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19 October 2023 – The influx of imported goods, especially at much lower prices, can unfairly compete with locally produced goods, potentially leading to the closure of local businesses and job losses.
This follows South Africa’s latest import figures which recently increased from R157 981,48 million to R167 982,35 million.
South Africa’s unemployment rate was recorded at 32,6 % in August, and is among the highest in the world.
According to the Quarterly Labour Force Survey (QLFS), this is an increase of 0,2 of a percentage point compared to the fourth quarter of 2022.
One of the major causes of unemployment in the country is the imbalances in the import and export industry in the country.
“We have manufacturers that produce clothing products in our country but most of us prefer purchasing the same products internationally,” said Dumisani Mthalane, the South African National Civics Organisation spokesperson.
Proudly South African (Proudly SA) chief executive officer, Eustace Mashimbye, said they believe that the import and export industry play a significant role in the South African economy. While it is not the sole cause of unemployment in our country, imports do have both positive and negative impacts on our economy and the job market.
It is important to acknowledge that the import and export industry contributes significantly to the economic growth in South Africa. Exports allow our businesses to tap into international markets, creating opportunities for revenue generation and job creation. Moreover, imports provide South African consumers and businesses with access to a wide range of products and services that may not be locally available or cost-effective to produce domestically.
However, the import and export industry has also posed challenges to our economy, particularly in terms of job displacement and trade imbalances.
“At Proudly SA we believe that the key to addressing unemployment in our country lies in striking a balance between promoting local businesses and participating in the global economy. While it is essential to support and nurture our domestic industries, it is also crucial to engage in international trade to harness the benefits of global markets. A thriving import and export industry can create jobs in areas such as logistics, transportation, and trade facilitation” said Mashimbye.
To mitigate the potential negative effects of imports on local industries and employment, Proudly SA advocates for policies that support locally made products and services, such as preferential procurement from South African producers, incentives for local manufacturing, and investments in skills development to enhance the competitiveness of our workforce.
“We have products such as sanitisers, disinfectants, renewable energy that is imported from other countries. Why don’t we have companies in South Africa that produce these imported products? Having these companies in our country would decrease our high unemployment rate,” said Mthalane.
South Africa’s GDP needs to grow by six percent a year to start creating enough jobs just for the 700 000 people who enter the workforce every year, according to Duma Gqubule, a financial analyst who has advised the South African government. Source: Citizen News