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Definition

The sale of products produced locally in foreign markets generating an inflow of foreign currency. The value of a country's imports is subtracted from the value of its exports in the trade account to reveal the trade surplus or trade deficit. South Africa typically exports raw materials of various sorts and imports finished products. The one notable exception to this is the motor industry where government subsidies have attracted motor car manufacturers to produce vehicles for export locally. More than half of the cars produced in South Africa are exported. We export agricultural products, base metals and minerals and precious metals. Since the beginning of 2016, the prices of commodities have been rising - which has helped our mining companies to remain profitable even through the COVID-19 crisis. The government has a policy of encouraging beneficiation, but, with the exception of the motor industry, this policy has yet to take hold. The high cost of electricity from Eskom has made many of our smelters unprofitable, costing jobs.

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