The links between Argentina and South Africa are strategic; that is, they involve significant long-run interests. In their search for a fairer and more balanced world, both countries have shared views, given their resource endowments and their economic and political development. They also share common interests in terms of integration, since they both seek to expand value chains and increase employment levels thus profiting from the economies of scale that an enlarged market would offer.
This entails strengthening the bilateral relation so as to multiply contacts, exploit new trade and investment opportunities, and foster enhanced understanding at the governmental level and between both societies.
Both countries, South Africa and Argentina, concentrate most of their exports in natural resources and manufactured goods. This trade pattern is strengthened by the greater concentration of Argentine exports to South Africa in agricultural products and manufactures thereof and South Africa in the mining sector and resources related to it as well as machinery, including motor vehicles.
Trade between South Africa and Argentina increased from US$ 326 million in 2000 to US$915 million in 2012. South Africa’s imports from Argentine represented 73.9% of the bilateral trade in 2000 and 73.4 % in 2013. This increased from US$ 241 million in 2000 to US$ 672 million in 2013, a total 178.5% increase.
South Africa’s exports to Argentina represented 26.1% of the bilateral trade in 2000 and 26.6% in 2013. It increased from U$S 85 million in 2000 to US$ 243 million in 2013, increasing by 185.4%.
South Africa mainly imports from Argentina the following products:
- Flour and pellets from the extraction of soybean oil;
- Vehicles for the transport of goods (not exceeding 5 tons);
- Wheat, and
- Meslin.
Reciprocal investments have so far been limited to a few firms of the mining industry (AngloGold Ashanti and Gold Fields), industrial (Pannar Seeds). A positive aspect trend is the expansion and diversification of Naspers (financial sector), SAB Miller (Manufacturing), and Acceleration (IT sector).
The top market sectors for South African products are:
- Agricultural machinery spare parts;
- Electronic Security Equipment;
- Food Processing Equipment;
- Information and Communication Technology (ICT);
- Medical Equipment, Instruments, and Supplies;
- Chemicals;
- Mining Equipment and Services;
- Renewable Energy Equipment;
Doing business with South Africa
http://www.southafrica.info/business/investing/open.htm
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