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EXPLORING OPPORTUNITIES IN THE SOUTH

AFRICAN MARKET FOR SRI LANKA’S EXPORTS

2008-2012

(Inclusive of January - July 2013 Export Data)

Prepared By: Export Development Board (EDB), Sri Lanka August 2013

ii Exploring Opportunities in the South African Market For Sri Lanka’s Exports

TABLE OF CONTENT

Table of Content i

List of tables v

List of figures viii

Executive summary x

1. Significance of the study 01

2. Objective of the study 01

3. Overview of the South African economy 01

3.1 Business environment in the South African market 02

3.2 Risk Assessment of the South African market 03

3.3 Logistic Performance of South Africa 04

4. Country comparison of South Africa and Sri Lanka in terms of Exports and Imports valuation 05

5. Performance of Sri Lanka’s exports to the South African market 05

5.1 Exports to world Vs Exports to South Africa by Sri Lanka 06

5.2 Sri Lanka’s share in South African market 06

6. Bilateral trade between Sri Lanka and South Africa 07

7. Products currently exported to South Africa with more opportunity to expand 09

7.1 Product wise analysis of selected export items 13

7.1.1 Coconut, Abaca, Ramie and other Fiber (HS 530500) 13

7.1.2 Solid or Cushioned tyres (HS 401290) 14

7.1.3 Natural rubber in other forms (HS 400129) 15

7.1.4 Cucumbers and Gherkins (HS 200110) 15

7.1.5 Lead Monoxide (HS 282410) 16

7.1.6 Black Tea- Tea Bags (HS 090230) 17

7.1.7 Cinnamon (HS 090611) 19

7.1.8 Black Tea- Bulk (HS 090240) 20

7.1.9Knitted Gloves covered with plastics of rubber (HS 611610) 20

7.1.10 Ornamental Fish – Live (HS 030110) 21

7.1.11 New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193) 21

7.1.12 Women/ Girls Suits of other textiles knitted or crocheted (HS 610469) 22

7.1.13 Activated Carbon (HS 380210) 23

iii Exploring Opportunities in the South African Market For Sri Lanka’s Exports

7.1.14 Surgical Gloves (HS 401511) 23

7.1.15 Women/ Girls Trousers or Breeches (HS 620469) 24

7.1.16 Tableware and Kitchenware (HS 691110) 25

7.1.17 Woven Fabrics (HS 540710) 25

7.1.18 Dresses of Synthetic rubber (HS 620443) 26

7.1.19 Gloves of Vulcanized rubber (HS 401519) 27

7.1.20 T-shirts, Singlets and other vests of cotton, knitted (HS 610910) 28

7.1.21 T-shirts, Singlets and other vests of other textile materials, knitted

(HS 610990) 28

7.1.22 Women/Girls Panties and Briefs Cotton, Knitted (HS 610821) 29

7.1.23 Brassieres and parts of Textile materials (HS 621210) 29

7.1.24 Technically Specified Natural Rubber - TSNR (HS 400122) 30

8. Potential exportable products to South African market 31

8.1 Rubber tires for buses or Lorries 32

8.2 Wheels including parts and accessories for motor vehicles 32

8.3 Tiles, cubes and glazed ceramics 33

8.4 Cuttle fish and squid 33

8.5 Rubber tire for motor car 34

8.6 Footwear-outer soles of rubber or plastics 34

9. Barriers to Trade 35

9.1 Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber

(HS 530500) 35

9.2 Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290) 36

9.3 Average tariff applied by South Africa for Natural rubber in other forms (HS 400129) 37

9.4 Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110) 38

9.5 Average tariff applied by South Africa for Lead Monoxide (HS 282410) 39

9.6 Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230) 40

9.7 Average tariff applied by South Africa for Cinnamon (HS 090611) 41

9.8 Average tariff applied by South Africa for Black Tea- Bulk (HS 090240) 42

9.9 Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber (HS 611610) 43

iv Exploring Opportunities in the South African Market For Sri Lanka’s Exports

9.10 Average tariff applied by South Africa for Ornamental Fish – Live (HS 030110) 44

9.11 Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial

handling vehicle (HS 401193) 45

9.12 Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or

crocheted (HS 610469) 46

9.13 Average tariff applied by South Africa for Activated Carbon (HS 380210) 47

9.14 Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511) 48

9.15 Average tariff applied by South Africa for Women/ Girls Trousers or Breeches

(HS 620469) 49

9.16 Average tariff applied by South Africa for Tableware and Kitchenware

(HS 691110) 50

9.17 Average tariff applied by South Africa for Woven Fabrics (HS 540710) 51

9.18 Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443) 52

9.19 Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519) 53

9.20 Average tariff applied by South Africa for T-shirts, Singlets and other vests of

cotton, knitted (HS 610910) 54

9.21 Average tariff applied by South Africa for T-shirts, Singlets and other vests of

other textile materials, knitted (HS 610990) 55

9.22 Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton,

Knitted (HS 610821) 56

9.23 Average tariff applied by South Africa for Brassieres and parts of Textile materials

(HS 621210) 57

9.24 Average tariff applied by South Africa for Technically Specified Natural Rubber

- TSNR (HS 400122) 58

10. Sri Lanka’s Exports to South Africa in the first two quarters of 2013 59

11. Conclusion 61

v Exploring Opportunities in the South African Market For Sri Lanka’s Exports

LIST OF TABLES

Table 1: Overview of the South African economy 01

Table 2: comparison of Doing Business rank 02

Table 3: Country comparison of South Africa and Sri Lanka in terms of Exports and Imports

Valuation 05

Table 4: Sri Lanka’s share in South African market 06

Table 5: Bilateral trade between Sri Lanka and South Africa 07

Table 6: Products currently exported to South Africa with more opportunity to expand 09

Table 7: Performance of Raw Coconut Fiber (HS 530500) in the South African market 13

Table 8: Performance of Solid tyres (HS 401290) in the South African market 14

Table 9: Performance of Cucumbers and Gherkins (HS 200110) in the South African market 16

Table 10: performance of Lead Monoxide (HS 282410) in the South African market over the

Period under review 17

Table 11: performance of Black Tea- Tea Bags (HS 090230) in the South African market 17

Table 12: performance of Cinnamon (HS 090611) in the South African market 19

Table 13: performance of Black Tea- Bulk (HS 090240) in the South African market 20

Table 14: Performance of Surgical Gloves of Rubber (HS 401511) in the South African market 23

Table 15: comparison of the world unit value with the unit values of the top exporters in

South African market 24

Table 16: performance of Tableware and Kitchenware (HS 691110) in the South African market

over the period under review 25

Table 17: Performance of Woven Fabrics (HS 540710) in the South African market 26

Table 18: performance of Other Gloves of rubber (HS 401519) in the South African market 27

vi Exploring Opportunities in the South African Market For Sri Lanka’s Exports

Table 19: comparison of the world unit value with the unit values of the top nine exporters

in South African market 29

Table 20: Potential exportable products to South African market 31

Table 21: Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber

(HS 530500) 35

Table 22: Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290) 36

Table 23: Average tariff applied by South Africa for Natural rubber in other forms

(HS 400129) 37

Table 24: Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110) 38

Table 25: Average tariff applied by South Africa for Lead Monoxide (HS 282410) 39

Table 26: Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230) 40

Table 27: Average tariff applied by South Africa for Cinnamon (HS 090611) 41

Table 28: Average tariff applied by South Africa for Black Tea- Bulk (HS 090240) 42

Table 29: Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber

(HS 611610) 43

Table 30: Average tariff applied by South Africa for Ornamental Fish 44

Table 31: Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial

handling vehicle (HS 401193) 45

Table 32: Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or

crocheted (HS 610469) 46

Table 33: Average tariff applied by South Africa for Activated Carbon (HS 380210) 47

Table 34: Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511) 48

Table 35: Average tariff applied by South Africa for Women/ Girls Trousers or Breeches

(HS 620469) 49

Table 36: Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110) 50

vii Exploring Opportunities in the South African Market For Sri Lanka’s Exports

Table 37: Average tariff applied by South Africa for Woven Fabrics (HS 540710) 51

Table 38: Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443) 52

Table 39: Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519) 53

Table 40: Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton,

knitted (HS 610910) 54

Table 41: Average tariff applied by South Africa for T-shirts, Singlets and other vests of other

textile materials, knitted (HS 610990) 55

Table 42: Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton,

Knitted (HS 610821) 56

Table 43: Average tariff applied by South Africa for Brassieres and parts of Textile materials

(HS 621210) 57

Table 44: Average tariff applied by South Africa for Technically Specified Natural Rubber –

TSNR (HS 400122) 58

Table 45: Comparison of Sri Lanka’s Exports to South Africa in the first and second quarters

of 2013 with the exports in first and second quarters of 2012 (including the July data) 59

viii Exploring Opportunities in the South African Market For Sri Lanka’s Exports

LIST OF FIGURES

Fig 1.0: Risk Assessment of the South African market 03

Fig. 2.0: Logistic Performance scores of South Africa 04

Fig 3.0: Performance of Sri Lanka’s exports in the South African market 05

Fig 4.0: Exports to world Vs Exports to South Africa by Sri Lanka 06

Fig 5.0: Sri Lanka's Share in the South African Market % 07

Fig 6.0: Bilateral Trade between Sri Lanka and South Africa 08

Fig 7.0 Major Suppliers of Solid Tyres to South Africa in 2012 14

Fig 8.0 Log diagram of the Natural rubber in other forms (HS 400129) 15

Fig 9.0 Major suppliers of Cucumber & Gherkins to South Africa 15

Fig 10.0 Major Suppliers of Lead Monoxide to South Africa in 2012 16

Fig 11.0 Sri Lanka's exports of Black Tea in bulk and Black Tea bags to South Africa 18

Fig.12.0 Actual Vs Potential exports of Cinnamon to South Africa from Sri Lanka 19

Fig 13.0 Log diagram of the actual and potential exports of Knitted Gloves covered with

plastics of rubber 21

Fig 14.0 Log diagram of the actual and potential exports of Ornamental Fish – Live 21

Fig 15.0 Log diagram of the actual and potential exports of Pneumatic Tires of Rubber 22

Fig 16.0 Exports performance of Women/ Girls Suits of other textiles knitted or crocheted in

South African market 22

Fig 17.0 Log diagram of the actual and potential exports of Activated Carbon 23

Fig 18.0 Comparison of prices received by top ten exporting countries for Woven Fabrics in

South Africa 26

ix Exploring Opportunities in the South African Market For Sri Lanka’s Exports

Fig 19.0 Exports performance of Dresses of Synthetic rubber (HS 620443) in South African market 27

Fig 20.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of

cotton, knitted 28

Fig 21.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of other

textile materials, knitted 28

Fig 22.0 Log diagram of the actual and potential exports of Women/Girls Panties and Briefs Cotton,

Knitted 29

Fig 23.0 Log diagram of the actual and potential exports of Brassieres (HS 621210) 30

Fig 24.0 Log diagram of the actual and potential exports of Technically Specified Natural Rubber

- TSNR 30

Fig 25.0 Total Imports of Rubber tires for buses or lorries to South Africa 32

Fig 26.0 Total Imports of Wheels including parts and accessories for motor vehicles to

South Africa 32

Fig 27.0 Total Imports of Tiles, cubes and glazed ceramics to South Africa 33

Fig 28.0 Total Imports of Cuttle fish and squid to South Africa 33

Fig 29.0 Total Imports of Rubber tire for motor car to South Africa 34

Fig 30.0 Total Imports of Footwear-outer soles of rubber or plastics 34

x Exploring Opportunities in the South African Market For Sri Lanka’s Exports

EXECUTIVE SUMMARY

It has been brought in to focus that our export markets are not sufficiently diversified to minimize the

dependency on a few large exports markets; where at present EU and USA together absorb more than

50% of the country’s total exports. This analysis was carried out to fulfill the main objective of

identifying South Africa as a potential export destination for Sri Lanka. Considering the inadequacy of

research work done in this area, the Policy and Strategic Planning Division felt it necessary to fill this gap

by identifying products with considerable potential to cater to the South African market. A major

objective of the EDB is to increase exports to markets other than EU and USA by over 50% by 2015,

while consolidating the market position in the EU and USA. Therefore this study was carried out to fulfill

the main objective of exploring opportunities in the South African market for Sri Lankan exports. It is

believed that this effort would be useful to all the divisions to plan their future proceedings.

The key findings of this research work are summarized below.

During the year 2013, South Africa’s rank has been elevated from 41st to 39th rank in the Ease of

Doing Business index published by the World Bank. Furthermore, according to the ONDD (Office

National Du Ducroire) which is a world recognized organization which helps exporters, companies

investing abroad and banks to succeed and grow, by managing risks and insuring overseas

transactions, the risk of doing businesses with South Africa is much low in terms of the factors such

as Political Risk, Commercial Risk, War Risk, Risk of Government Action and Transfer Risk.

The logistics performance (LPI) of South Africa is favorable and acceptable for Sri Lanka to trade

businesses with South Africa. The logistics performance (LPI) is the weighted average of the country

scores on six key dimensions, which is explained in the report in detail.

Sri Lankan exports to South Africa were increasing continuously over the selected time period. Our

exports revenue from South Africa did not change during 2009 even though the world financial crisis

prevailed during the same year.

Sri Lanka caters for a small share in the South African market. Sri Lanka’s share in the South African

market has been increased after 2008 and thereafter Sri Lanka managed to retain that share in the

South African market.

During 2012, Sri Lanka had a trade surplus of US $ 3 million with South Africa.

25 major products currently exported to South Africa have more opportunity to expand and further 6

products have been identified as potential exportable products which are not currently exported to

South Africa by Sri Lanka. However Sri Lanka exports of those potential products which are exported

to other countries and are in high demand in South Africa as well.

xi Exploring Opportunities in the South African Market For Sri Lanka’s Exports

For example, out of all the products exported to South Africa, Black Tea in bulk generates high export

revenue to Sri Lanka in the South African market. But it attracts a unit value of only US $ 3,676 per

tonne where as value added product of Black Tea which in the form of tea bags are paid a unit value of

US $ 19,077 per tonne. Also the average unit value of Black Tea bags has been increasing by 14%

where as the average unit value of Black Tea in bulk has been increasing by a relatively lower rate of

6% in the South African market during the period under review. Therefore it is recommended that Sri

Lanka should increase its exports of value added Black tea to South Africa and reduce exports of Black

Tea in bulk.

Sri Lanka is the 2nd largest supplier of Cinnamon to South Africa with a market share of 16% in 2012,

Sri Lanka exported US $ 99,220 worth of cinnamon to South Africa. Sri Lankan cinnamon attracts a

premium unit value of US $ 13,778 per tonne where as the average unit value of cinnamon is US $

1,565 in the South African market.

Sri Lanka is the largest supplier of solid tyres to the South African market. We have a market share of

34% and Sri Lanka, India, China and France together dominates the South African market by having a

combined market share of 80% for this product.

For products such as Surgical Gloves of Rubber (HS 401511), Gloves of Vulcanized rubber (HS 401519)

and for some textile products, Sri Lanka receives a premium unit value and caters for niche markets in

South Africa. Therefore it is recommended that Sri Lanka should increase its exports of these products

and capture a higher market share of this niche market.

Sri Lanka is the market leader for Raw Coconut Fiber (HS 530500) in the South African market. Sri

Lanka dominates the market for Raw Coconut Fiber by having a market share of 58.58%. The unit

value we receive is almost similar to the average unit value registered in the South African market.

However countries such as China, Brazil and Kenya receive a high unit value for this product category.

Therefore it is recommended that while continuing to cater to the mass market, Sri Lanka should focus

on to cater for the niche markets existing in the South Africa through the process of value addition.

For Woven Fabrics (HS 540710) the average unit value is US $ 8,663 per tonne. But Sri Lanka receives

a premium unit value of US $ 56,500 which is the highest unit value received by any country exporting

this product to South Africa. This stress the fact that our Woven Fabric is well accepted as a high

quality product and it might be catering for a niche market. There for Sri Lanka should increase its

supply of Woven Fabrics to reap the maximum potential export revenue.

The average unit value for Brassieres and parts of Textile materials (HS 621210) is US $ 22,103 per

tonne. But Sri Lanka receives a premium unit value of US $ 70,500 per tonne which is the second

highest price received by any country exporting this product to South Africa. There for Sri Lanka

should increase its supply of it to generate the maximum potential export revenue.

xii Exploring Opportunities in the South African Market For Sri Lanka’s Exports

Sri Lanka is the 2nd largest supplier of Lead Monoxide (HS 282410) and holds a market share of 16% in

the South African market. The average unit value for this product category is US $ 2528 per tone and

Sri Lanka receives an average unit value of US $ 2571 per tone. The export value of this product to

South Africa from Sri Lanka was growing as at rate of 15% during the period of 2008 to 2012.

For textile products, Sri Lanka faces a very high tariff rate of 45% and that industry is highly protected

by South Africa. Therefore it is recommended that Sri Lanka should try to start discussing the

possibilities of getting a preferential access to South African market.

1 Exploring Opportunities in the South African Market For Sri Lanka’s Exports

1. SIGNIFICANCE OF THE STUDY South Africa is considered as one of the rapid growing markets in the present world. It is also a

member of the BRICS group. It is a known fact that our exports are very much dependant on

European and USA markets. The problems currently existing in these markets have a direct negative

impact on our exports and on the economic growth of Sri Lanka as exports contribute nearly 17% to

the country’s GDP. Therefore in order to diversify our exports markets, it is necessary to carry out

market research on new markets that are performing well in the current world.

2. OBJECTIVE OF THE STUDY Lack of diversity in our export markets is a major concern, and the turmoil in these regions have

restricted our capacity to expand our exports owing to the high dependency on these markets, where

at present EU and USA together absorb more than 50% of the country’s total exports. A major

objective of the EDB is to increase exports to markets other than EU and USA by over 50% by 2015,

while consolidating the market position in the EU and USA. Therefore this study was carried out to

fulfill the main objective of exploring opportunities in the South African market for Sri Lankan

exports. An attempt has been made to identify potential products, the main barriers for the Sri

Lankan exporters, a detailed analysis about the prevailing tariff rates, etc. in South Africa.

3. OVERVIEW OF THE SOUTH AFRICAN ECONOMY

Table 1: Overview of the South African economy

Sources: World Bank Data & CIA fact book

Name

Republic of South Africa

Land Area 1,221,037 km2

Population (2011)

51,770,560

Language

Eleven languages are used in South Arica. English is commonly used in Business, Politics and Media.

Currency

Rand (ZAR)

Exchange Rate (June 2013) US$ 1.00 = ZAR 9.77

Per Capita GDP –PPP current (2012) US$ 11,440

Trade (2012)

Exports – $101.2 billion (2012 est.) Imports – $106.8 billion (2012 est.) Balance – US$ -5.6 billion Total Trade – US$ 208 billion

Reserves of foreign exchange and gold $54.98 billion (31 December 2012 est.)

Stock of direct foreign investment - at home $162.9 billion (31 December 2012 est.)

Inflation ( 2012) 5.4%

GDP - real growth rate 2.5 % (2012 )


3.1. Business environment in the South African market

South Africa belongs to the region of Sub- Saharan Africa and it is categorized as an upper middle

income country with a GDP per capita of US$ 7,951.139 (in 2011). The following table compares the

data for “Doing Business “in 2013 for South Africa and for Sri Lanka among 185 countries in the

world. These data has been taken from the World Bank’s Doing Businesses index which provides

objective measures of business regulations and their enforcement across 185 economies.

Table 2: comparison of Doing Business rank

Country Doing business 2013 Rank

Doing business 2012 Rank

Change in Rank

South Africa

39

41

2

Sri Lanka

81

96

15

Source: http://www.doingbusiness.org

The above data suggests that South Africa is ranked as 39th among 185 countries according to the

ease of doing business. During the year of 2013, South Africa’s rank has been lifted from 41st to 39th.

Doing Business rank of Sri Lanka has also been lifted to 81st in 2013 from 96th in 2012.

http://www.doingbusiness.org/


3.2. Risk Assessment of the South African market

The following risk assessment was done using the ONDD (Office national du ducroire) statistics which

is one of the reliable sources of risk assessment data. According to the ONDD statistics the following

figure shows that the risk of doing businesses with South Africa is much low in terms of the

categories such as Political Risk, Commercial Risk, War Risk, Risk of Government Action and Transfer

Risk.

Fig 1.0 Risk Assessment of the South African market

According to Coface, which is another world recognized organization of obtaining country risk

assessment data; South Africa is considered as an A3 country, suggesting that the country risk is low

and acceptable for doing businesses.

Risk

increases

from 1 to 7

A - Low commercial risk B - Normal commercial risk C - High risk commercial risk

http://www.ondd.be/WebONDD/Website.nsf/weben/Documentation_Lexicon?OpenDocument#NT0000408E




3.3. Logistic Performance of South Africa

The logistics performance (LPI) is the weighted average of the country scores on six key dimensions. Each dimension is given a scale from 1 to 5, where 1 represents poor and 5 represents a high performance.

Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs

Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology)

Ease of arranging competitively priced shipments

Competence and quality of logistics services (e.g., transport operators, customs brokers)

Ability to track and trace consignments

Timeliness of shipments in reaching destination within the scheduled or expected delivery time.

The following diagram shows the logistic performance of the South Africa in 2012. It shows that for the selected six dimensions, South Africa’s performance lies between 5 and 3, which suggests that South Africa is performing well in terms of the key dimensions mentioned above.

Fig. 2.0 Logistic Performance scores of South Africa

1

2

3

4

5LPI

Customs

Infrastructure

InternationalShipments

LogisticCompeetence

Tracking & Tracing

Timeliness


4. COUNTRY COMPARISON OF SOUTH AFRICA AND SRI LANKA IN

TERMS OF EXPORTS AND IMPORTS VALUATION

The following table compares the valuation method of exports and imports between South Africa and

Sri Lanka based on 2011 data.

Table 3: Country comparison of South Africa and Sri Lanka in terms of Exports and Imports valuation

Country Valuation of Exports Valuation of Imports

Sri Lanka FOB CIF

South Africa FOB CIF

Source: http://comtrade.un.org

5. PERFORMANCE OF SRI LANKA’S EXPORTS TO THE SOUTH AFRICAN

MARKET The following diagram shows that during the period 2008 to 2012, exports to South Africa from Sri Lanka

has been increased by a rate of 17%. The trends of Sri Lankan exports to South Africa were increasing

over the selected time period. Furthermore our exports to South Africa haven’t got affected during 2009

even though the world financial crisis was prevailing during the same year. From 2009 to 2011, our

exports have been increased by US $14 million which is an 88% increase in export revenue.

Source: Sri Lanka Customs

16 16

20

30

26

0

5

10

15

20

25

30

35

2008 2009 2010 2011 2012

US

$ M

illio

n

Year

Fig 3.0 Performance of Sri Lanka’s exports in the South African market

http://comtrade.un.org/


5.1. Exports to world Vs Exports to South Africa by Sri Lanka

Following log diagram compares Sri Lanka’s exports to the world and exports to South Africa from Sri

Lanka. It can be noticed that our exports to South Africa was growing continuously irrespective to the

decline in 2012 while our exports to world shows a mixed growth pattern which is almost stagnated.


5.2. Sri Lanka’s share in South African market

The following table illustrates Sri Lanka’s share in the South African market and for each year from

2008 to 2012. It should be noticed that Sri Lanka caters only for a small share in the South African

market.

Table 4: Sri Lanka’s share in South African market

2008 2009 2010 2011 2012 Avg. Annual Rate of Growth

Total size of the South Africa import market US$ millions

87,593 63,766 80,139 99,726 101,611 7.4%

Sri Lanka exports to South Africa US$ millions – CIF terms

16 16 20 30 26 16%

Sri Lanka’s share in South Africa market 0.0183% 0.0251% 0.0250% 0.0301% 0.0256%

-

8,175 7,122 8,409 10,017 9,260

16 16 20 30 26

1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

Fig 4.0 Exports to world Vs Exports to South Africa by Sri Lanka

Exports to World

Exports to South Africa


The following diagram graphically illustrates Sri Lanka's Share in the South African Market. It shows

that the Sri Lanka’s market share is growing and shows an increasing trend in the South African

market.

Source: Sri Lanka Customs and ITC data

6. BILATERAL TRADE BETWEEN SRI LANKA AND SOUTH AFRICA

In 2008 and 2009 Sri Lanka registered a trade deficit of US $8 million and US $2 million with South

Africa respectively. However during 2011, Sri Lanka had a trade surplus of US $ 2 million. Thereafter

in 2011 a further trade deficit of US $ 6 million was registered in the South African market. During

2012, the trade balance turned in Sri Lanka’s favour registering a trade surplus of US $ 3 million

which is illustrated in the following table.

Table 5: Bilateral trade between Sri Lanka and South Africa

2008 2009 2010 2011 2012

Exports to South Africa 16 16 20 30 26

Imports from South Africa 24 18 18 36 23

Total Trade 40 38 38 66 49

Balance of Trade -8 -2 2 -6 3 Source: Sri Lanka Customs

0.00%

0.01%

0.01%

0.02%

0.02%

0.03%

0.03%

0.04%

2008 2009 2010 2011 2012

Mar

ket

shar

e %

Years

Fig 5.0 Sri Lanka's Share in the South African Market %

Trend Line

Actual Share


Following diagram shows the pattern of trade (imports & exports) between Sri Lanka and South

Africa.


0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012

US

$ M

illio

ns

Years

Fig 6.0 Bilateral Trade between Sri Lanka and South Africa

Exports to South Africa

Imports from South Africa

Trade Surplus of US $3 Million


7. PRODUCTS CURRENTLY EXPORTED TO SOUTH AFRICA WITH MORE

OPPORTUNITY TO EXPAND

Following table summarizes the position of some selected Sri Lankan products which are currently

exported to South African market. These products are selected since they have more opportunity for

expansion in the South African market.

Table 6: Products currently exported to South Africa with more opportunity to expand

Product

Total Imports to

South Africa (US$ ‘000)

Exports by Sri Lanka to South Africa (US$ ‘000)

% Contribution Of Sri Lanka

Sri Lanka’s Rank among the competing countries

Top ten competitors

Coconut ,Abaca, Ramie and other Fiber (HS 530500)

2,244

1,314.52

58.58%

1

Brazil , India , China, Philippines ,USA, Kenya, Mozambique, Bangladesh , Israel, Ireland

Solid or Cushioned tyres (HS 401290)

16,157

5,386.60

33.34%

1

India , China , France , Germany, Italy , Brazil , Republic of Korea, Thailand, Netherlands, Malaysia

Natural rubber in other forms (HS 400129)

8,602

2,006.93

23.33%

2

Malawi , China, India , United Kingdom , USA, Chinese Taipei , Italy , Spain, Sweden , Brazil

Cucumber and Gherkins (HS 200110)

1,526

286.50

18.77%

2

Germany , Hungary, India , Viet Nam , Belgium, China , Spain, France, Netherlands , Poland

Lead Monoxide (HS 282410)

1,514

241.88

15.98%

2

Chinese Taipei, Australia , China, France , USA, Belgium , Brazil, Germany , Indonesia, Malaysia


Product Total Imports to




Sri Lanka’s Rank

among the competing countries

Top ten competitors

Black Tea- Tea Bags HS 090230

1,464

230.13

15.72%

3

Netherlands , United Kingdom, Poland , India , China , Zimbabwe, Singapore , United, Arab Emirates, Germany , Hungary

Cinnamon HS 090611

651

99.22

15.24%

2

China , Philippines, Singapore, Indonesia, Hong Kong, China , India, Malaysia, Netherlands , Viet Nam , Australia

Black Tea- Bulk HS 090240

46,116

6,768.76

14.68%

2

Malawi , United Republic of Tanzania , Zimbabwe , Kenya, Poland , Area Nes India , USA, Germany , Indonesia

Knitted Gloves covered with plastics of rubber (HS 611610)

9,763

1,250.69

12.81%

2

China , Bangladesh, Pakistan , Malaysia, Germany , Republic of Korea , USA, Hong Kong, China, Portugal ,Indonesia

Ornamental Fish – Live (HS 030110)

2,186

151.37

6.92%

4

Singapore , Israel, Indonesia , Malaysia , Chinese Taipei , Thailand, Kenya , Japan USA, China

New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)

6,639

349.69

5.27%

5

India , China, Romania , France, Czech Republic , USA, Germany, Australia , Mexico, Netherlands






Sri Lanka’s Rank


Top ten competitors

Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)

3,141

136.21

4.34%

19

China , Mauritius, Viet Nam, Cambodia, Bangladesh , Italy, Malaysia , Turkey, Indonesia , Hong Kong, China

Activated Carbon (HS 380210)

19,056

633.81

3.33%

6

India , Philippines, China , Indonesia, Thailand , USA, Germany , Viet Nam , Australia, Belgium

Surgical Gloves (HS 401511)

21,208

618.45

2.92%

4

Malaysia , Thailand, China , India, Indonesia , USA, Austria , France, Italy , United Kingdom

Women/ Girls Trousers or Breeches (HS 620469)

7,457

184.71

2.48%

16

China , Bangladesh, Turkey , India , Italy, Viet Nam, Hong Kong, China USA, France , Spain

Tableware and Kitchenware (HS 691110)

27,716

343.64

1.24%

2

China , Germany Indonesia , Hong Kong, China , United Kingdom, Thailand , Portugal, India , France , Italy

Woven Fabrics (HS 540710)

8,169

97.25

1.19%

7

USA, Chinese Taipei, China, Republic of Korea, Germany , Italy, Indonesia , United Kingdom , Thailand, Netherlands

Dresses of Synthetic rubber (HS 620443)

13,387

105.45

0.79%

21

China , India , Spain USA, Turkey , United Kingdom, France , Viet Nam, Italy , Morocco






Sri Lanka’s Rank


Top ten competitors

Gloves of Vulcanized rubber (HS 401519)

13,346

78.61

0.59%

9

Malaysia , China, Thailand , US, United Kingdom, Germany , Indonesia , Chinese Taipei ,India , France

T-shirts, Singlets and other vests of cotton, knitted (HS 610910)

115,773

632.18

0.55%

13

Mauritius , China, Madagascar , India, Bangladesh , Turkey , Tanzania, USA, Portugal, Thailand

T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)

56,356

218.01

0.39%

10

China , Mauritius, Indonesia , Thailand , Turkey, Bangladesh , India, Viet Nam, Philippines, Cambodia

Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)

14,762

52.78

0.36%

4

China , India, Bangladesh, Mauritius , USA, Indonesia , Spain, Cambodia , Malaysia , Portugal

Brassieres and parts of Textile materials (HS 621210)

39,830

139.88

0.35%

4

China , Viet Nam, France ,Netherlands, Philippines, Thailand , Hong Kong, China, Slovakia USA, Germany

Technically Specified Natural Rubber - TSNR (HS 400122)

157,115

353.55

0.23%

15

Indonesia , Malaysia , Singapore , Nigeria, Côte d'Ivoire, Philippines, Thailand , Viet Nam, Guinea, Liberia

Source: Sri Lanka Customs and ITC


7.1 Product wise analysis of selected export items

A more detailed analysis of products mentioned under section 11.0 is given below.

7.1.1 Coconut ,Abaca, Ramie and other Fiber (HS 530500)

Sri Lanka is the market leader for this product in the South African market. Sri Lanka dominates

the market for this product category by having a market share of 58.58%. The price we receive is

almost similar to the average market price registered in the South African market. However

countries such as China, Brazil and Kenya receive a high price for this product category.

Therefore it is recommended that while continuing to cater to the mass market, Sri Lanka

should focus on catering for the niche markets existing in the South Africa through the process

of value addition.

Following table illustrates the export performance of Sri Lanka for this product in the South

African market during the selected time period.

Table 7: Performance of Raw Coconut Fiber (HS 530500) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

1,304 1,123 1,792 1,989 2,244 16.5

Exports by Sri

Lanka to South

Africa(US$ ‘000)

860

655

832

1,021

1,315 12.9

Sri Lanka’s share 65.95% 58.33% 46.43% 51.33% 58.60% -

Source: Sri Lanka Customs and ITC Data base


7.1.2 Solid or Cushioned tyres (HS 401290)

Sri Lanka is the largest supplier of solid tyres to the South African market. We have a market

share of 33.34% and as shown below Sri Lanka, India, China and France together dominates the

South African market by having an 80% market share for this product.

Source: Source: Sri Lanka Customs and ITC Data base

The average price of Solid Tyres in the South African market is US $ 3,297 per tone but Solid

Tyres produced by Sri Lanka receives an average price of US $ 3,393 which is well above the

average market price.

Following table illustrates the export performance of Sri Lanka in the South African market

during the selected time period.

Table 8: Performance of Solid tyres (HS 401290) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

8,580 8,160 11,951 15,853 16,157 19.3

Exports by Sri

Lanka to South

Africa(US$ ‘000)

3,078

3,153

4,359

6,810

5,387 18.8

Sri Lanka’s share 35.87% 38.64% 36.47% 42.96% 33.34% -


Sri Lanka 33.3%

India 18%

China 14%

France 13%

Others 20%

Fig 7.0 Major Suppliers of Solid Tyres to South Africa in 2012


7.1.3 Natural rubber in other forms (HS 400129)

Sri Lanka is the 2nd largest supplier of this product in the South African market. The average unit

value for this product category is US $ 3,376 per tonne. But Sri Lanka receives a unit value of US

$ 5,505 per tonne which is well above the average unit value registered in South African market.

This stresses the fact that our exports of this product are well accepted as a quality product and

we might be catering for the needs of a niche market. Therefore Sri Lanka should increase its

supply of it to generate the maximum potential export revenue. The diagram below compares

the actual and potential exports of this product to South African market by Sri Lanka.


7.1.4 Cucumbers and Gherkins (HS 200110)

Sri Lanka is the 2nd largest supplier of this product category to South African market and has a

market share of 19% in the South African market. As shown below Germany, Sri Lanka and

Hungary together dominates the South African market by having over 80% market share for

this product.

Source: Source: Sri Lanka Customs and ITC Data base

1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 8.0 Log diagram of the Natural rubber in other forms (HS 400129)

Export Potential for SriLanka

Actual Exports of SriLanka

Germany

Sri Lanka

Hungary

Others

Fig 9.0 Major suppliers of Cucumber & Gherkins to South Africa



during the selected time period. One of the main reasons for the decline in the Sri Lanka’s

market share is the arrival of India, Viet Nam and Belgium as exporters of Cucumbers and

Gherkins to the South African market.

Table 9: Performance of Cucumbers and Gherkins (HS 200110) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

721 736 803 1,254 1,526 20.3

Exports by Sri

Lanka to South

Africa(US$ ‘000)

214

336

299

330

287 5.6

Sri Lanka’s share 29.68% 45.65% 37.24% 26.32% 18.81% -


7.1.5 Lead Monoxide (HS 282410)

Sri Lanka is the 2nd largest supplier of Lead Monoxide (HS 282410) and holds a market share of 16% in the South African market. The average unit value for this product category is US $ 2528 per tone and Sri Lanka receives an average unit value of US $ 2571 per tone. The export value of this product to South Africa from Sri Lanka was growing as at rate of 79.2% during the period of 2008 to 2012.


Fig 10.0 Major Suppliers of Lead Monoxide to South Africa in 2012

Thaipai 62.3%

Sri Lanka 16%

Australia 12.4%

China 4.9% Others


Following table compares the performance of this product in the South African market over the

period under review.

Table 10: performance of Lead Monoxide (HS 282410) in the South African market over the

period under review

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to South

Africa (US$ ‘000) 1,313 752 1,256 1,402 1,514

9

Exports by Sri Lanka to

South Africa(US$ ‘000) -

20 105 165 242 79.3

Sri Lanka’s share 0.00% 2.66% 8.36% 11.77% 15.98% -


7.1.6 Black Tea- Tea Bags (HS 090230)

Sri Lanka is the 3rd largest exporter of the above mentioned product to the South African market

and had a market share of 16% in 2012 in the South African market. Total imports of the Black

Tea bags to South African market were declining during the period under review. Sri Lankan

exporters have concentrated more in exporting Black Tea in Bulk than exporting value added

Black Tea.

The following table illustrates the performance of Sri Lanka’s Black Tea bags in the South African

market.

Table 11: performance of Black Tea- Tea Bags (HS 090230) in the South African market

2008 2009 2010 2011 2012 Avg. growth

rate 2008-2012

(%)

Total imports to South Africa (US$ ‘000)

697 792 1,134 1,845 1,464 23.3%


South Africa(US$ ‘000)

463 619 566 224 230 -24%

Sri Lanka’s share 66.43% 78.16% 49.91% 12.14% 15.71% -



The average price for the product in South Africa is US $ 9695 per tonne. However Sri Lankan

Black tea in the form of tea bags is offered a unit price of US $ 19,077 per tonne which is twice

as high as the average market price in South Africa. Furthermore the average price of the

product has increased by 14% in the South African market during the period under review.

Therefore it can be concluded that our Black Tea in the form of tea bags are paid a premium

price in the South African market and that price is also increasing over time as well.

Key findings: As an individual product, Black Tea in bulk generates a high export revenue to Sri

Lanka in the South African market. But it is paid a unit price of US $ 3,676 per tonne where as

value added products of Black Tea which is in the form of tea bags are paid a unit price of US $

19,077 per tonne. Also the average price of Black Tea bags has been increasing by 14% where as

the average price of Black Tea in bulk has been increased by a relatively lower rate of 6% in the

South African market during the period under review. Therefore it is recommended that Sri

Lanka should attempt to increase its exports of value added Black tea to South Africa and reduce

exports of Black Tea in bulk. The following figure compares the Sri Lanka's exports of Black Tea

in bulk and Black Tea bags to South African market.


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 11.0 Sri Lanka's exports of Black Tea in bulk and Black Tea bags to South Africa

Exports of Black TeaBulk

Exports of Black TeaBag


7.1.7 Cinnamon (HS 090611)

Sri Lanka is the 2nd largest supplier of this product to South Africa registering a market share of

16% in the South African market in 2012. Sri Lanka exported US $ 99,220 worth of cinnamon to

South Africa. Sri Lankan cinnamon is paid a premium price of US $ 13,778 per tone where as the

average price of cinnamon is US $ 1,565 in the South African market.

Following table illustrates the export performance of Sri Lankan Cinnamon in the South African

market during the selected time period.

Table 12: performance of Cinnamon (HS 090611) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

505 343 399 548 651 9.7

Exports by Sri

Lanka to South

Africa(US$ ‘000)

62 - 2 62 99

50.6

Sri Lanka’s share 12.28% 0.00% 0.50% 11.31% 15.21% -


Following diagram shows that the potential export of cinnamon to South Africa from Sri Lanka is

very high and the gap between actual and potential is getting widened. Therefore Sri Lanka

should focus on increasing exports of cinnamon to South African market.


0

100

200

300

400

500

600

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig.12.0 Actual Vs Potential exports of Cinnamon to South Africa from Sri Lanka

Actual Exports

Potential Exports


7.1.8 Black Tea- Bulk (HS 090240)

Among all the products exported by Sri Lanka to South Africa, Black Tea earns the highest

revenue and in 2012 Sri Lanka has exported US $ 6.8 million worth of Black tea in bulk to South

Africa. Sri Lanka is the 2nd largest exporter of the above mentioned product to the South African

market

Table 13: performance of Black Tea- Bulk (HS 090240) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

26,248 38,400 44,506 40,547 46,116 11.8

Exports by Sri

Lanka to South

Africa(US$ ‘000)

1,673 2,830 4,248 5,460 6,769

34.5

Sri Lanka’s share 6.37% 7.37% 9.54% 13.47% 14.68% -


7.1.9 Knitted Gloves covered with plastics of rubber (HS 611610)

Sri Lanka is the 2nd largest supplier of this product category and we have captured a 13% market

share in the South African market in 2012 .The unit value by Sri Lanka is US $ 24,783 per tonne

on average which is well above the average market price of US $ 6,994 per tonne. Sri Lanka’s

exports of this product in terms of value were growing at a rate of 34.5 % from 2008 to 2012 in

the South African market. This suggests that Sri Lanka is capable of increasing its market share in

the future. The high price received by Sri Lanka for this product highlights the fact that we are

obtaining a premium price may be for the quality and the reliability of the product. Therefore it

is recommended that Sri Lanka should increase its exports of the product and capture a higher

market share in the South African market.

The diagram below compares the actual and potential exports of this product to South African

market by Sri Lanka.



7.1.10 Ornamental Fish – Live (HS 030110)

Sri Lanka is the 4th largest supplier of Live Ornamental fish to South Africa and holds a market

share of 7% in the South African market. The average unit value for Sri Lanka’s exports of this

product category has been increasing by 13% during the selected time period. The log diagram

below compares the actual and potential exports of this product to South African market by Sri

Lanka.


7.1.11 New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)

Sri Lanka is the 5th largest supplier of this product category and currently holds a market share of

5.2% in the South African market. The average unit value received by Sri Lanka for this product

category is US $ 196 per unit which is above the average unit value of US $ 188 per unit for this

product category in the South African market. Furthermore Sri Lanka’s exports of this product in

value were growing at a rate of 31 % from 2011 to 2012 in the South African market. The log

diagram below compares the actual and potential exports of this product to South African

market by Sri Lanka.

1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 13.0 Log diagram of the actual and potential exports of

Knitted Gloves covered with plastics of rubber

Export Potential forSri Lanka

Actual Exports ofSri Lanka

1

10

100

1,000

10,000

2008 2009 2010 2011

US

$ T

ho

usa

nd

s

Years

Fig 14.0 Log diagram of the actual and potential exports of Ornamental Fish – Live





7.1.12 Women/ Girls Suits of other textiles knitted or crocheted (HS 610469)

The unit value received by Sri Lanka for this product is US $ 8.82 per unit on average which is

well above the average unit value of US $ 1.79 per unit. According to Sri Lanka customs our

exports of this product in value were growing at a rate of 63.1 % from 2008 to 2012 in the South

African market.

The diagram below compares export performance of Women/ Girls Suits of other textiles

knitted or crocheted in South African market


1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 15.0 Log diagram of the actual and potential exports of Pneumatic Tires of Rubber



28 22 40

278

185

0

50

100

150

200

250

300

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Fig 16.0 Export performance of Women/ Girls Suits of other textiles knitted or crocheted in South African market

Trend Line


7.1.13 Activated Carbon (HS 380210)

Sri Lanka is the 6th major supplier of this product and holds a market share of 3.33 % in the

South African market. Furthermore Sri Lanka’s exports of this product in value were growing at a

rate of 208% from 2011 to 2012 in the South African market. The average unit value received by

Sri Lanka has been increasing by nearly 23% during the selected time period. The log diagram

below compares the actual and potential exports of this product to South African market by Sri

Lanka.


7.1.14 Surgical Gloves (HS 401511)

Sri Lanka’s export share of this product has increased from 0.53% to 2.91% during the period

under reviewed. Following table illustrates the export performance of Sri Lanka in the South

African market during the selected time period.

Table 14: Performance of Surgical Gloves of Rubber (HS 401511) in the South African market

2008 2009 2010 2011 2012 Avg. growth

rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

10,825 10,663 15,891 20,049 21,208 19.7

Exports by Sri

Lanka to South

Africa(US$ ‘000)

57 376 378 785 618

55

Sri Lanka’s share 0.53% 3.53% 2.38% 3.92% 2.91% -


1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 17.0 Log diagram of the actual and potential exports of Activated Carbon




Following table compares the performance of the top four suppliers of this product to the South

African market. It is noteworthy that even though Malaysia, Thailand and China are the market

leaders for the product category; all of them receive a price below the average market price.

They might be catering to the mass market of this product. The high price received by Sri Lanka

and the market share of 3% for this product highlights the fact that we are catering for a niche

market and obtaining a premium price may be owing to the quality and the reliability of the

product. Therefore it is recommended that Sri Lanka should increase its exports of the product

and capture a higher market share of this niche market.

Rank Country Market share in 2012

Unit Value/ Price Per tone in South

Africa

- World 100.0% US $ 5,988

1 Malaysia 58.9% US $ 5,810

2 Thailand 21.6% US $5,920

3 China 9.5% US $5,342

4 Sri Lanka 3% US $11,218

Source: ITC Data base

7.1.15 Women/ Girls Trousers or Breeches (HS 620469)

The unit value received by Sri Lanka is US $ 9.26 per unit on average in the South African market

which is above the average unit value of US $ 2.18 per unit. Following table compares the

performance of Sri Lanka with some of the major suppliers of this product in the South African

market. It is noteworthy that Sri Lanka is catering for the needs of a niche market like Romania

does where they receive a premium unit value than us. There for we have to think carefully

about the quality factor to increase our exports revenue in the South African market.

Table 15: comparison of the world unit value with the unit values of the top exporters in South

African market

Rank Country Unit Value/ Price Per tonne in South

Africa

- World US $ 2.18

1 China US $ 1.84

2 Bangladesh US $2.36

3 Turkey US $17

16 Sri Lanka US $9.26

17 Romania US $ 43

Source: ITC Data base and Sri Lanka Customs


7.1.16 Tableware and Kitchenware (HS 691110)

Sri Lanka is the 2nd major supplier of this product category to South African market and the

decline in the market share registered in 2009 have been gradually recovering and by 2012 Sri

Lanka managed to capture a market share of 1.24% in the South African market. Sri Lanka

receives a high unit value of US $ 3,513 per tonne compared to the average market value of US $

1,204 per tonne. Sri Lanka’s exports of this product in value were growing at a rate of 16.9 %

from 2008 to 2012 in the South African market.



Table 16: performance of Tableware and Kitchenware (HS 691110) in the South African market

over the period under review

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

21,593 18,863 24,714 25,662 27,716 8

Exports by Sri

Lanka to South

Africa(US$ ‘000)

268 241 270 793 344

16.9

Sri Lanka’s share 1.24% 1.28% 1.09% 3.09% 1.24% -


7.1.17 Woven Fabrics (HS 540710)

Sri Lanka is the 7th largest supplier of Woven Fabrics to the South African market. Sri Lanka’s

export share of this product has gradually been increasing during the period under review. In

2012, Sri Lanka had a market share of 1.19% in the South African market.




Table 17: Performance of Woven Fabrics (HS 540710) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to South

Africa (US$ ‘000) 7,511 6,818 8,003 12,063 8,169

7.3


South Africa(US$ ‘000) - - - 78 97

21.8

Sri Lanka’s share 0.00% 0.00% 0.00% 0.65% 1.19% -


As shown in the diagram below, the average unit value for this product category is US $ 8,663

per tonne. But Sri Lanka receives a premium unit value of US $ 56,500 which is the highest price

received by any country exporting this product to South Africa. This stresses the fact that our

Woven Fabric is well accepted as a high quality product and it might be catering for a niche

market. Therefore Sri Lanka should increase its supply of Woven Fabrics to reap the maximum

potential export revenue.


7.1.18 Dresses of Synthetic rubber (HS 620443)

The unit value received by Sri Lanka is US $ 39 per unit on average which is well above the

average unit value of US $ 4.12 per unit. According to Sri Lanka’s Custom data, Sri Lanka’s

exports of this product in value were growing at a rate of 202% from 2011 to 2012 in the South

African market. The diagram below compares Exports performance of Women/ Girls Suits of

other textiles knitted or crocheted in South African market.

0

50,000

100,000

150,000

200,000

US

$ p

er

ton

e

Fig 18.0 Comparison of prices received by top ten exporting countries for Woven Fabrics in South Africa



7.1.19 Gloves of Vulcanized rubber (HS 401519)

Sri Lanka’s export share of this product has gradually been increasing during the selected time

period. Currently Sri Lanka has a market share of 0.59% in the South African market. The

average price of this product category in the South African market is US $ 6,444 per tone but Sri

Lanka receives a price of US $ 13,556 per tone. The high price received by Sri Lanka and a small

market share for this product highlights the fact that we are catering for a niche market and

obtaining a premium price may be for the quality and the reliability of our product. Therefore it

is recommended that Sri Lanka should increase its exports of the product and capture a higher

market share of this niche market.


during the selected time period.

Table 18: performance of Other Gloves of rubber (HS 401519) in the South African market

2008 2009 2010 2011 2012 Avg. growth rate 2008-2012

(%)

Total imports to

South Africa (US$

‘000)

7,241 8,381 12,273 14,236 13,346 17.5

Exports by Sri

Lanka to South

Africa(US$ ‘000)

101 47 46 73 79

-0.00

Sri Lanka’s share 1.39% 0.56% 0.37% 0.51% 0.59% -


0

20

40

60

80

100

120

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 19.0 Exports performance of Dresses of Synthetic rubber (HS 620443) in South African market


7.1.20 T-shirts, Singlets and other vests of cotton, knitted (HS 610910)

The unit value received by Sri Lanka for this product in the South African market is US $ 3.60 per

unit on average which is above the average unit value of US $ 2.24 per unit in that market. Our

current market share of the product is 0.55% in the South African market. The decline in export

revenue of this product in 2009 was gradually recovering since 2009 and Sri Lanka’s exports of

this product in terms of value were growing at a rate of 20.2% from 2009 to 2012 in the South

African market. Following diagram compares the actual and potential exports of this product to

South African market by Sri Lanka.


7.1.21 T-shirts, Singlets and other vests of other textile materials, knitted (HS 610990)

The unit value received by Sri Lanka for this product is US $ 5.71 per unit on average which is

above the average unit value of US $ 2.04 per unit. The current market share of the product is

0.39% in the South African market. Sri Lanka’s exports of this product in value were growing at a

mixed rate during the period under review in the South African market. The diagram below

compares the actual and potential exports of this product to South African market by Sri Lanka.


1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 20.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of cotton, knitted



1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Fig 21.0 Log diagram of the actual and potential exports of T-shirts, Singlets and other vests of other textile materials,

knitted

Export potential forSri Lanka

Actual exports ofSri Lanka


7.1.22 Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)

The unit value received attracted by Sri Lanka for this product in the South African market is US

$ 1.48 per unit on average which is above the average unit value of US $ 0.52 per unit. Our

current market share of the product is 0.36 % in the South African market. The diagram below

compares the actual and potential exports of this product to South African market by Sri Lanka.


7.1.23 Brassieres and parts of Textile materials (HS 621210)

Following table compares the performance of the top nine suppliers of this product to the South

African market. It is noteworthy that the high unit value of US $ 70,500 per tonne received by Sri

Lanka compared to the average unit value of US $ 22,103 per tonne and the market share of

0.35%suggest that we are catering for a niche market and obtaining a premium unit value may

be owing to the quality and the reliability of the product. There for it is recommended that Sri

Lanka should increase its exports of the product and capture a higher market share in this niche

market.

Table 19: comparison of the world unit value with the unit values of the top nine exporters in

South African market (Source ITC )

1

100

10,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 22.0 Log diagram of the actual and potential exports of Women/Girls Panties and Briefs Cotton, Knitted



Rank Country Market share in 2012 Unit Value Per tonne in South Africa

- World 100.0% 22,103

1 China 94.6% 21,669

2 Viet Nam 0.9% 49,571

3 France 0.8% 164,500

4 Sri Lanka 0.4% 70,500

5 Netherlands 0.3% 26,000

6 Philippines 0.3% 59,500

7 Thailand 0.3% 27,250

8 Hong Kong, China 0.3% 21,000

9 Slovakia 0.3% 51,000


The diagram below compares the actual and potential exports of this product to South African market

by Sri Lanka.


7.1.24 Technically Specified Natural Rubber - TSNR (HS 400122)

The average unit value received by Sri Lanka for this product category is US $ 5,143 per tonne

which is above the average unit value of US $ 3,407 per tonne for this product category in the

South African market. Sri Lanka has a market share of 0.23% for this product category in the

South African market. The average price received by Sri Lanka has been increasing by nearly 20%

during the selected time period. The log diagram below compares the actual and potential

exports of this product to South African market by Sri Lanka.


1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 23.0 Log diagram of the actual and potential exports of Brassieres (HS 621210)



1

10

100

1,000

10,000

100,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

s

Years

Fig 24.0 Log diagram of the actual and potential exports of Technically Specified Natural Rubber - TSNR




8. POTENTIAL EXPORTABLE PRODUCTS TO SOUTH AFRICAN MARKET

Following table shows the products which have been identified as potential exportable products to

the South African market. These products are not currently exported to South Africa by Sri Lanka.

However Sri Lanka exports those products to other countries and these products are well in demand

in South Africa as well. These selected products have been showing a positive annual growth in

value of total imports to South Africa during the period under review which is illustrated in the

following table.

Table 20: Potential exportable products to South African market

HS code Products Sri Lanka’s exports to the world (US$) 2012 data

Total imports to South Africa (US$) 2012 data

Annual Growth in value of total imports to South Africa 2008-2012

Tariff Rate applied by South Africa for Sri Lanka

401120

Rubber tyres for buses or lorries

24,152,000 246,643,000 21% 25%

870870

Wheels including parts and accessories for motor vehicles

5,956,000 62,759,000 18% 20%

690890

Tiles, cubes and glazed ceramics

4,510,000 117,237,000 16% 20%

030749

Cuttle fish and squid 4,410,000 20,430,000 14% 0.42%

401110

Rubber tyres for motor car

3,568,000 186,358,000 16% 30%

640299 Footwear-outer soles of rubber or plastics

127,000 353,229,000 13% 30%



Following diagrams shows how the South African total import market for each of these products has

changed over time. The import of these products to South Africa shows an increasing trend over the

selected time period. (Source: ITC Data base)

8.1 Rubber tires for buses or lorries


8.2 Wheels including parts and accessories for motor vehicles


0

50,000

100,000

150,000

200,000

250,000

300,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Years

Fig 25.0 Total Imports of Rubber tires for buses or lorriesto South Africa

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Tears

Fig 26.0 Total Imports of Wheels including parts and accessories for motor vehicles to South Africa


8.3 Tiles, cubes and glazed ceramics


8.4 Cuttle fish and squid


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Years

Fig 27.0 Total Imports of Tiles, cubes and glazed ceramics to South Africa

0

5,000

10,000

15,000

20,000

25,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Years

Fig 28.0 Total Imports of Cuttle fish and squid to South Africa


8.5 Rubber tyre for motor car

8.6 Footwear-outer soles of rubber or plastics


0

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Years

Fig 29.0 Total Imports of Rubber tyre for motor car to South Africa

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2008 2009 2010 2011 2012

US

$ T

ho

usa

nd

Years

Fig 30.0 Total Imports of Footwear-outer soles of rubber or plastics


9. BARRIERS TO TRADE

South Africa belongs to the Southern African Customs Union (SACU). The Southern African Customs

Union (SACU) consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland. These countries

are benefitted from preferential access to South African market with tariff advantages. South Africa

offers preferential tariff advantages to certain European countries as well. Namely: Austria, Belgium,

Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France and Germany. Furthermore

South Africa belongs to the South African Development Community (SADC) Free Trade Area and

which was initiated in 2000 and consist of South Africa, Botswana, Lesotho, Namibia, and Swaziland,

Mauritius, Zimbabwe, Madagascar, Malawi, Mozambique, Tanzania, and Zambia. These countries

are also benefitted by preferential access to South African market with tariff advantages.

Following tables illustrate the import tariff rates applied by South African government for the

selected products (products which are already imported by South Africa from Sri Lanka).

9.1 Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber (HS 530500)

Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for the

main competing countries of Sri Lanka. Applied tariff year is taken as 2012.

Table 21: Average tariff applied by South Africa for Coconut, Abaca, Ramie and other Fiber (HS

530500)

Country

Average tariff applied by South Africa (for HS

530500)

Ranking based on the value of imports by

South Africa

Sri Lanka 0 1

Brazil 0 2

India 0 3

China 0 4

Philippines 0 5

United States of America 0 6

Kenya 0 7

Mozambique 0 8

Bangladesh 0 9

Israel 0 10

Source: ITC Tariff data

http://www.gov.bw/

http://www.lesotho.gov.ls/

http://www.grnnet.gov.na/

http://www.gov.za/

http://www.gov.sz/


9.2 Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290)



Table 22: Average tariff applied by South Africa for Solid or Cushioned tyres (HS 401290)


Country

Average tariff applied by South

Africa (for HS 401290)

Ranking based on the value of imports

by South Africa

Sri Lanka 25 1

India 25 2

China 25 3

France 15 4

Germany 15 5

Italy 15 6

Brazil 25 7

Republic of Korea 25 8

Thailand 25 9

Netherlands 15 10


9.3 Average tariff applied by South Africa for Natural rubber in other forms (HS 400129)



Table 23: Average tariff applied by South Africa for Natural rubber in other forms (HS 400129)


Country




by South Africa

Malawi 0 1

Sri Lanka 0 2

China 0 3

India 0 4

United Kingdom 0 5


Chinese Taipei 0 7

Italy 0 8

Spain 0 9

Sweden 0 10


9.4 Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110)



Table 24: Average tariff applied by South Africa for Cucumbers and Gherkins (HS 200110)


Country



Ranking based on the value of

imports by South Africa

Germany 0 1

Sri Lanka 20 2

Hungary 0 3

India 20 4

Viet Nam 20 5

Belgium 0 6

China 20 7

Spain 0 8

France 0 9

Netherlands 0 10


9.5 Average tariff applied by South Africa for Lead Monoxide (HS 282410)



Table 25: Average tariff applied by South Africa for Lead Monoxide (HS 282410)


Country





Chinese Taipei 0 1

Sri Lanka 0 2

Australia 0 3

China 0 4

France 0 5


Belgium 0 7

Brazil 0 8

Germany 0 9

Indonesia 0 10


9.6 Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230)



Table 26: Average tariff applied by South Africa for Black Tea- Tea Bags (HS 090230)


Country



Ranking based on the value of imports by

South Africa

Netherlands 0 1

United Kingdom 0 2

Sri Lanka 5.1 3

Poland 0 4

India 5.1 5

China 5.1 6

Zimbabwe 0 7

Singapore 5.1 8

UAE 5.1 9

Germany 0 10


9.7 Average tariff applied by South Africa for Cinnamon (HS 090611)



Table 27: Average tariff applied by South Africa for Cinnamon (HS 090611)


Country




by South Africa

China 0 1

Sri Lanka 0 2

Philippines 0 3

Singapore 0 4

Indonesia 0 5

Hong Kong, China 0 6

India 0 7

Malaysia 0 8

Netherlands 0 9

Viet Nam 0 10


9.8 Average tariff applied by South Africa for Black Tea- Bulk (HS 090240)



Table 28: Average tariff applied by South Africa for Black Tea- Bulk (HS 090240)


Country




by South Africa

Malawi 0 1

Sri Lanka 21.2 2

United Republic of Tanzania 0 3

Zimbabwe 0 4

Kenya 21.2 5

Poland 0 6

Area Nes - 7

India 21.2 8

United States of America 21.2 9

Germany 0 10


9.9 Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber

(HS 611610)

Following table summarizes the import tariff rates imposed by South Africa for Sri Lanka and for

the main competing countries of Sri Lanka. Applied tariff year is taken as 2012.

Table 29: Average tariff applied by South Africa for Knitted Gloves covered with plastics of rubber (HS 611610)


Country





China 30 1

Sri Lanka 30 2

Bangladesh 30 3

Pakistan 30 4

Malaysia 30 5

Germany 0 6




Portugal 0 10


9.10 Average tariff applied by South Africa for Ornamental Fish – Live (HS 030110)



Table 30: Average tariff applied by South Africa for Ornamental Fish


Country


Africa



Singapore 0 1

Israel 0 2

Indonesia 0 3

Sri Lanka 0 4

Malaysia 0 5

Chinese Taipei 0 6

Thailand 0 7

Kenya 0 8

Japan 0 9



9.11 Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial handling

vehicle (HS 401193)



Table 31: Average tariff applied by South Africa for New Pneumatic Tires of Rubber of industrial

handling vehicle (HS 401193)


Country




by South Africa

India 20 1

China 20 2

Romania 10 3

France 10 4

Sri Lanka 20 5

Czech Republic 10 6


Germany 10 8

Australia 20 9

Mexico 20 10


9.12 Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or

crocheted (HS 610469)



Table 32: Average tariff applied by South Africa for Women/ Girls Suits of other textiles knitted or

crocheted (HS 610469)


Country





China 45 1

Mauritius 0 2

Viet Nam 45 3

Cambodia 45 4

Bangladesh 45 5

Italy 20 6

Malaysia 45 7

Turkey 45 8

Indonesia 45 9


Sri Lanka 45 19


9.13 Average tariff applied by South Africa for Activated Carbon (HS 380210)



Table 33: Average tariff applied by South Africa for Activated Carbon (HS 380210)


Country





India 0 1

Philippines 0 2

China 0 3

Indonesia 0 4

Thailand 0 5

Sri Lanka 0 6


Germany 0 8

Viet Nam 0 9

Australia 0 10


9.14 Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511)



Table 34: Average tariff applied by South Africa for Surgical Gloves of Rubber (HS 401511)


Country




by South Africa

Malaysia 20 1

Thailand 20 2

China 20 3

Sri Lanka 20 4

India 20 5

Indonesia 20 6


Austria 0 8

France 0 9

Italy 0 10


9.15 Average tariff applied by South Africa for Women/ Girls Trousers or Breeches (HS 620469)



Table 35: Average tariff applied by South Africa for Women/ Girls Trousers or Breeches (HS

620469)


Country




by South Africa

China 45 1

Bangladesh 45 2

Turkey 45 3

India 45 4

Italy 20 5

Viet Nam 45 6



France 20 9

Spain 20 10

Sri Lanka 45 15


9.16 Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110)



Table 36: Average tariff applied by South Africa for Tableware and Kitchenware (HS 691110)


Country





China 30 1

Sri Lanka 30 2

Germany 0 3

Indonesia 30 4


United Kingdom 0 6

Thailand 30 7

Portugal 0 8

India 30 9

France 0 10


9.17 Average tariff applied by South Africa for Woven Fabrics (HS 540710)



Table 37: Average tariff applied by South Africa for Woven Fabrics (HS 540710)


Country






Chinese Taipei 22 2

China 22 3


Germany 10 5

Italy 10 6

Sri Lanka 22 7

Indonesia 22 8

United Kingdom 10 9

Thailand 22 10


9.18 Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443)



Table 38: Average tariff applied by South Africa for Dresses of Synthetic rubber (HS 620443)


Country




by South Africa

China 45 1

India 45 2

Spain 20 3


Turkey 45 5

United Kingdom 20 6

France 20 7

Viet Nam 45 8

Italy 20 9

Morocco 45 10

Sri Lanka 45 21


9.19 Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519)



Table 39: Average tariff applied by South Africa for Gloves of Vulcanized rubber (HS 401519)


Country




by South Africa

Malaysia 15 1

China 15 2

Thailand 15 3


United Kingdom 0 5

Germany 0 6

Indonesia 15 7

Chinese Taipei 15 8

Sri Lanka 15 9

India 15 10


9.20 Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton, knitted

(HS 610910)



Table 40: Average tariff applied by South Africa for T-shirts, Singlets and other vests of cotton,

knitted (HS 610910)


Country




by South Africa

Mauritius 0 1

China 45 2

Madagascar 0 3

India 45 4

Bangladesh 45 5

Turkey 45 6

United Republic of Tanzania 0 7


Portugal 20 9

Thailand 45 10

Sri Lanka 45 13


9.21 Average tariff applied by South Africa for T-shirts, Singlets and other vests of other textile

materials, knitted (HS 610990)



Table 41: Average tariff applied by South Africa for T-shirts, Singlets and other vests of other

textile materials, knitted (HS 610990)


Country





China 45 1

Mauritius 0 2

Indonesia 45 3

Thailand 45 4

Turkey 45 5

Bangladesh 45 6

India 45 7

Viet Nam 45 8

Philippines 45 9

Sri Lanka 45 10


9.22 Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton, Knitted (HS

610821)



Table 42: Average tariff applied by South Africa for Women/Girls Panties and Briefs Cotton, Knitted (HS 610821)


Country




by South Africa

China 45 1

India 45 2

Bangladesh 45 3

Sri Lanka 45 4

Mauritius 0 5


Indonesia 45 7

Spain 20 8

Cambodia 45 9

Malaysia 45 10


9.23 Average tariff applied by South Africa for Brassieres and parts of Textile materials (HS 621210)



Table 43: Average tariff applied by South Africa for Brassieres and parts of Textile materials (HS 621210)


Country




by South Africa

China 45 1

Viet Nam 45 2

France 20 3

Sri Lanka 45 4

Netherlands 20 5

Philippines 45 6

Thailand 45 7


Slovakia 20 9



9.24 Average tariff applied by South Africa for Technically Specified Natural Rubber - TSNR (HS

400122)



Table 44: Average tariff applied by South Africa for Technically Specified Natural Rubber - TSNR

HS 400122)


Country





Indonesia 0 1

Malaysia 0 2

Singapore 0 3

Nigeria 0 4

Côte d'Ivoire 0 5

Philippines 0 6

Thailand 0 7

Viet Nam 0 8

Guinea 0 9

Liberia 0 10

Sri Lanka 0 15


10. SRI LANKA’S EXPORTS TO SOUTH AFRICA IN THE FIRST TWO QUARTERS OF 2013

The Following table compares the performance of major products exported by Sri Lanka to South

African market during the 1st and 2nd quarters of 2012 and 2013.

Table 45: Comparison of Sri Lanka’s Exports to South Africa in the first and second quarters of 2013 with the exports in first and second quarters of 2012 (including the July data)

Product

2012 Jan-July

(US $ Thousands)

2013 Jan-July

(US $ Thousands)

Coconut ,Abaca, Ramie and other Fiber (HS 530500)

854.16

608.27


2,794.90

3,255.49


998.29

1,609.80


151.26

212.92


158.47

205.47


99.51

168.28

Cinnamon HS 090611

32.05

213.05


3,518.04

4,917.10


477.32

576.86


109.66

-

New Pneumatic Tyres of Rubber of industrial handling vehicle (HS 401193)

281.23

107.16


Product

2012 Jan-June

(US $ Thousands)

2013 Jan-June

(US $ Thousands)


73.69

147.18


617.51

197.99


248.44

248.00


44.12

108.05


201.72

118.87

Woven Fabrics (HS 540710)

97.25

-


6.36

5.75


78.61

98.16


206.22

224.35


97.00

206.22


32.40

30.75


105.41

23.22


353.55

40.67

**Note: The above table was developed on the basis of the Sri Lanka’s Customs data available at EDB data base.


11. CONCLUSION

Considering the total import value by South Africa, Sri Lanka stands at the 77th position among all

the countries exporting to South Africa registering a total export of US $ 26 million in 2012. However

Sri Lanka is among the top ten exporting countries for most of the products identified in this

analysis.

Sri Lanka faces the highest tariff rates applied by South Africa for imports. In the case of Textile

products for example, Sri Lanka faces a very high tariff rate of 45% and that industry is highly

protected by South Africa. Therefore it is recommended that Sri Lanka should try to discuss the

possibilities of getting preferential access to South African market for this product.

We should conduct awareness programmes about the Opportunities available in South African Market

to Sri Lankan Exporters and to launch Promotional Campaigns in South Africa.

We should work closely with relevant agencies such as Sri Lanka High Commission in South Africa to

solve the prevailing issues related to exporters and liaise with Ministry of External affairs and

Department of Commerce to examine the possibility of Preferential Trade Agreements with South

Africa.

Major products exported by Sri Lanka to South Africa with potential to further export are :

Coconut ,Abaca, Ramie and other Fiber (HS530500)






Cinnamon HS 090611




New Pneumatic Tires of Rubber of industrial handling vehicle (HS 401193)






Woven Fabrics (HS 540710









This analysis further identifies 6 product categories which are not currently being exported to South

Africa by Sri Lanka, but with potential to grow. These products are given below.

Footwear-outer soles of rubber or plastics (HS 640299)

Cuttle fish and squid (HS 030749)

Tiles, cubes and glazed ceramics (HS 690890) Rubber tyres for buses or Lorries (HS 401120) Wheels including parts and accessories for motor vehicles (HS 870870) Rubber tyres for motor car (HS 401110)

A high demand exists in the South African market for these products. If supply side constrains to export

these products to South Africa market could be overcome, South Africa would be a major market to

generate more foreign exchange to Sri Lanka. Moreover diversifying our products to nontraditional

market such as South Africa will also reduces the dependency of Sri Lankan exports on EU and USA as

well.

It is also suggested that the potential Sri Lankan exporters be identified and be informed about the

opportunities in the South Africa market and also give them possible support to enhance their trade

with South Africa. Supplying detailed information of our exportable products to potential buyers in

South Africa is very important. To successfully reach the target market, launching an efficient

promotional campaign would be highly beneficial. It is also important to forecast demand in the short-

and long- term. Our exporters should also be effectively assisted to compete in a challenging global

marketplace like South Africa and to find the right pricing strategy to attract customers and at the same

time to maximize the sales margin.

Prepared By:

Sanjeewa Udara Rathnasekara - Assistant Director, EDB

Disclaimer:

The Sri Lanka Export Development Board, (EDB), has taken every care in the preparation of the

content of this report, but the EDB cannot be held responsible for any errors, defects, lost profits, or

other consequential damages arising from the use of any information obtained either directly or

indirectly from this report. The EDB accepts no liability whatsoever.

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