South Africa is a middle-income country located in the southern tip of Africa. This beautiful country is bounded by the Atlantic and Indian oceans. Namibia, Botswana, and Zimbabwe lie to the north, while Swaziland and Mozambique lie to the east. Although the country is classified as a middle-income country, it is blessed with abundant natural resources that help fuel its economy.
Although many cities and towns constitute SA, the advanced development is significant only in four main areas which are: Port Elizabeth, Cape Town, Johannesburg and Durban. Unfortunately, the other parts of the country apart from these four main areas manifest poverty and poor development. However, some of these areas are recently showing growth in economic development.
Unlike highly industrialized countries, development in third world countries is quite slow. Despite this reality, South Africa uses its resources and skills to establish world trade. The top three exports for which the country is famous are diamonds, gold, and platinum.
These three main products are exported to the United States, Japan, the United Kingdom, China and Italy. All these other countries depend mainly on the country for the supply of these goods. The country was able to export $7.5 million worth of products and merchandise to the United States in 2006 alone. Over the years, the amount of SA exports increased significantly, thus improving the economy of this country.
The United States has established a trade with South Africa that is manifested in the export and import commitment that these two countries have contracted. In fact, the United States is also exporting an exuberant amount of merchandise to the country. The country’s top three major imports from the United States include chemicals, machinery, and petroleum products. Germany, France, the United Kingdom, Japan and Saudi Arabia also import some products into South Africa. These countries import energy, capital goods, food, and fuel into SA
In addition to chemicals, machinery, and petroleum, the United States also imports telecommunications equipment, new and used passenger cars, material handling equipment, trucks, buses, special purpose vehicles, civil aircraft, and industrial machines.
Based on the quantity of these imported goods, fuel seems to have the highest priority. South Africa imports not only oil, but also coal. This just shows that there is a great need for fuel in the country. Foodstuffs such as corn, oats, barley, and sorghum are also some of the fastest growing imports.
South Africa’s import and export activities are well guided by the External Trade Organization, which sets guidelines and requirements for export and import activities. The organization imposes import duties, taxes and surcharges for the protection of South African business enterprises.