7 - An investigation into factors impacting on exports from South Africa to the Southern African Development Community (SADC)
Corresponding Author(s) : Chris Adendorff
African Sociological Review,
Vol. 18 No. 1 (2014): African Sociological Review
Abstract
Manufacturers face vigorous competition in local and export markets and need to have a genuine competitive advantage in order to grow. The South African government has recognised the importance of developing national manufacturing capacity as a means of increasing employment and reducing poverty. To this end, the government provides substantial support to both the manufacturing and exporting sectors. The government also negotiated the Southern African Development Community (SADC) agreement which leverages competitive advantages for South African manufacturers exporting into the region. However, since the ratification of the SADC agreement in 2008, there has been no perceptible increase in export activity to the region when compared to other markets. This research study was conducted to determine why this is the case and what factors are influencing the process. A structured literature review was undertaken to encapsulate export barriers, the role of the South African government in the export process, and the SADC agreement. The findings of the reviewed literature form the basis of the survey that led to the compilation of the research primary data. The results indicate that export barriers do not pose a major obstacle to trade into the SADC region. The role that the South African government holds was less conclusive with some successes noted, but on the whole the impact is not meaningfully positive. The SADC agreement and the dynamics prevailing in the free trade area do have a positive impact on exports to the region. The level of awareness with regard to the government support initiatives appears to be low.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Adendorff, C.M., 2010. SIERRA LEONE IN 2030: SCENARIOS FOR THE FUTURE, Paper presented to USB Business School, Futures Studies, Stellenbosch University, South Africa.
- Arteaga-Ortiz, J. and Fernández-Ortiz, R., 2010. Why Don’t We Use the Same Export Barrier Measurement Scale? An Empirical Analysis in Small and Medium- Sized Enterprises. Journal of Small Business Management, 48(3), pp. 395-420.
- Brouthers, L., Nakos, G., Hadjimarcou, J. and Brouthers, K., 2009. Key Factors for Successful Export Performance for Small Firms. Journal of International Marketing, 17(3), pp. 21-38.
- Collis, J. and Hussey, R., 2009. Business Research: A practical guide for undergraduate and postgraduate students. 3rded. New York: Palgrave Macmillan.
- Daya, Y., Ranoto, T. and Letsoalo, M., 2006. Intra-Africa Agricultural Trade: A South African Perspective. Acta Commercii, pp. 99-113.
- Economic Commission for Africa, 2011. Governing development in Africa - the role of the state in economic transformation.Addis Ababa: Economic Commission for Africa.
- Evans, J., 2010. Statistics, Data Analysis, and Decision Modeling. 4th ed. New Jersey: Prentice Hall.
- Finscope, 2010. FinScope South Africa Small Business Survey 2010, Johannesburg: Finmark Trust.
- Flatters, F., 2002. Trade Policy Strategies for Mozambique. Maputo, s.n., pp. 1-9. Gorlach, V., 2011. An Econometric Analysis of the Impact of Economic Freedom on Economic Growth in the SADC, Unpublished Masters thesis, Nelson Mandela Metropolitan University,Port Elizabeth: Faculty of Business and Economic Sciences.
- Government Communication and Information Services, 2006. Accelerated and Shared Growth Initiative for South Africa (AsgiSA). [Online] Available at: http://www.info.gov.za/asgisa/asgisa.html [Accessed 24 March 2012].
- Gwartney, J., Lawson, R. and Hall, J., 2011. Economic Freedom of the World: 2011 Annual Report, s.l.: Fraser Institute.
- Hallaert, J., Cavazos, R. and Kang, G., 2011. Estimating the Constraints to Developing Countries Trade, s.l.: s.n.
- Herrington, M., Kew, J. and Kew, P., 2009. Tracking Entrepreneurship in South Africa from a GEM perspective, s.l.: Global Entrepreneurship Monitor (GEM).
- Hill, C. W., 2011. International Business: Competing in the Global Marketplace. 8th ed. New York: McGraw-Hill/Irwin.
- Hye, Q. and Siddiqui, M., 2011. Export-led growth hypothesis: Multivariate rolling window analysis of Pakistan. African Journal of Business Management, 5(2), pp. 531-536.
- Jordaan, A. and Kanda, P., 2011. Analysing The Trade Effects Of The EU-SA & SADC Trading Agreements: A Panel Data Approach. South African Journal of Economic and Management Sciences, 14(2), pp. 229-244.
- Karungu, P. and Khamfula, Y., 2004. Impact of export earnings fluctuation on capital formation: evidence from four SADC countries. Applied Financial Economics, Volume 14, pp. 1097-1103.
- Koch, S. and Peet, M., 2007. Non-tariff barriers faced by South African firms: Are there any lessons?. South African Journal of Economic and Management Sciences, NS10(4), pp. 530-543.
- Köksal, M. and Kettane, T., 2011. Export problems experienced by high- and low- performing manufacturing companies: A comparative study. Asia Pacific Journal of Marketing and Logistics, 23(1), pp. 108-126.
- Leonidou, L. C., 2004. An Analysis of the Barriers Hindering Small Business Export Development. Journal of Small Business Management, 42(3), pp. 279-302.
- Mbatha, C. and Charalambides, N., 2008. What is really in the economic partnership agreements for the Southern African region? A perspective from Botswana’s beef export markets. Agrekon, December, 47(4), pp. 410-432.
- McLeay, F. A. H., 2010. The art of SME export marketing: a case study. Marketing Review, 10(3), pp. 239-258.
- Mpinganjira, M., 2011. Perceived benefits and barriers to export involvement: Insights from non-exporters. African Journal of Business Management, September, 5(22), pp. 9116-9124.
- Nsingo, S. and Steyn, E., 2007. Technical Regulatory Reform in Africa: A Condition for a Competitive Regional Economy. Journal of Public Administration, September, 42(4), pp. 414-425.
- Palley, T., 2011. The Rise and Fall of Export-led Growth, New York: Mew America Foundation.
- Parker, A., 2009. A Qualtitative Study of the Key Success Factors for Multinational Corporations Operating in Sub-Saharan Africa, Stellenbosch: Faculty of Economic and Management Sciences.
- Rangasamy, L., 2009. Exports and Economic Growth: The case of South Africa. Journal of International Development, October, Issue 21, pp. 604-606.
- Reddy, K., 2011. Developing Africa: Trade barriers, liberalization and inequality in the World Trade Organisation. African Journal of Business Management, 30 September, 5(22), pp. B686-B696.
- Skae, F. and Barclay, B., 2007. Managing the linkage between export development and poverty reduction: An effective framework. Management Decision, 45(8), pp. 1208-1223.
- The Department of Trade and Industry, 2010. Annual Review of Small Business in South Africa 2005-2007, Pretoria: s.n.
- The Department of Trade and Industry, 2011. Medium-Term Strategic Plan 2011-2014, Pretoria: Department of Trade and Industry.
- The World Bank, 2010. Progress Report on the Regional Integration Assistance Strategy for Sub-Saharan Africa, Washington: The World Bank.
- The World Bank, 2012. De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services, Washington: s.n.
- Trung,T., 2008. Performance of export-oriented small and medium-sized manufacturing enterprises in Viet Nam. Asia-Pacific Trade and Investment Review, Volume 4,pp. 83-112.
- UN, 2012. World Economic Situation and Prospects 2012: Update as of mid-2012. UNDP, 2012. Africa Human Development Report.
- Van der Walt, J., 2007. Barriers to Exports faced by Manufacturing SME’s in South Africa, Pretoria: Gordon Institue of Business Science.
- Van Eldik, S. and Viviers, W., 2005. The measurement of export readiness of companies in South Africa. Southern African Business Review, 9(2), pp. 1-11.
- Williams, D., 2010. Export Initiation in Small Locally-Owned Firms from Emerging Economies: The Role of Personal factors. Journal of Developmental Entrepreneurship, 15(1), pp. 101-122.
- Yin, R.K., 2004. Case Study Research: Design and Methods. Sage Publications, Fourth Edition.
References
Adendorff, C.M., 2010. SIERRA LEONE IN 2030: SCENARIOS FOR THE FUTURE, Paper presented to USB Business School, Futures Studies, Stellenbosch University, South Africa.
Arteaga-Ortiz, J. and Fernández-Ortiz, R., 2010. Why Don’t We Use the Same Export Barrier Measurement Scale? An Empirical Analysis in Small and Medium- Sized Enterprises. Journal of Small Business Management, 48(3), pp. 395-420.
Brouthers, L., Nakos, G., Hadjimarcou, J. and Brouthers, K., 2009. Key Factors for Successful Export Performance for Small Firms. Journal of International Marketing, 17(3), pp. 21-38.
Collis, J. and Hussey, R., 2009. Business Research: A practical guide for undergraduate and postgraduate students. 3rded. New York: Palgrave Macmillan.
Daya, Y., Ranoto, T. and Letsoalo, M., 2006. Intra-Africa Agricultural Trade: A South African Perspective. Acta Commercii, pp. 99-113.
Economic Commission for Africa, 2011. Governing development in Africa - the role of the state in economic transformation.Addis Ababa: Economic Commission for Africa.
Evans, J., 2010. Statistics, Data Analysis, and Decision Modeling. 4th ed. New Jersey: Prentice Hall.
Finscope, 2010. FinScope South Africa Small Business Survey 2010, Johannesburg: Finmark Trust.
Flatters, F., 2002. Trade Policy Strategies for Mozambique. Maputo, s.n., pp. 1-9. Gorlach, V., 2011. An Econometric Analysis of the Impact of Economic Freedom on Economic Growth in the SADC, Unpublished Masters thesis, Nelson Mandela Metropolitan University,Port Elizabeth: Faculty of Business and Economic Sciences.
Government Communication and Information Services, 2006. Accelerated and Shared Growth Initiative for South Africa (AsgiSA). [Online] Available at: http://www.info.gov.za/asgisa/asgisa.html [Accessed 24 March 2012].
Gwartney, J., Lawson, R. and Hall, J., 2011. Economic Freedom of the World: 2011 Annual Report, s.l.: Fraser Institute.
Hallaert, J., Cavazos, R. and Kang, G., 2011. Estimating the Constraints to Developing Countries Trade, s.l.: s.n.
Herrington, M., Kew, J. and Kew, P., 2009. Tracking Entrepreneurship in South Africa from a GEM perspective, s.l.: Global Entrepreneurship Monitor (GEM).
Hill, C. W., 2011. International Business: Competing in the Global Marketplace. 8th ed. New York: McGraw-Hill/Irwin.
Hye, Q. and Siddiqui, M., 2011. Export-led growth hypothesis: Multivariate rolling window analysis of Pakistan. African Journal of Business Management, 5(2), pp. 531-536.
Jordaan, A. and Kanda, P., 2011. Analysing The Trade Effects Of The EU-SA & SADC Trading Agreements: A Panel Data Approach. South African Journal of Economic and Management Sciences, 14(2), pp. 229-244.
Karungu, P. and Khamfula, Y., 2004. Impact of export earnings fluctuation on capital formation: evidence from four SADC countries. Applied Financial Economics, Volume 14, pp. 1097-1103.
Koch, S. and Peet, M., 2007. Non-tariff barriers faced by South African firms: Are there any lessons?. South African Journal of Economic and Management Sciences, NS10(4), pp. 530-543.
Köksal, M. and Kettane, T., 2011. Export problems experienced by high- and low- performing manufacturing companies: A comparative study. Asia Pacific Journal of Marketing and Logistics, 23(1), pp. 108-126.
Leonidou, L. C., 2004. An Analysis of the Barriers Hindering Small Business Export Development. Journal of Small Business Management, 42(3), pp. 279-302.
Mbatha, C. and Charalambides, N., 2008. What is really in the economic partnership agreements for the Southern African region? A perspective from Botswana’s beef export markets. Agrekon, December, 47(4), pp. 410-432.
McLeay, F. A. H., 2010. The art of SME export marketing: a case study. Marketing Review, 10(3), pp. 239-258.
Mpinganjira, M., 2011. Perceived benefits and barriers to export involvement: Insights from non-exporters. African Journal of Business Management, September, 5(22), pp. 9116-9124.
Nsingo, S. and Steyn, E., 2007. Technical Regulatory Reform in Africa: A Condition for a Competitive Regional Economy. Journal of Public Administration, September, 42(4), pp. 414-425.
Palley, T., 2011. The Rise and Fall of Export-led Growth, New York: Mew America Foundation.
Parker, A., 2009. A Qualtitative Study of the Key Success Factors for Multinational Corporations Operating in Sub-Saharan Africa, Stellenbosch: Faculty of Economic and Management Sciences.
Rangasamy, L., 2009. Exports and Economic Growth: The case of South Africa. Journal of International Development, October, Issue 21, pp. 604-606.
Reddy, K., 2011. Developing Africa: Trade barriers, liberalization and inequality in the World Trade Organisation. African Journal of Business Management, 30 September, 5(22), pp. B686-B696.
Skae, F. and Barclay, B., 2007. Managing the linkage between export development and poverty reduction: An effective framework. Management Decision, 45(8), pp. 1208-1223.
The Department of Trade and Industry, 2010. Annual Review of Small Business in South Africa 2005-2007, Pretoria: s.n.
The Department of Trade and Industry, 2011. Medium-Term Strategic Plan 2011-2014, Pretoria: Department of Trade and Industry.
The World Bank, 2010. Progress Report on the Regional Integration Assistance Strategy for Sub-Saharan Africa, Washington: The World Bank.
The World Bank, 2012. De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services, Washington: s.n.
Trung,T., 2008. Performance of export-oriented small and medium-sized manufacturing enterprises in Viet Nam. Asia-Pacific Trade and Investment Review, Volume 4,pp. 83-112.
UN, 2012. World Economic Situation and Prospects 2012: Update as of mid-2012. UNDP, 2012. Africa Human Development Report.
Van der Walt, J., 2007. Barriers to Exports faced by Manufacturing SME’s in South Africa, Pretoria: Gordon Institue of Business Science.
Van Eldik, S. and Viviers, W., 2005. The measurement of export readiness of companies in South Africa. Southern African Business Review, 9(2), pp. 1-11.
Williams, D., 2010. Export Initiation in Small Locally-Owned Firms from Emerging Economies: The Role of Personal factors. Journal of Developmental Entrepreneurship, 15(1), pp. 101-122.
Yin, R.K., 2004. Case Study Research: Design and Methods. Sage Publications, Fourth Edition.