The evaluation of KwaZulu–Natal's priority agricultural sectors for effective export promotion

Abstract

This study provides the strategies that can be implemented to promote the agricultural sector in KwaZulu-Natal and the theory behind economic development, as well as the importance of trade and export growth. There are restrictions in terms of trade and it is important that these are addressed before making a decision to choose a viable, potential and realistic country to export to. This study is aimed answer the research question if agriculture can be seen as a primary export sector in KwaZulu-Natal. Furthermore, this study includes background on the KwaZulu-Natal Province and mainly focus on the indicators such as GDP, employment, health issues and other indicators that will indicate that this province is of importance in South Africa in terms of the agricultural sector. This study uses SARS data to analyse and calculate the Revealed Comparative Advantage (RCA) of all agricultural products of the province. This is done to identify if there is a comparative advantage in the products studied in this study. The products of KwaZulu-Natal also show that this province's agriculture can be seen as a primary export sector and that this sector is a major contribution to South Africa's GDP and development. This study uses the Decision Support Model (DSM) to compare the results from the Revealed Comparative Advantage to identify the products and sectors which have the most export potential in the international market. This study reveals that the agricultural products and industries in KwaZulu-Natal with the highest overall export potential are chocolate and cocoa preps, refined soybean oil, and leather products as the three top performers among agricultural products and have the most export potential in the province. Concluding remarks are based on the findings made throughout the study.