South Africa - International Franchise Association

Total Market Size 214,000 217,000 228,000 218,000
Total Local Production 65,000 68,000 71,000 73,000
Total Exports 14,000 16,000 17,000 23,000
Total Imports 163,000 165,000 174,000 168,000
Imports from the U.S. 48,000 51,000 52,000 48,000
Exchange Rate: 1 USD 7.33 7.16
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: Above figures are unofficial estimates obtained from industry sources.
Note: Figures include exploration and extraction equipment, but
exclude beneficiation and bulk transportation equipment.
Since the 2008 crash of commodity prices, there has been a severe cutback in
investment, project planning and employment in the South African mining sector. The
short-term prospects for redress have improved, but the persistently strong Rand
reduces the revenue from mining exports and hence the ability to significantly increase
capital expenditure. The industry is faced with severe structural challenges; these
include high input costs, electricity supply constraints, Environmental, Health and Safety
(EHS) regulations, a fluctuating exchange rate and logistic inefficiencies.
Sub-Sector Best Prospects Return to top
The South African mining industry is well-developed and sophisticated. Many local
equipment and service providers as well as organized events exist to facilitate the
distribution of goods or services into the African continent.
U.S. goods and services in the following fields are well represented in South Africa
(although Europe is the largest source region of foreign mining equipment):
• Software;
• Furnaces;
• Drill rigs;
• Automated controls;
• Mining processing;
• GIS mapping;
• Communications systems; and
• Materials handling technology.
Mining safety remains a controversial issue and mining executives have pushed this
issue to the forefront of operational considerations and emphasize the role that
technology and training can play to improve the record.
Opportunities Return to top
Mining and related projects have traditionally been responsible for significant
infrastructure development. For example, 2,200 miles of railway line, three new ports
and a large amount of bulk handling infrastructure at other ports are high on the agenda
for both the South African Government and mining consortia. Increasing the efficiency of
material handling systems is high on the agenda of exporters of ores and minerals. The