Export & Import SA FEBRUARY 2017
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Strap EXPORT & IMPORT SA FEBRUARY 2017 A Strap B EXPORT & IMPORT SA FEBRUARY 2017 Strap Publisher: Johan Meyer Editor Ken Nortje, [email protected] Editor: Johan Meyer, [email protected] Sales manager: Sophia Nel, [email protected] Advertising: Johan Meyer, [email protected] Land of honey and olives Production: Johan Malherbe, Precious Moeng We’ve eventually managed to nail down the North Africa and even Europe, via Algeria’s long awaited feature on Algeria, following well developed transport system and Layout: Patrick Letsoela the recent African Business and strategic partnerships with a host of North Investment Forum held in the historical city African and European countries. of Algiers. Dispatch: Willie Molefe With a pristine Mediterranean coastline of It has taken some doing, but we have, with over 1 300 km in the North, to sites of Circulation/Subscriptions: the help of the Algerian Embassy in South massive historical, cultural, and religious Marius Nel Africa, managed to compile six pages of significance, a large swath of the Sahara [email protected] information on some of the massive desert, large national parks and even snow opportunities available for South African capped mountains, the country ripe for companies in the largest country in Africa, investment in the tourism sector. Subscription rates: as they work tirelessly to diversify their Local R340,00 economy and free themselves from the Africa R370,00 The near perfect seasonal inversion with Overseas R2 050,00 stranglehold South Africa creates massive opportunities of hydrocarbons. for the agricultural sector, especially since Algeria produces most of the same Published: Monthly While Algeria is still one of the largest and produce as South Africa, with a few most important producers and exporters of additions. Although a significant amount of Address: oil and gas in the world, they’ve learned an South African produce is already exported Malnor (Pty) Limited expensive lesson with the steady drop in oil to Algeria, there is not yet much in the way of agricultural imports to South Africa. 10 Judges Avenue, Cresta, 2194 prices since 2002, costing them billions Private Bag X20, every year. Auckland Park, 2006 Opportunities exist in nearly every sector Tel: 011 726 3081 The largely state controlled economy of including mining, renewable energy, infrastructure, the automotive sector, Fax: 011 726 3017 Algeria has now been opened to the private sector in Algeria and new laws have the pharmaceutical sector and the financial sector. been introduced to allow for foreign e-mail: [email protected] investment and partnerships in nearly www.malnormags.co.za every sector in the country, creating Look out for upcoming articles in which we www.exportsa.co.za massive opportunities not only for the local will monitor this process of diversification private sector, but also for South Africa, as and the progress that local business is a preferred business partner, to expand making in terms of exploiting the their reach into Algeria, and into the rest of opportunities available in Algeria. Export & Import Southern Africa is now available online Visit www.exportsa.co.za BEE compliant EXPORT & IMPORT SA FEBRUARY 2017 1 Officially endorsed by Wesgro and contents the Exporters Clubs of South Africa February 2017 Volume 15 Number 2 – Eastern Cape and Western Cape Algeria Focus 10 Algeria: land of opportunities ....................................................................4 – 9 Special Focus India’s new shipping tax explained ..................................................................8 12 Transport & Logistics Only the industry’s proven maturity can save it from lean times ................16 Supply Chain 16 What will 2017 bring to Supply Chains? .......................................................18 Ports & Shipping South Africa lands Africa’s first fully integrated biopharmaceutical plant at 21 Dube TradePort ...............................................................................................22 Acquisition boosts leisure market for Nautic Group ....................................24 Regulars 22 Credit Guarantee Country Profiles Zimbabwe .........................................................................................................12 USA ...................................................................................................................14 2 EXPORT & IMPORT SA FEBRUARY 2017 Strap EXPORT & IMPORT SA FEBRUARY 2017 3 Algeria Focus Algeria: land of opportunities iven its strategic geographic to record robust economic performance of the mining sector, the steel industry, location, its stability, the size and improve its development indicators. mechanical engineering, the agro- of its domestic market, its industry and the renewable energy immense natural resources, sector, which contributed to the creation With a GDP of USD 168 billion in 2016, Gand a qualified, young and competitive of a numer of small and medium Algeria is one of the most important labour force, Algeria today represents enterprises (SMEs). economies on the African continent. one of the most attractive countries in the world for investments. With regard to the service sector, Algeria The economy enjoys a solid financial launched ambitious programmes to position with a balanced budget and develop tourism, logistics and transport, Situated at the centre of North Africa foreign currency reserves that allow ICT, financial and banking services. and the Mediterranean region, Algeria them to cover three years of imports. aims to be a connection hub between The inflation rate is kept as low as At institutional level, a system has been Africa, Europe and the Middle East. It is possible and external debt has been established with entities responsible for the only country that connects the kept to a minimum. investment development, SME Mediterranean area to the heart of promotion and access to land. In Africa through the Trans-Sahara highway, Their continued growth and positive addition to these measures, a guarantee and offers access to seven border performance has put Algeria on the right fund has been established to facilitate markets in neighbouring countries as path, but the need to diversify the SME access to financing and an well as to the European market. economy was identified as a priority investment fund has also been to maintain a sustainable level of established for young entrepreneurs economic growth. and SMEs. With a population of 40 million inhabitants, Algeria remains a big market with a growing interest in To this end, the Algerian government has In its effort to attract foreign investors, products and services, spending more put in place an ambitious strategy Algeria has set up a decentralised ‘one- than USD 50 billion annually on imports. designed to diversify and to boost the stop shop’ which aims to facilitate and The country has a large and young economy. Under the leadership of His simplify the legal procedures for labour force, and enjoys high levels of Excellency President Abdelaziz incorporation of companies and human development. Bouteflika, Algeria, in 2001 launched a implementation of investment projects. vast scheme of national renewal and undertook structural and institutional The country also boasts with a very reforms aimed at laying the foundation The global decrease in the price of oil functional and modern infrastructure, of a new economic system. has emphasised the need to boost including highways, ports, airports and industrial development, further improve highly developed telecommunications. the business climate, and accelerate the In agriculture, government plans have economic reform process in order to revitalised and diversified the sector diversify the economy. The legal Over the past decade, Algeria has through an expansion of cultivated land, framework has been reviewed and been defined by greater political and resulting in strong momentum and the adapted in order to liberalise the economic stability and numerous development of new agricultural areas economy and promote a good climate plans for economic liberalisation and the revival of rural regions. for investment and business. and diversification. The sector was identified as one of the The government has set up new top areas of potential cooperation and investment policies, focused on The active push to open the economy trade with South Africa, due in part to facilitating procedures for the in recent years has resulted in the the fact that the two countries produce establishment of firms, business development of a truly market-oriented many of the same agricultural produce, conduct and investment projects. economy. and in part to the perfect seasonal inversion between South Africa These policies have gone a long way and Algeria. toward simplifying procedures and Algeria’s development model, supported reducing administrative costs, making by significant oil and gas revenues and driven by huge public investments In the sector of industry, encouragement it so much more attractive for foreign programmes, have enabled the country of investment has fostered a resurgence companies to invest in the country. 4 EXPORT & IMPORT SA FEBRUARY 2017 Algeria focus Large projects already underway include Attractive investment opportunities: • Railways: 3973 km of km of railways. infrastructure projects such as • 51.5 billion dollars of imports in 2015 In 2016/2017 horizon, the length of Algeria: land of opportunities highways, airports and ports, refineries, (during