An evaluation of competitiveness of South African sugar exports

Abstract

The purpose of this paper was to examine the competitiveness of the South African sugar industry relative to the top ten exporters of the product, namely Brazil, Thailand, Netherlands, Mexico, China, Germany, Canada, France, Belgium and the United States of America. Different techniques were used in the study to ensure that the main objective of the study was achieved. Three popular indices, namely the Balassa Revealed Comparative Advantage (RCA#) Index, the Net Export Index (NXi) and the Relative Revealed Comparative Trade Advantage (RTA) Index were used to compare the competitiveness of the top ten sugar exporting countries including South Africa. The Trade Potential Index was also applied in the study to investigate markets that South Africa could use to increase its exports. Time series data collected on the trade map and the Food and Agricultural Organization of the United Nations were used for the analysis of the markets by using an Excel spreadsheet. The results of the study showed that South Africa has a trade competitive advantage against the majority of the countries considered. South Africa's competitive performance was surpassed by that of Brazil, which was the strongest trader of sugar, followed by Thailand and China. The remaining seven countries (Mexico, Belgium, Netherlands, Canada, Germany, USA and China) were all exceeded by the South African sugar industry. The top potential markets that South Africa could exploit to increase its exports were identified with the use of the Trade Potential Index (TPI). The countries that were identified were selected by calculating the scores, comparing tariffs imposed by these markets to the exporters of sugar and looking at the concentration of the markets that supply these potential markets. The United States of America, Lesotho, Democratic Republic of Congo, Malawi and Egypt were identified as the top five countries that South Africa could exploit for its sugar exports. South Africa has trade agreements with the majority of these countries which assist the country in obtaining preferential agreements when exporting its products to these countries. Recommendations were made that could help the sugar industry to grow its competitiveness.

Inhloso yaleliphepha bekukuhlola kuncintisana kwemboni yashukela yaseNingizimu Afrika nayicatsaniswa nebatfumeli ngaphandle labasembili labalishumi balomkhicito, lekuyiBrazil, iThailand, iNetherlands, iMexico, iChina, iGermany, iCanada, iFrance, iBelgium ne-United States of America. Kusetjentiswa emasu lahlukene kulesifundvo kucinisekisa kutsi inhloso lenkhulu yesifundvo iyaphunyelelwa. Kusetjentiswe ema-indice, lekuyi-Balassa Revealed Comparative Advantage (RCA#) Index, i-Net Export Index (NXi) kanye ne-Relative Revealed Comparative Trade Advantage (RTA) Index kucatsanisa kuncintisana kwalamave lasembili lalishumi lakhicita shukela kufaka ekhatsi eNingizimu Afrika. I-Trade Potential Index nayo isetjentisiwe kulesifundvo kuphenya timakethe letingasetjentiswa yiNingizimu Afrika kute ikhulise kutfumela ngaphandle kwayo lomkhicito washukela. Idatha yeluchungechunge lwesikhatsi legcogcwe kulibalave lekuhwebelana kanye naseNhlanganweni Yekudla Neyetekulima yaMhlab'uhlangene isetjentisiswe kuloluhlatiyo lwetimakethe ngekusebentisa si-spreadsheet se-Excel. Imiphumela yesifundvo ikhombise kwekutsi iNingizimu Afrika inekusitakala ngekuncintisana ekuhwebeni nayicatsaniswa nelinyenti lalamave lamanyenti lahlatiyiwe. Kusebenta kwekuncintisana kweNingizimu Afrika kundlulwe kusebenta kweBrazil, lebeyingumhwebi lomkhulu washukela, ilandzelwe yiThailand kanye neChina. Lamave lasikhombisa lasele (iMexico, iBelgium, iNetherlands, iCanada, iGermany, i-USA neFrance) onkhe andlulwe yimboni yashukela yaseNingizimu Afrika. Timakethe letingaba khona letiphambili leti iNingizimu Afrika ingatisebentisa kukhulisa kutfumela ngaphandle kwayo tibonwe ngekusebentisa iTrade Potential Index (TPI). Emave laboniwe akhetfwe ngekubala imiphumela, kucatsanisa ematharifu lafakwe nguletimakethe kubatfumeli bangaphandle bashukela nekubuka kulokucocana kwetimakethe lephakela letimakethe letingaba khona. I-United States of America, iLesotho, iDemocratic Republic of Congo, iMalawi ne-Egypt abonwe njengemave lasembili lasihlanu langasetjentiswa yiNingizimu Afrika kutfola ngaphandle shukela wayo. INingizimu Afrika inetivumelwano tekuhwebelana nelinyenti lalamave lokusita lelive ekutfoleni tivumelwano tekubekwa ngembili nangabe kutfunyelwa ngaphandle imikhicito yayo kulamave. Tiphakamiso letingasita imboni yashukela kukhulisa kuncintisana kwayo tentiwe.

Inhloso yalo mbhalo wocwaningo kwabe kuwukucubungula nokuhlaziya amandla okuncintisana ngempumelelo kwemboni kashukela yaseNingizimu Afrika uma iqhathaniswa namazwe ayishumi ahamba phambili emhlabeni ekuthumeleni imikhiqizo kashukela emazweni angaphandle, okuyi-Brazil, Thailand, Netherlands, Mexico, China, Germany, Canada, France, Belgium kanye neMelika (USA). Kulolu cwaningo kwasetshenziswa izindlela ezihlukahlukene ngenhloso yokuqinisekisa ukufezekiswa kwenjongo enkulu yocwaningo. Kwasetshenziswa izinkomba-simo ezintathu ezidumile futhi okuyizona ezisetshenziswa kakhulu, okuyi-Balassa Revealed Comparative Advantage (RCA#) Index, Net Export Index (NXi) kanye ne-Relative Revealed Comparative Trade Advantage (RTA) Index ukuqhathanisa amandla okuncintisana ngempumelelo kwamazwe ayishumi ahamba phambili emhlabeni ekuthumeleni ushukela emazweni angaphandle, kubandakanya neNingizimu Afrika. I-Trade Potential Index yasetshenziswa futhi nayo kulolu cwaningo ukuphenya nokucubungula izimakethe ezingasetshenziswa yiNingizimu Afrika ukukhulisa inani lemikhiqizo yayo ethunyelwa emazweni angaphandle. Idatha eqoqwe ochungechungeni lwamaqophelo alandelana ngokwesikhathi ebalazweni lokuhwebelana kanye naseNhlanganweni Yokudla NezolimoyeNhlangano Yezizwe yasetshenziselwa ukuhlaziya izimakethe ku-Excel spreadsheet. Imiphumela yocwaningo yabonisa ukuthi iNingizimu Afrika isesimweni esikahle futhi inamandla angcono okuncintisana ngempumelelo kwezohwebo uma iqhathaniswa neningi lamazwe acutshungulwayo. Amandla eNingizimu Afrika okuncintisana ngempumelelo adlulwa yilawo e-Brazil, okuyizwe elinamandla kakhulu futhi elihamba phambili kwezokuhwebelana ngoshukela, kulandele i-Thailand kanye ne-France. Imboni kashukela yaseNingizimu Afrika inamandla angaphezulu kwawo wonke lawa amanye amazwe asele ayisikhombisa (okuyi-Mexico, Belgium, Netherlands, Canada, Germany, USA kanye ne-China). Amazwe ahamba phambili angasetshenziswa yiNingizimu Afrika ekukhuphuleni umthamo wemikhiqizo yayo ethunyelwa emazweni angaphandle ahlonzwa ngokusebenzisa i-Trade Potential Index (TPI). Lawo mazwe ahlonziwe akhethwe ngokubala inani lamaphuzu, ukuqhathanisa intela yempahla ekhokhiswa yilawo mazwe emazweni angaphandle athumela ushukela kanye nokubheka ubuningi bamazwe athumela imikhiqizo yawo kulawo mazwe angasetshenziswa yiNingizimu Afrika ukukhulisa umthamo wemikhiqizo yawo ethunyelwa emazweni angaphandle. I-USA, Lesotho, Democratic Republic of Congo, Malawi kanye ne-Egypt ahlonzwa njengamazwe aphuma phambili iNingizimu Afrika engathumela kuwona ushukela. INingizimu Afrika inezivumelwano zokuhwebelana neningi lalawa mazwe, okuyizivumelwano eziyilekelelayo ekutholeni izivumelwano ezizokwenza ibhekelelwe kangcono futhi icatshangelwe uma ithumela imikhiqizo yayo kulawa mazwe angaphandle. Kwenziwa izincomo ezingayilekelela imboni kashukela ukuthi ikwazi ukukhulisa amandla ayo okuncintisana ngempumelelo.