than thin margins made by exporting basic and raw materials.
- Machinery
- Chemicals
- Vehicles, Aircraft and Vessels
- Photographic medical equipment
- Equipment components (these tend to be car parts)
So a few observations regarding the trade between South Africa and the United States. Firstly the trade is very concentrated. And what we mean by that is the fact that a few number of product groups makes up the bulk of the value of goods being imported and exported between the two countries. As we showed the top 3 categories makes up over 60% of exports and almost 60% of imports.
The other and probably more important observation of the trade between the two countries is the fact that South Africa tends to export the more raw material or commodity based goods to the USA, while they tend to import more of the final manufactured goods from the USA. So why is this? Well there are a number of possible reasons for this. South Africa's manufacturing industry has been in decline for years. See our SA manufacturing page for more on South Africa's manufacturing industry.
Secondly, reliable stable power supply from ESKOM is another problem for big manufacturers in South Africa. Thirdly the United States is far more technologically advanced than the South Africa and their manufacturing capabilities might be far more efficient and cost effective, and they can and do probably manufacture a large number of goods South Africa is unable to manufacture either due to lack of tech, skills etc.
We don't think this concentration of trade, and what South Africa exports and imports from the United States will change anytime soon. And it is a big problem for South Africa as the profit margins charged on manufactured goods is far greater than thin margins made by exporting basic and raw materials.