South Africa's export diversification options: the end of the road for traditional export markets?

Abstract

In the face of waning export opportunities for South Africa in its traditional markets in the developed world, this paper examines South Africa's evolving export relationships with countries in the South. Drawing on the concepts of the intensive and extensive margin, a quantitative analysis reveals that the SADC region in particular has become a significant export destination for South Africa over the past two decades, with many new export products attracting a strong following. This points to the need for South Africa's trade policies and strategies to have a strong regional orientation and for export diversification to become a cornerstone of the country's economic growth and development plans into the future.