DISCOVER.DHL.COM Trading with the rainbow nation

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1 Trading with the rainbow nation

HOW TO START EXPORTING TO SOUTH AFRICA

DISCOVER.DHL.COM Trading with the rainbow nation

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2 Trading with the rainbow nation

NICKELNickel and related products have been rising for some time. The value of imports increased by 59% between 2011 and 2016 and was up 98% between 2015-2016.

SERVICES 67.5%INDUSTRY 29.7%

AGRICULTURE 2.8%1

AN EMERGING MARKETSouth Africa is classed as a middle-income emerging market, with well-developed financial, legal,

communications and transport sectors. Its stock exchange is in the world’s top 20, and is the largest in Africa.

TOP IMPORT OPPORTUNITIES IN SOUTH AFRICA2

SOUTH AFRICA’S ECONOMY BY SECTOR

ANTIQUES Although it’s a smaller niche market, antiques has been the number one growth sector between 2015 and 2016, rising an incredible 154%.

FASHIONSouth Africa’s economic

growth might be stuttering, but its e-commerce sector is motoring ahead. Fashion e-commerce is set to grow at 20.7% p.a. until 2022.

DISCOVER.DHL.COM Trading with the rainbow nation

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Deutsche Post DHL 2018

3 Trading with the rainbow nation

SOUTH AFRICA RANKED 82nd The World Bank’s Ease of Doing Business league table puts South Africa in 82nd position out of 190 countries. Why? The time required to import goods and the paperwork required are higher compared to OECD High Income nations.5

GDP IS RISING SLOWLYSouth Africa’s economy has been through a turbulent few years, hitting a low point in 2016. But the future looks brighter, with modest GDP growth predicted for the next five years.3

$1,500 PER CAPITA DEMAND Given South Africa’s population of 54.8 million people, its total $83.2 billion in 2017 imports translates to roughly $1,500 in yearly product demand from each South African.4

IMPORTS UP 11.3% IN 2017 South Africa imported US$83.2 billion worth of goods from around the globe in 2017, up by 11.3% from 2016 to 2017.

294.

90 344.

06

361.

16

374.

26

389.

60

404.

28

419.

39

2016 2017 2018 2019 2020 2021 2022

SOUTH AFRICA GDP (billion U.S. Dollars)

DISCOVER.DHL.COM Trading with the rainbow nation

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4 Trading with the rainbow nation

TOYS, HOBBIES AND DIYWORTH US$557 MILLION IN 20182018-2022 GROWTH RATE: 12.6%

E-COMMERCE IN SOUTH AFRICA

90% of major South African brands advertise on social media.

FURNITURE AND APPLIANCESWORTH US$671 MILLION IN 20182018-2022 GROWTH RATE: 15.6%

FASHIONWORTH US$585 MILLION IN 20182018-2022 GROWTH RATE: 20.7%

FOOD AND PERSONAL CAREWORTH US$263 MILLION IN 20182018-2022 GROWTH RATE: 12.9%

ELECTRONICS AND MEDIAWORTH US$1 BILLION IN 20182018-2022 GROWTH RATE: 8.8%

HOW SOUTH AFRICAN E-COMMERCE IS PERFORMING8

13.7% GROWTH Total e-commerce revenue in South Africa is projected to grow at 13.7% each year between 2018 and 2022, resulting in a market volume of US$5.2 billion by 2022.6

E-COMMERCE FROM OVERSEAS 27% of South Africans purchase from the United States, 14% from Europe.7

MAJOR SHOPPING DAYS International online sale days such as Black Friday and Cyber Monday are popular in South Africa, creating opportunities for overseas sellers.

DISCOVER.DHL.COM Trading with the rainbow nation

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Deutsche Post DHL 2018

5 Trading with the rainbow nation

I’M READY FOR CROSS-BORDER TRADE WITH SOUTH AFRICA. WHAT NEXT? Take advantage of our business expertise by opening an account with DHL Express. Visit our website here and we’ll be delighted to help.

REFERENCES1. https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html

2. https://www.trademap.org/Index.aspx

3. https://www.statista.com/statistics/370513/gross-domestic-product-gdp-in-south-africa/

4. http://www.worldstopexports.com/south-africas-top-10-imports/

5. http://www.doingbusiness.org/rankings/

6. https://www.statista.com/outlook/243/112/ecommerce/south-africa

7. https://www.export.gov/article?id=South-Africa-ecommerce

8. https://www.statista.com/outlook/243/112/ecommerce/south-africa

TRADE REGULATIONS AND CUSTOMS INFORMATION

15%

VAT increased by 1% to 15% in April 2018.

TRY TASFor an estimate of landed costs for shipments going to South Africa use the free DHL Express Trade Automation Services (TAS) tool: tas.dhl.com

South Africa Customs and Excise

South Africa SARS Imports Guidance

Import Duty Tariff Codes

KEY CONTACTS

SARSGet used to the name ‘SARS’. It’s South Africa’s tax and revenue authority, and it also runs customs.

VAT