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We take a look at the trade relationship between South Africa and New Zealand, arch rivals on both the rugby and cricket fields
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Source: Pexels
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Situated approximately 11,585 km away from each other’s capital cities - Cape Town and Auckland respectively - South Africa and New Zealand have never really had any sort of relationship until the early 2000s. During that time, what brought the two nations closer was sports - rugby to be more precise. After competing on the field for a while, the potential for trade was also discovered, particularly in areas such as the food industry, machinery, minerals, electronics, and vehicles.
Food
New Zealand’s number one exported good, which in 2019 accounted for 27.9% of the country’s total exports, is dairy. Dairy is also one of the top three most significant categories of export to South Africa, together with fish and machinery. This comes as no surprise since the island has been seen as a safe source of food for many years, particularly for this industry. On top of exporting, New Zealand’s Fonterra has created a stronger bond with South Africa by forming a joint-venture company with the latter's largest dairy group, Clover.
Food
New Zealand’s number one exported good, which in 2019 accounted for 27.9% of the country’s total exports, is dairy. Dairy is also one of the top three most significant categories of export to South Africa, together with fish and machinery. This comes as no surprise since the island has been seen as a safe source of food for many years, particularly for this industry. On top of exporting, New Zealand’s Fonterra has created a stronger bond with South Africa by forming a joint-venture company with the latter's largest dairy group, Clover.
Source: Pixabay
Vehicles
Meanwhile, South Africa’s highest exports towards NZ have been motor vehicles and paper. Vehicles contributed with a total of $11.4 billion, or 12.7% of its total exports, to the country’s economy in 2019. Moreover, this branch even improved export sales, due to a 5.6% gain. With an infrastructure that makes it almost impossible to compete with large automobile manufacturers, New Zealand has to keep relying on imports for the automotive industry.
Meanwhile, South Africa’s highest exports towards NZ have been motor vehicles and paper. Vehicles contributed with a total of $11.4 billion, or 12.7% of its total exports, to the country’s economy in 2019. Moreover, this branch even improved export sales, due to a 5.6% gain. With an infrastructure that makes it almost impossible to compete with large automobile manufacturers, New Zealand has to keep relying on imports for the automotive industry.
Entertainment
The two countries have also had a few attempts at tackling the entertainment industry together. One great example is District 9, a co-production of South Africa, New Zealand and the US, filmed in Johannesburg. Directed by South Africa’s Neill Blomkamp and produced by New Zealand’s Peter Jackson, the film garnered numerous awards and even received four Academy Awards nominations. With such great results, there is definitely potential there!
Another industry, also part of the entertainment sector, that looks like it’s starting to thrive for both countries is online casinos. More and more people are starting to turn to this industry since it is more convenient and it offers advantages that location-based casinos can’t. Websites like Bonus.net.nz exist to curate bonuses for customers to get the best deals and ensure the best experience they can get. Due to the ease of access, as well as a wide range of games, online casinos appeal to various groups of people, no matter where they’re from.
The two countries have also had a few attempts at tackling the entertainment industry together. One great example is District 9, a co-production of South Africa, New Zealand and the US, filmed in Johannesburg. Directed by South Africa’s Neill Blomkamp and produced by New Zealand’s Peter Jackson, the film garnered numerous awards and even received four Academy Awards nominations. With such great results, there is definitely potential there!
Another industry, also part of the entertainment sector, that looks like it’s starting to thrive for both countries is online casinos. More and more people are starting to turn to this industry since it is more convenient and it offers advantages that location-based casinos can’t. Websites like Bonus.net.nz exist to curate bonuses for customers to get the best deals and ensure the best experience they can get. Due to the ease of access, as well as a wide range of games, online casinos appeal to various groups of people, no matter where they’re from.
Source: Pixabay
Technology
Over recent years, there has been a greater focus on the need that South Africa has for digital and technological advancement. A recent study has found that the evolution of technology could open up new innovation and growth opportunities for the country, which would triple its productivity, resulting in a net gain of up to 1.2 million jobs by 2030. For this to happen, businesses must act now and take advantage of this chance and transit towards the digitisation.
Apart from their strong rugby relationship, the two countries seem to have managed an even stronger trade relationship that is worth billions of rands. As proof of that strong trade bond, in the first half of 2020, South Africa has become New Zealand’s fourth-largest African export market and would most probably maintain its position for the years to come.
Over recent years, there has been a greater focus on the need that South Africa has for digital and technological advancement. A recent study has found that the evolution of technology could open up new innovation and growth opportunities for the country, which would triple its productivity, resulting in a net gain of up to 1.2 million jobs by 2030. For this to happen, businesses must act now and take advantage of this chance and transit towards the digitisation.
Apart from their strong rugby relationship, the two countries seem to have managed an even stronger trade relationship that is worth billions of rands. As proof of that strong trade bond, in the first half of 2020, South Africa has become New Zealand’s fourth-largest African export market and would most probably maintain its position for the years to come.