Topics: Logistics of life
In 2018, goods to the value of just less than $90 billion were imported into South Arica, with about 45% of this originating from China. European and African trade partners accounted for 33% and 10% respectively, with the balance of trade originating throughout the rest of the globe. As the local economy continues to emerge from a recessionary period, it is likely that the demand for foreign goods will continue to grow, making this an economic segment ripe with opportunities for those organisations looking to capitalise on this demand.
2019 promises, to once again be a year of opportunity and turbulence in equal measure. On the local front, South Africa will continue to emerge from the last decade of turmoil, with increasing hope for international investment, growth and stability. 2019 is also an election year, so our economy is likely to feel the impact of political shenanigans in the run-up to voting day. Internationally, economic changes continue unabated with the USA/China trade war and Brexit, to name a few, likely to create ripples throughout the global economy. Supply chains operate at the heart of most industry, and as such, are impacted by a plethora of trends. Here are a few we are keeping our eye on.
In December 2017, South African consumers spent over R100 billion in retail buying. Despite low levels of consumer confidence, the festive season remains a peak spending time within the country, and this increase in shopping translates directly into increased demand on supply chains.
2018 has seen a 19% upsurge in local online sales with South Africans predicted to spend in excess of R45 billion online before the end of the year. This trend is expected to escalate even more over the coming 24 months, with an estimated complete spend of over R60 billion in 2020, which will display a 36% increase as of 2018.