Despite the significant shocks to the global economy in the form of Covid-19 lockdowns, supply chain disruptions and geopolitical events in Europe, SA’s international trade performance has been robust, says Justin Milo, head of trade for SA at Standard Bank.
These shocks have filtered into the South African economy and been complemented by additional shocks, most notably domestic electricity supply constraints. Nonetheless SA’s exports expanded by 11% in 2022 year on year, according to statistics published by the South African Revenue Services. A Citi reports says businesses are now focusing on inventory management strategy, diverse and longer term partnerships with producers and a deeper investment in digital tools. While physical supply chain disruptions have eased, the Citi report says this has given way to a new challenge: high inflation and rising interest rates which is putting pressure on physical supply chains and exacerbating concern for the health of supply chain finance.
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