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  ANNEX 4 - SOUTH AFRICA 
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  CONTENTS 
1   ECONOMIC ENVIRONMENT ...................................................................................... 284  
1.1   Main Features of the Economy .................................................................................. 284  
1.2   Recent Econom ic Developments................................................................................ 286  
1.3   Trade Performance ................................................................................................. 288  
1.4   Foreign Dire ct Invest ment ....................................................................................... 291  
2   TRADE AND INVESTMENT REGIMES ......................................................................... 293  
2.1   General Framework ................................................................................................ 293  
2.2   Trade Agreements and Arrangements ........................................................................ 293  
2.3   Investme nt Regime ................................................................................................ 295  
3   TRADE POLICIES AND PRACTICES BY MEASURE ...................................................... 298  
3.1   Measures Directly  Affecting Import s .......................................................................... 298  
3.1.1   Customs procedur es and requirements ................................................................... 298  
3.1.2   Import prohibitions, restrictions, an d licensing ......................................................... 299  
3.1.3   Standards and other technical requirements ............................................................ 301  
3.1.4   Sanitary and phyt osanitary requ irements ................................................................ 306  
3.1.4.1   Legal and inst itutional framework ........................................................................ 306  
3.1.4.2   Main SPS requirements ...................................................................................... 307  
3.1.4.3   Genetically modified organisms (GMOs) ................................................................ 308  
3.1.4.4   Marking, labe lling, and pa ckaging ........................................................................ 309  
3.2   Measures Directly Affecting Exports ........................................................................... 310  
3.2.1   Export procedur es and requirements ...................................................................... 310  
3.2.2   Export taxes, charges, and levies ........................................................................... 310  
3.2.3   Export prohibitions, restrictions, and licensing .......................................................... 310  
3.2.4   Export subsidies, finance, and a ssistance  ................................................................ 310  
3.3   Measures Affecting Production an d Trade ................................................................... 311  
3.3.1   Ince ntives .......................................................................................................... 3 11 
3.3.2   Competition policy and price controls ...................................................................... 312  
3.3.2.1   Competition policy ............................................................................................ 312  
3.3.2.2   Pric e contro l ..................................................................................................... 3 14 
3.3.3   State trading, state-owned enterprises, and privatization ........................................... 314  
3.3.4   Government  procurement ..................................................................................... 315  
3.3.5   Intellectual property rights .................................................................................... 318  
4   TRADE POLICIES BY SECTOR ................................................................................... 324  
4.1   Agriculture ............................................................................................................ 324 
4.1.1   Overview ............................................................................................................ 3 24 
4.1.2   Policy ................................................................................................................ . 324 
4.1.3   Key su bsectors .................................................................................................... 327  
4.1.3.1   Crops .............................................................................................................. 327 
Grains  .......................................................................................................................... 327  WT/TPR/S/324 • South Africa 
 
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  Sugar  ........................................................................................................................... 327  
Wine ............................................................................................................................ 3 28 
Horticulture ................................................................................................................... 329  
4.1.3.2   Li vestoc k ......................................................................................................... 3 29 
4.1.3.3   Forestry ........................................................................................................... 329  
4.1.3.4   Fisheries .......................................................................................................... 330 
4.2   Mining and Energy .................................................................................................. 331  
4.2.1   Mining ................................................................................................................ 331  
4.2.1.1   Overview ......................................................................................................... 33 1 
4.2.1.2   Key subsectors ................................................................................................. 332  
4.2.1.2.1   Coal ............................................................................................................. 332 
4.2.1.2.2   Diamonds an d precious metals ......................................................................... 332  
4.2.2   Petroleum and gas ............................................................................................... 334  
4.2.3   El ectricity ...........................................................................................................  335 
4.3   Manufac turing ........................................................................................................ 33 6 
4.3.1   Key su bsectors .................................................................................................... 336  
4.3.1.1   Automotive industry .......................................................................................... 336  
4.3.1.2   Textiles and clothing .......................................................................................... 337  
4.4   Services ................................................................................................................  337 
4.4.1   Telecommunications ............................................................................................. 337  
4.4.2   Financial services ................................................................................................. 339  
4.4.2.1   Banking and othe r credit inst itutions .................................................................... 339  
4.4.2.2   In suranc e ........................................................................................................ 33 9 
4.4.3   Transport ........................................................................................................... 3 40 
Air tran sport .................................................................................................................  341 
Maritime services ........................................................................................................... 342  
Land transport ............................................................................................................... 343  
4.4.4   Tourism .............................................................................................................. 344  
REFERENC ES ................................................................................................................ 346  
5   APPENDIX TABLES .................................................................................................. 347  
 
CHARTS 
 Chart 1.1 GDP growth and contribution , 2008-14  ............................................................... 287
 
Chart 1.2 South Africa's current account  and net financial flows, 2008 -14 .............................. 288  
Chart 1.3 Product composition of merchandise trade,  2008 and 2014 .................................... 289  
Chart 1.4 Direction of merchandise trade, 2008 and 2014 .................................................... 290  
 
TABLES 
 Table 1.1 Selected macroeco nomic indicato rs, 2008-14  ....................................................... 284
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  Table 1.2 Balance of payments, 2008-14 ........................................................................... 291  
Table 1.3 FDI flow an d stock, 2008-13 .............................................................................. 291  
Table 2.1 Selected noti fications, 2009-15 .......................................................................... 294  
Table 2.2 Overview of South Africa's bilateral investment treaties (BITs) ................................ 296  
Table 2.3 Double taxation agreements (DTAs) .................................................................... 297  
Table 3.1 Tariff quotas, 2015 ........................................................................................... 300  
Table 3.2 Annual number of stan dards develope d by SAB S .................................................. 302  
Table 3.3 Legislation upon which some te chnical regulations ar e based, 2015 ......................... 303  
Table 3.4 List of applic able SPS legislation ......................................................................... 306  
Table 3.5 State-owned enterprises, 2015 .......................................................................... 314  
Table 3.6 Main procurement legislation ............................................................................. 316  
Table 3.7 Legislation on intellectual property rights, 2015 .................................................... 319  
Table 4.1 Selected legislation on agriculture, 2015 .............................................................. 325  
Table 4.2 Quota usage fo r imported cheese ....................................................................... 327  
Table 4.3 Port ac tivities, 2015 ......................................................................................... 343  
 
APPENDIX TABLES 
 
Table A1.1 Merchandise exports by product group, 2008-14 ................................................. 347  
Table A1.2 Merchandise imports by product grou p, 2008-1 4 ................................................ 349  
Table A1.3 Merchandise export s by destinatio n, 2008-14  ..................................................... 351  
Table A1.4 Merchandise impo rts by origin , 2008-14  ............................................................ 352  
 
Table A3. 1 Technical regulati ons on foodst uffs, 2009  ......................................................... 353  
Table A3. 2 Incentive schemes, 2015 ................................................................................ 355  
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  1  ECONOMIC ENVIRONMENT 
1.1  Main Features of the Economy  1.1.  South Africa's economy is the second largest in Africa and the most technologically advanced, 
with a vibrant private sector and relatively high-class infrastructure. It is an upper-middle-income 
country, and joined the BRIC group to make it the BRICS (Brazil, the Russian Federation, India, 
China, and South Africa) in 2011. The South African economy contributes to over 90% of SACU GDP and has a relatively large industrial base; it serves as a trade and financial hub in the 
region. 
1.2.  The economy is mainly characterized by its duality, with a sophisticated financial and 
industrial branch coexisting with an underdevelo ped informal one. Unemployment, at a rate of 
25%, remains the most challenging of South Africa's hurdles; and this challenge remains central to 
the various national development plans.  
1.3.  Although noticeable progress has been made  by South Africa since the end of apartheid, 
mainly on the socio-economic front (as the proportion of South Africans living in extreme poverty 
has fallen in recent years), access to clean water, and healthcare remain challenging.  
1.4.  The country's HIV infection rate stood at 15.9% in 2013, making it one of the most 
HIV-affected countries in the world. In addition, income inequality has not improved noticeably, as 
the poorest 20% of South Africans earn only some  2.3% of national income, while the richest 20% 
earn 70%.
1  
1.5.  Given their multiplier effect on the econom y, services, mainly finance together with mining, 
remain the main pillars of South Africa's economy. Although manufacture continues to account for 
a significant share of the GDP, its relative import ance has decreased over time, reflecting the shift 
of the economy towards a service-based economy (Table 1.1). 
1.6.  Trade (imports and exports of goods and services) accounts for some 65% of GDP; and it 
remains important for South Africa's economic performance as imports continue to provide the 
country's manufacturers with raw materials and high standards of equipment, while export 
markets offer increased opportunities to its producers. 
Table 1.1 Selected macroeconomic indicators, 2008-14  
 2008  2009  2010  2011  2012 2013 2014  
GDP at current prices (rand billion) 2,369 2,508 2,748 3,025 3,263 3,534 3,796 
GDP at current prices (US$ billion) 287 296 375 417 397 366 350 
Nominal GDP per capita 5,751 5,863 7,352 8,068 7,610 6,923 6,525 
Population (million) 49.9 50.5 51.1 51.6 52.2 52.9 54 
Unemployment, total (% of total labour force) 22.7 23.7 24.7 24.7 25.0 24.9 .. 
Inflation (CPI) 11.5 7.1 4.3 5.0 5.6 5.7 6.1 
GDP by type of expenditure at constant 
2010 prices (Annual % change) 
GDP 3.2 -1.5 3.0 3.2 2.2 2.2 1.5 
Final consumption expenditure 2.3 -0.8 3.7 4.1 3.4 3.0 1.5 
Final consumption expenditure by 
 households 1.2 -2.6 3.9 4.9 3.4 2.9 1.4 
Final consumption expe nditure by general 
 government 5.8 4.6 3.0 1.7 3.4 3.3 1.9 
Gross fixed capital formation 8.6 -8.5 1.1 9.3 5.2 1.5 -0.6 
Gross domestic expenditure 3.6 -1.4 3.7 4.9 3.9 1.4 0.6 
Exports of goods and services 1.5 -17.0 7.7 4.3 0.1 4.6 2.6 
Exports of goods, free on board 2.0 -18.5 8.7 4.7 -1.4 4.5 2.0 
Exports of services -1.3 -8.0 2.4 2.3 8.8 5.1 6.0 
Imports of goods and services 2.8 -17.7 10.8 10.5 6.0 1.8 -0.5 
                                               
1 Online information. Viewed at: http://da-abroad.org/press-release/challenge-ahead-how-unlock-rapid-
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   2008  2009  2010  2011  2012 2013 2014  
Imports of goods, free on board 4.1 -21.4 9.7 14.0 8.2 2.2 -0.4 
Imports of services -4.2 4.6 15.5 -4.4 -4.7 -0.4 -1.4 
GDP by type of expenditure at current 
prices (% of GDP) 
Final consumption expenditure 78.7 79.4 79.2 79.4 80.5 80.9 80.9 
 Consumption expenditure by households 60.0 59.5 59.0 59.4 60.5 60.6 60.6 
 Consumption expenditure by general 
 government 18.7 19.9 20.2 20.0 19.9 20.3 20.3 
Gross fixed capital formation 23.2 20.7 19.5 19.1 20.1 20.1 20.4 
 Gross fixed capital formation 23.5 21.5 19.3 18.7 18.8 20.0 20.3 
 Change in inventories -0.4 -0.8 0.2 0.4 1.3 0.1 0.1 
Residual item -0.2 -0.5 0.0 0.6 0.7 1.3 0.6 
Exports of goods and services 35.6 27.9 28.6 30.4 29.7 31.0 31.3 
 Exports of goods, free on board 30.8 23.5 24.3 26.3 25.3 26.4 26.4 
 Exports of services 4.9 4.4 4.3 4.2 4.4 4.6 4.8 
Imports of goods and services 37.2 27.5 27.4 29.6 31.0 33.2 33.1 
 Imports of goods, free on board 31.4 22.4 22.2 24.6 26.3 28.3 28.2 
 Imports of services 5.9 5.1 5.2 5.0 4.8 4.9 4.9 
 (% of GDP) 
GDP by kind of economic activity (at 2010 constant basic prices)  
Agriculture, fore stry and fishing 2.7 2.7 2.6 2.6 2.5 2.5 2.6 
Mining and quarrying 9.4 9.0 9.2 8.9 8.5 8.6 8.3 
Manufacturing 15.4 14.0 14.4 14.4 14.3 14.1 13.9 
Electricity, gas and water 2.7 2.7 2.7 2.7 2.6 2.5 2.5 
Construction 3.5 3.9 3.8 3.7 3.7 3.7 3.8 
Services 66.2 67.6 67.2 67.7 68.3 68.5 68.9 
 Wholesale, retail and motor trade; 
 catering and accommodation 14.6 14.6 14.9 15.0 15.2 15.1 15.1 
 Transport, storage and communication 9.2 9.3 9.2 9.2 9.2 9.2 9.3 
 Finance, real estate and business services 20.8 21.3 21.0 21.2 21.4 21.5 21.7 
 General government services 15.5 16.3 16.2 16.4 16.7 16.8 17.0 
 Personal services 6.1 6.1 6.0 5.9 5.9 5.9 5.9 
 (Annual % change) 
Agriculture, fore stry and fishing 19.4 -1.9 -0.3 1.3 0.6 1.5 5.6 
Mining and quarrying -5.3 -5.1 5.3 -0.7 -2.9 4.0 -1.6 
Manufacturing 2.3 -10.6 5.9 2.9 1.9 0.7 0.0 
Electricity, gas and water -3.5 -1.8 2.4 1.4 -0.1 -0.6 -0.9 
Construction 9.9 8.5 0.7 0.4 2.1 2.7 2.9 
Services 4.3 0.7 2.3 3.8 3.1 2.5 2.1 
 Wholesale, retail and motor trade; 
 catering and accommodation 1.8 -1.1 4.4 3.8 3.6 1.9 1.3 
 Transport, storage and communication 3.5 -0.2 1.7 3.0 2.5 2.0 2.3 
 Finance, real estate and business services 5.6 1.1 1.2 4.1 3.0 3.0 2.2 
 General government services 5.6 3.2 2.7 4.5 3.6 3.1 3.0 
 Personal services 3.8 -0.8 0.4 2.4 2.1 1.8 1.4 
 (% of GDP, unless otherwise indicated) 
External sector        
Current account -5.5 -2.7 -1.5 -2.2 -5.0 -5.8 -5.4 
Total reserves (includes gold, current billions 
of US$) 34.1 39.6 43.8 48.7 50.7 49.7 .. 
Total reserves in months of imports 3.3 5.2 4.6 4.3 4.5 4.5 .. 
Terms of trade  (percentage change)        
 Including gold  1.0 5.3 5.9 4.4 -1.4 -5.4 -1.8 
 Excluding gold -0.3 4.5 5.4 3.2 -2.1 -4.6 -1.5 
Rand/US$ (annual average)  8.3 8.5 7.3 7.3 8.2 9.7 10.9 WT/TPR/S/324 • South Africa 
 
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   2008  2009  2010  2011  2012 2013 2014  
Nominal effective exchange rate (index, 
2000=100)a 86 88 100 97 88 76 68 
 Change in nominal effective rateb, c -17.1 2.4 13.7 -2.9 -8.9 -14.4 -10.3 
Real effective exchange rate (index, 
2000=100) a 83 89 100 97 91 82 79 
 Change in real e ffective exchange rateb, c -10.4 7.8 12.3 -3.4 -5.7 -10.1 -3.3 
Public Finance        
Revenue 25.5 23.2 23.3 24.0 23.9 24.3 24.5 
 Tax revenue 24.8 22.7 22.8 23.5 23.2 23.6 24.0 
 of which:         
 Taxes on income, profits and capital 
 gains 15.8 14.4 13.5 13.7 13.8 14.0 14.3 
 Taxes on goods and services 8.4 8.0 8.5 8.8 8.8 9.0 9.2 
 Taxes on international trade and 
 transactions 1.0 0.8 0.9 1.0 1.2 1.3 1.1 
 Non-tax revenue 0.7 0.5 0.5 0.5 0.7 0.7 0.5 
Expenditure 25.8 27.8 27.9 28.0 29.0 29.0 29.2 
Deficit (-) / Surplus (+) -0.4 -4.6 -4.6 -4.0 -5.1 -4.6 -4.7 
National government debt        
 Domestic debt 22.3 26.6 31.4 34.5 37.3 40.1 42.8 
 Foreign debt 4.2 3.5 3.2 3.7 3.6 4.0 4.3 
 Total debt 26.5 30.1 34.7 38.2 40.9 44.2 47.1 
.. Not available. 
a Weighted average exchange rate against most impo rtant currencies. 
b Percentage changes of averages. c Depreciation (-) and appreciation (+). 
Source: South African Reserve Bank, Quarterly Bulletin March 2015 . Viewed at: https://www.resbank.co.za ; 
Statistics So uth Africa, Gross Domestic Product (GDP), 4th Quarter 2014 . Viewed at: 
http://beta2.statssa.gov.za/?page_id=1854&PPN=P0441 ; IMF online information, "International 
Financial Statistics". Viewed at: http://elibrary-data.imf.org/DataExplorer.aspx ; and the World 
Bank's World Development Indicator database. Viewed at: 
http://databank.worldbank.org/dat a/views/variableselection/selectvariables.aspx?source=world-
development-indicators . 
1.2  Recent Economic Developments 
1.7.  South Africa's current economic developm ent strategy is articulated through a number of 
initiatives. The New Growth Plan (NGP), which wa s released in 2010 by the Ministry of Economic 
Development, aims at reducing unemployment by 10 percentage points by 2020. It prioritizes infrastructural development, agriculture, mining, manufacturing, tourism, and promotion of a 
green economy, as the main drivers for job creation. In addition, in 2013, the National Planning 
Commission (NPC) rolled out the 2030 National Deve lopment Plan (NDP), with a view to reducing 
inequality, creating jobs, and promot ing inclusive growth by means of, inter alia , a minimum 
annual growth of 5%, the creation of 5 million jobs by 2020 and 11 million jobs by 2030. 
1.8.  During the review period, the recovery of South Africa's economy was relatively weak, and its 
GDP growth rate remained far below the targets under the country's development plans. The GDP contracted by 1.5% in 2009, in the wake of th e global economic and financial crisis, and its 
corollary weaker global demand and low commodity prices including those for South Africa's main 
exports. A considerable drop in investments in the mining sector, and sluggish household consumption also contributed to the GDP contraction.  
1.9.  However, GDP growth firmly rebounded in 2010 and 2011 at annual rates of 3% and 3.2% 
respectively, before resuming a downward trend to 2.2% in 2012 and 2013, and to 1.5% in 2014 (Table 1.1).  
1.10.  South Africa's economy faces several headwinds that continue to hold it below its growth 
potential. The ongoing downward trend in its GDP gr owth rate is mainly driven by a slowdown in 
household consumption since its initial rebound in 2010-11 (Chart 1.1), reflecting lower net WT/TPR/S/324 • South Africa 
 
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  household wealth in a context of falling asset prices (mainly housing and equity prices). In this 
context, the growth momentum of bank lending has been slower, although South Africa has a 
robust banking system which has resisted the recent financial crisis well through careful and rigid supervision (Section 4).  
1.11.  In 2012, South Africa's sovereign credit was downgraded by Moody's (Baa1) and Standard 
& Poor's (BBB) due to unrest in the mining sect or and its detrimental effects on GDP growth. 
Furthermore, in January 2013, the ratings agency Fitch cut South Africa's sovereign credit rating 
by one notch to BBB, due to subdued growth pr ospects, but acknowledged its sound banking 
system and deep local bond market.  
Chart 1.1 GDP growth and contribution, 2008-14 
(%) 
-4.0-3.0-2.0-1.00.01.02.03.04.05.06.0
2008 2009 2010 2011 2012 2013 2014Household consumption General government consumption
Gross capital formation Trade balance
Residual item GDP
 
Source: WTO Secretariat estimations, based on  data from the South African Reserve Bank, Quarterly Bulletin 
March 2015 . 
1.12.  Household consumption also remains under pressure due to South Africa's high 
unemployment, as its rate was on an upward trend during the review period, although a slight 
improvement was recorded between 2012 and 2013 (Table 1.1).  
1.13.  During the review period, the volatility of the South African rand added to economic 
uncertainty, and further dampened investors' co nfidence and their propensity to increase 
investments. In fact, the rand appreciated by 7.8% and 12.3% in 2009 and 2010 respectively. As 
a consequence, the country's competitiveness suff ered, and exports dropped, particularly in the 
manufacturing sector. The rand resumed depreciating in 2011 (Table 1.1). 
1.14.  The primary objective of monetary policy in South Africa is to maintain price stability, with 
an inflation objective of 3-6% per year. Inflation remained under control during most years of the review period. However, since 2011, the depreciati on of the rand, and the following increase in 
food and fuel prices, as well as unfavourable weather conditions in various key growing areas have 
exerted upward pressure on inflation. In January 2014, the SARB increased its discount rate from 5% to 5.5%; the inflation rate breached the 6% upper target of the South African Reserve Bank's 
monetary policy (Table 1.1). 
1.15.  Since the 1990s, South Africa has maintained a tradition of prudent management of its 
public finances. However, due to low private demand in the wake of the recent global economic and financial crisis, deficit was allowed with a view to boosting the country's overall demand. The WT/TPR/S/324 • South Africa 
 
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  government deficit (as a percentage of GDP) has considerably increased from 0.4% in 2008 to 
4.7% in 2014. Despite this increase, the public  debt burden remained relatively moderate.2  
1.16.  South Africa's current account remained in deficit during the review period, and income and 
trade accounts remained its main components (Table 1.2). In 2010 and 2011, the current account 
balance improved markedly. However, the recent drop in commodity prices has led to its 
noticeable worsening (Chart 1.2).  
Chart 1.2 South Africa's current acco unt and net financial flows, 2008-14 
(R million) 
-250,000-200,000-150,000-100,000-50,000050,000100,000
2008 2009 2010 2011 2012 2013 2014Balance on current account Trade balance
Balance on services Balance on income
Current transfers (net receipts +) 
Note: Data for the previous four years are preliminary and su bject to revision. 
Source: WTO Secretariat estimations, based on  data from the South African Reserve Bank, Quarterly Bulletin 
March 2015 . 
1.3  Trade Performance 
1.17.  South Africa's merchandise trade (imports and exports) was erratic during the review 
period, reflecting changes in nominal exchange rates and commodity prices. While the value of 
exports of goods decreased considerably betw een 2008 and 2009, in the wake of the global 
economic and financial crisis, it picked up in 2010 following slight growth of global demand. The 
same momentum prevailed until 2012, when the rand resumed its downward evolution, and 
commodity prices in global markets dropped (Table A1.1).  
1.18.  Manufacturing and mining are the main contributors to merchandise exports. However, their 
shares were unstable with a downward trend during the review period, while the share of 
agricultural exports steadily increased (Table A1.1 and Chart 1.3).  
                                               
2 Online information. Viewed at: 
http://www.oecd.org/eco/surveys/Sout h%20Africa%202013%20Overview%20FINAL.pdf .  WT/TPR/S/324 • South Africa 
 
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  Chart 1.3 Product composition of merchandise trade, 2008 and 2014 
2008 2014
(a)    Exports (f.o.b.)
Other 
manufactures
2.8%
Manufactures
51.5%Other 
manufactures
3.7%
Transport 
equip.
11.2%Ores and 
other 
minerals
14.5%
Non-ferrous 
metals
10.0%
Chemicals
7.8%Fuels
10.5% Iron and 
steel
7.5%Other semi-
manufactures
7.1%Non-electrical 
machinery
6.3%Gold
5.4%
Manufactures
46.7%Electrical 
machines
3.0%
Total:   US$74.0 billion Total:  US$90.6 billion
(b)    Imports (c.i.f.)
Chemicals
9.8%Other 
manufactures
10.3%
Transport  
equipment
10.4%
Manufactures
61.5%
Electrical
machines  
11.8%
Non-electrical 
machinery
12.8%Fuels
22.3%
Non-electrical 
machinery
11.0%Chemicals
10.9%Other 
manufactures
11.2%
Ores, non-
ferrous 
metals, and 
other 
minerals
2.2 %Fuels
23.3%Other
6.6%
Electrical 
machines
11.5%
Other 
semi-manuf.  
6.2%Transport 
equipment
9.9%
Manufactures
60.7%
Total:   US$87.6 billion Total:   US$99.9 billionNon-
electrical 
machinery
7.4%
Other
6.7%Fuels
9.6%Other
0.5%
Agriculture
12.6%
Iron and steel
12.0%
Other semi-
manuf.
6.4%Agriculture
9.5%
Agriculture
7.2%Agriculture
6.1%Other 
0.1%
Ores, non-
ferrous metals, 
and other 
minerals
3.4%Ores and other 
minerals
12.0%Transport 
equip.
12.3%
Non-ferrous 
metals
17.0%Electrical 
machines
2.3%
Chemicals
7.7%Other semi-
manufactures
7.0%Gold
0.2%
 
Source: UNSD Comtrade database (SITC Rev.3). 
1.19.  Imports also suffered from the global economic crisis; but have rebounded since 2011. Their 
structure is as diversified as exports. However, manufactured products make up over half of total 
merchandise imports. Fuels are also an important import category (Table A1.2). 
1.20.  Africa (mainly SACU countries), the EU, China and the United States are the main 
destinations for South Africa's exports (Table A1.3 and Chart 1.4). Import sources are also 
diversified, with the EU, the United States, and China being the main suppliers. In recent years, China has become the single top exporter to  South Africa (Table A1.4 and Chart 1.4). WT/TPR/S/324 • South Africa 
 
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  Chart 1.4 Direction of merchandise trade, 2008 and 2014  
2008 2014
(a)    Exports (f.o.b.)
United 
States
7.1%
EU (28)
19.7%China
9.6%
SACU
13.4%Japan
5.4%India
4.2% Other Asia
9.0%
Other
14.6%
Mozambique
3.3%Zambia 3.0%Africa
30.5%Other Africa
10.8%Asia
28.1%
Total:   US$74.0 billio n Total:  US$90.6 billion
(b)    Imports (c.i.f.)
Other 
10.0%
EU (28)
31.3%United States
8.0%Saudi 
Arabia 
6.3%Asia
30.4%Other Asia
16.5%China
11.3%India 
2.6%
Americas
13.4%Africa
8.6%Asia
35.6%
EU (28)
27.8%Other 
6.0%
Africa 
13.3%Saudi Arabia 
7.1%Other Asia
15.6%China
15.5%India 
4.6%
United 
States
6.6%
Other America
3.5%Americas
10.1%
Total:   US$87.6 billio n Total:   US$99.9 billionAfrica
17.0%Other Asia
10.0%
EU (28)
31.9%Other
10.5%
United 
States
10.8%
Other America
5.4%Zambia 2.7%Other Africa
12.1%China
5.8%India 
3.1%Japan 
11.0%
Mozambique
2.2%Asia
29.9%
 
Source: UNSD Comtrade database (SITC Rev. 3). 
1.21.  Trade in services has expanded since 2009, with a fall in its traditional deficit. In 2014, the 
deficit in trade in services reached a remarkably low level of US$186 million, down from 
US$2,889 million in 2008 (Table 1.2).  WT/TPR/S/324 • South Africa 
 
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  Table 1.2 Balance of payments, 2008-14a 
(US$ million) 
  2008 2009 2010 2011 2012 2013 2014
Balance on current account -15,878  -8,074  -5,634  -8,991  -19,696 -21,105 -19,041  
 Trade balance -1,758  3,317  8,160  7,022  -3,842 -7,078 -6,325  
 Merchandise exports, free on boardb 82,345  63,313  83,232  99,082  91,837 89,974 86,723  
 Net gold exportsc 5,875  6,228  8,127  10,370  8,654 6,617 5,773  
 Merchandise imports, free on boardb 89,978  66,224  83,198  102,430  104,333 103,669 98,820  
 Balance on services -2,889  -2,117  -3,501  -3,408  -1,273 -1,241 -186 
 Service receipts  13,934  13,061  16,048  17,378  17,636 16,798 16,845  
 Payments for services 16,824  15,177  19,549  20,786  18,909 18,038 17,031  
 Balance on income -8,942  -6,627  -8,004  -10,650  -10,760 -9,610 -9,357  
 Income receipts 5,841  4,021  4,658  5,250  5,908 6,674 7,577  
 Income payments 14,783  10,649  12,662  15,900  16,667 16,285 16,934  
 Current transfers (net receipts +) -2,289  -2,647  -2,290  -1,955  -3,821 -3,176 -3,174  
Capital transfer account (net receipts +) 25  25 31 33 29 25 22  
 Net lending to (+)/bo rrowing from (-) rest 
 of world -15,853  -8,049  -5,603  -8,958  -19,667 -21,080 -19,019  
Balance on financial accountd 8,685  13,487  7,666  9,075  21,102 13,506 14,357  
 Net direct investment (inflow (+)/outflow 
 (-)) 12,343  6,351  3,711  4,500  1,571 1,651 -1,225  
 Net portfolio investment (inflow (+)/outflow 
(-))  -16,325  11,065  10,176  4,493  10,243 6,005 4,561  
 Net financial derivatives (inflow (+)/outflow 
 (-)) 0 0 0 1,809  1,751 775 1,512  
 Net other investment (inflow (+)/outflow 
 (-)) 15,823  318 -1,945  2,777  8,627 5,558 11,039  
 Reserve assets (increase (-)/decrease (+)) -3,155  -4,247  -4,276  -4,504  -1,091 -482 -1,530  
Unrecorded transactionse 7,168 -5,439 -2,064 -117 -1,435 7,574 4,662
a Data for the previous four years ar e preliminary and su bject to revision. 
b Published customs figures adjusted for balance-of-payments purposes. c Commodity gold. d A net incurrence of liabilities (inflow of capital) is indicated by a positive (+ ) sign. A net disposal of 
liabilities (outflow of capital) is indicated by a negative (-) sign. A net acquisition of assets (outflow of capital) is indicated by a negati ve (-) sign. A net disposal of assets (inflow of capital) is indicated 
by a positive (+) sign. 
e Transactions on the current, capital transfer and financial accounts. 
Source: South African Reserve Bank, Quarterly Bulletin March 2015 . 
1.4  Foreign Direct Investment 
1.22.  During the review period, annual inflows of foreign direct investment (FDI) into South Africa 
showed remarkable variability. This reflected the general economic sentiment marked by low confidence of investors. The global economic crisis depressed the good performance recorded 
during the previous review. However, between 2012 and 2013, an improvement was noticeable as 
FDI inflows grew from US$4.5 billion to US$8.1 billion (Table 1.3).  
1.23.  South Africa is also an important investor abroad, mainly in other African countries.  
Table 1.3 FDI flow and stock, 2008-13  
  2008  2009  2010  2011 2012 2013  
  (US$ million) 
Flow        
 Direct investment in South Africa 9,209 7,502 3,636 4,243 4,559 8,188 
 Direct investment abroad -3,134 1,151 -76 -257 2,988 5,620 
S t o c k         
 Direct investment in South Africa 83,649 138,751 179,564 159,391 163,510 140,047 WT/TPR/S/324 • South Africa 
 
- 292 - 
 
    2008  2009  2010  2011 2012 2013  
 Direct investment abroad 49,439 70,296 83,248 97,051 111,780 95,760 
  (% of GDP) 
F l o w         
 Direct investment in South Africa 3.2 2.5 1.0 1.0 1.1 2.2 
 Direct investment abroad -1.1 0.4 0.0 -0.1 0.8 1.5 
Stock        
 Direct investment in South Africa 29.2 46.9 47.8 38.3 41.1 38.3 
 Direct investment abroad 17.2 23.8 22.2 23.3 28.1 26.2 
Source: UNCTAD Stat. Viewed at: http://unctad.org/en/Pages/Statistics.aspx ; and Central Bank, Quarterly 
Bulletin March 2015 . WT/TPR/S/324 • South Africa 
 
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  2  TRADE AND INVESTMENT REGIMES 
2.1  General Framework 2.1.  The Department of Trade and Industry (DTI ) continues to be the main government agency 
responsible for trade policy formulation, in cooperation with technical ministries such as the 
departments in charge of, inter alia , finance, economic development, agriculture, health, mineral 
resources, and energy. Various other government agencies have trade policy-related responsibilities (see Sections 3 and 4). 
2.2.  When formulating trade policy, the DTI also  engages in active consultation with domestic 
interest groups, including business people and labour unions. Public consultations are regularly undertaken prior to the adoption of trade-related laws. Several pieces of legislation are in place in South Africa to regulate trade and related issues (Table A2.1).  
2.3.  Designated parliamentary committees assist the DTI in carrying out periodic reviews and 
assessments of trade policies. In addition, the Parliament has important responsibilities in ratifying treaties.  
2.4.  The International Trade Administration Commission (ITAC) continues, for the time being, to 
administer issues such as customs duties, duty and tax concessions, import and export controls, and anti-dumping, safeguard, and countervailing measures. However, ITAC is also responsible for 
some designated SACU-related issues, such as customs, import and export control, and 
contingency trade remedies (Main Report, Section 2). 
2.5.  According to the authorities, consultations were undertaken to review the evolution of South 
Africa's tariff structure and its trade effects sinc e 1994. In light of this, a Trade Policy and Strategy 
Framework (TPSF) was adopted in 2010 and revised in 2012. It specifies trade-related measures 
that can contribute to the Government's broad ec onomic development objectives outlined in the 
NGP and the NDP, with a view to diversifying  the economic base, as well as producing and 
exporting high-value-added products.  
2.6.  The Framework recommends a "strategic tariff policy" approach, whereby tariff policy is 
decided primarily on a sector-by-sector basis, and dictated by specific sectoral strategies. For 
instance, it recommends that tariffs on inputs be reduced or removed to lower production costs for 
labour-creating manufactures. Furthermore, tariffs on goods produced by South Africa's strategic industries (from an employment or value-addition perspective), may be raised to ensure long-term sustainability and job creation "in the context of domestic production capabilities/potentialities and 
the degree of trade and production distortions on these products at the global level".
1 
2.7.  During the review period, amendments were made to trade and trade-related legislation in 
several areas, including customs procedures, tariff issues, competition, and intellectual property 
rights (Section 3). 
2.2  Trade Agreements and Arrangements 2.8.  South Africa is an original Member of the WTO. It participated actively in the negotiations on 
the WTO Trade Facilitation Agreement (TFA), and it has yet to notify its category A measures, i.e. 
TFA provisions that a developing member country designates for implementation upon entry into force of the Agreement. According to the authorit ies, the ratification process is ongoing.   
2.9.  South Africa continues to defend its tr ade interests through the WTO's dispute settlement 
mechanism (Main Report, Section 2). It continues to make regular notifications to the WTO 
(Table 2.1). In addition, it submits tariff and trade data annually to the WTO Integrated Database (IDB). 
                                               
1 Online information. Viewed at: 
http://www.itac.org.za/upload/Trade%20Policy%20and%20Strategy%20Framework.pdf . WT/TPR/S/324 • South Africa 
 
- 294 - 
 
  Table 2.1 Selected notifications, 2009-15 
WTO Agreement Description of 
requirement Periodicity Most recent notification 
Agreement on Agriculture 
Article 18.2 Domestic support Annual since 1996 G/AG/N/ZAF/83, 
26 February 2015; 
G/AG/N/ZAF/77, 
14 December 2012; 
G/AG/N/ZAF/73, 
13 May 2011; 
G/AG/N/ZAF/71, 
9 September 2009 
 
 
Article 18.3 Domestic support 
exemptions Annual since 1996 G/AG/N/ZAF/68, 
25 May 2005  
Articles 10 and 18.2 Export subsidies Annual since 1996 G/AG/N/ZAF/78, 
14 December 2012; 
G/AG/N/ZAF/74, 
13 May 2011; 
G/AG/N/ZAF/70, 
9 September 2009 
 
Article 18.2 Tariff quotas Annua l since 1996 G/AG/N/ZAF/81, 
8 October 2014; 
G/AG/N/ZAF/79, 
14 December 2012; 
G/AG/N/ZAF/75, 
13 May 2011 
Articles 5.7 and 18.2 Special safeguard 
provisions Annual since 1996 G/AG/N/ZAF/80, 
14 December 2012; 
G/AG/N/ZAF/76, 
13 May 2011 
Article 16.2 Decision on possible negative 
effects of the reform 
programme on LDC-NFIDC Annual since 1996 G/AG/N/ZAF/82, 
8 October 2014; 
G/AG/N/ZAF/72, 
13 May 2011; 
G/AG/N/ZAF/69, 
9 September 2009 
Agreement on the Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement) 
Article 18.5 Laws and regulations Once G/ADP/N/1/ZAF, 
20 January 2014 
Article 16.4 Anti-dumping actions taken Semi-annual G/ADP/N/265/ZAF, 
17 February 2015 
Article 16.4 Anti-dumping actions taken Ad hoc G/ADP/N/270, 16 April 2015 
Agreement on Rules of Origin 
Paragraph 4 of Annex II Preferential Rules of Origin  G/RO/N/87, 
1 November 2012 
Agreement on Sanitary and Phytosanitary Measures 
Article 7, Annex B SPS to be notifi ed promptly Once  G/SPS/N/ZAF/37, 
29 October 2014 
Agreement on Safeguards 
Article 12.6 Laws, regulations, and 
administrative procedures Once G/SG/N/1/ZAF/2, 
27 September 2004 
Agreement on Subsidies and Countervailing Measures 
Article 25.11 Countervailing actions taken Semi-annual G/SCM/N/274/ZAF, 
27 August 2014 
Agreement on Technical Barriers to Trade  
Article 10.6 Information about technical 
regulations, standards, and 
conformity assessment  Once G/TBT/N/ZAF/93-97, 
27 January 2009 WT/TPR/S/324 • South Africa 
 
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  WTO Agreement Description of 
requirement Periodicity Most recent notification 
General Agreement on Trade in Services (GATS)  
Article III:4 or IV:2 Transparency Once S/ENQ/78/Rev.15, 4 
February 2015 
Agreement on Customs Valuation 
 Checklist of issues  G/VAL/N/2/ZAF/1, 
22 December 2014 
Source: WTO Secretariat. 
2.10.  As a SACU member State, South Africa is a signatory to the series of RTAs signed by it 
(Main Report, Section 2). According to the authorities, the Trade, Development, and Cooperation Agreement (TDCA) concluded in 1999 between Sout h Africa and the EU served as the basis for 
SACU's market access offer in the recently conclu ded EPA negotiations (Main Report, Section 2).  
2.11.  Products originating from South Africa are eligible for non-reciprocal preferences, including 
lower tariffs or preferential tariff quotas under, inter alia , the U.S. African Growth and Opportunity 
Act (AGOA), and the GSP schemes of Japan, No rway, Switzerland, and the United States. 
2.3  Investment Regime  
2.12.  South Africa's broad foreign investment re gime has not changed since the previous review. 
Sector-specific legislation continues to set conditions for investment in South Africa by overseas 
persons, as there is no stand-alone foreign investment legislation. 
2.13.  Pursuant to the Company Act 2008, any foreign company must register with the Company 
and Intellectual Property Commission within 20 business days of first beginning to conduct business or non-profit activities, as the case may be.  A foreign company shall be regarded as 
conducting business, or non-profit activities, as th e case may be, within South Africa if that foreign 
company: (1) is a party to one or more employment contracts within the Republic; or (2) is engaging in a course of conduct, or has engaged in a course or pattern of activities within 
South Africa over a period of at least six months. 
2.14.  South Africa is party to the SADC's 2010 Protocol on Finance and Investment. Under the 
protocol, signatory countries must give investors "fair and equitable treatment" and pay "prompt, 
adequate and effective" compensation to foreign in vestors in the event of expropriation. It also 
provides for international arbitration for foreign investors. 
2.15.  On 1 November 2013, the authorities pu blished, for public comment, the Promotion and 
Protection of Investment Bill. According to the author ities, the purpose of the bill is to ensure that 
(i) South Africa remains open to foreign direct investment (FDI); (ii) South Africa provides 
adequate protection to FDI; and (iii) these objectives are balanced with the right of government to regulate in the national and public interest. It includes various provisions on, inter alia , security for 
foreign investors, national treatment, as well as on expropriation, property rights, and dispute 
settlement.  
2.16.  The bill provides for a mediation process that can be facilitated via the Department of Trade 
and Industry (DTI) or a competent body. An in vestor is not precluded from approaching a 
competent court to resolve the dispute. As a last resort, under the dispute resolution section, the Government may consent to international arbitration subject to the exhaustion of domestic remedies.  
2.17.  South Africa is party to numerous bilateral investment treaties (BITs) of which several have 
not yet entered into force (Table 2.2). WT/TPR/S/324 • South Africa 
 
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  Table 2.2 Overview of Sout h Africa's bilateral investment treaties (BITs) 
No. Partners Status Date of  
signature Date of  
entry into force 
1 Algeria  Signed (not in force) 24/09/2000  
2 Angola  Signed (not in force) 17/02/2005  
3 Argentina  In force 23/07/1998 01/01/2001 
4 Austria  Terminated 28/11/1996 01/01/1998 
5 BLEU (Belgium-Luxembourg Economic Union)  Terminated 14/08/1998 14/03/2003 
6 Brunei Darussalam  Signed (not in force) 14/11/2000  
7 Canada  Signed (not in force) 27/11/1995  
8 Chile  Signed (not in force) 12/11/1998  
9 China  In force 30/12/1997 01/04/1998 
10 Congo, Democratic Republic of the  Signed (not in force) 31/08/2004  
11 Congo  Signed (not in force) 01/12/2005  
12 Cuba  In force 08/12/1995 07/04/1997 
13 Czech Republic  In force 14/12/1998 17/09/1999 
14 Denmark  In force 22/02/1996 23/04/1997 
15 Egypt  Signed (not in force) 28/10/1998  
16 Equatorial Guinea  Signed (not in force) 17/02/2004  
17 Ethiopia  Signed (not in force) 01/01/2008  
18 Finland  In force 14/09/1998 03/10/1999 
19 France  In force 11/10/1995 22/06/1997 
20 Germany  Terminated 11/09/1995 10/04/1998 
21 Ghana  Signed (not in force) 09/07/1998  
22 Greece  In force 19/11/1998 05/09/2001 
23 Iran, Islamic Republic of  In force 03/11/1997 05/03/2002 
24 Israel  Signed (not in force) 20/10/2004  
25 Italy  In force 09/06/1997 16/03/1999 
26 Korea, Republic of  In force 07/07/1995 06/06/1997 
27 Libya  Signed (not in force) 14/06/2002  
28 Madagascar  Signed (not in force) 13/12/2006  
29 Mauritius  In force 17/02/1998 07/10/1998 
30 Mozambique  In force 06/05/1997 28/07/1998 
31 Netherlands  Terminated 09/05/1995 01/05/1999 
32 Paraguay  In force 03/04/1974 16/06/1974 
33 Qatar  Signed (not in force) 20/10/2003  
34 Russian Federation  In force 23/11/1998 12/04/2000 
35 Rwanda  Signed (not in force) 19/10/2000  
36 Senegal  Signed (not in force) 05/06/1998  
37 Spain  Terminated 30/09/1998 23/12/1999 
38 Sweden  In force 25/05/1998 01/01/1999 
39 Switzerland  Terminated 27/06/1995 29/11/1997 
40 Tanzania, United Republic of  Signed (not in force) 22/09/2005  
41 Tunisia  Signed (not in force) 28/02/2002  
42 Turkey  Signed (not in force) 23/06/2000  
43 Uganda  Signed (not in force) 08/05/2000  
44 United Kingdom  In force 20/09/1994 27/05/1998 
45 Yemen  Signed (not in force) 01/08/2002  
46 Zimbabwe  Signed (not in force) 27/11/2009  
Source: UNCTAD online information. Viewed at: 
http://investmentpolicyhub.unctad. org/IIA/CountryBits/195#iiaInnerMenu . 
2.18.  Following a review in 2010, South Africa notified the following countries that it was 
terminating its BITs with them: the Belgo-Luxembourg Economic Union, Spain, Netherlands, United Kingdom, France, Germany, Denmark, Swit zerland, Austria, Italy and Greece. Sweden and 
Finland too have been notified of South Africa’s intention to terminate its BITs upon expiration of 
the validity period.  
2.19.  South Africa has double taxation agreements (DTAs) currently in force with 72 economic 
partners (Table 2.3).  WT/TPR/S/324 • South Africa 
 
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  Table 2.3 Double taxation agreements (DTAs)  
Existing comprehensive agreements 
Algeria Indonesia Portugal 
Australia Iran Romania 
Australia Protocol (2008) Ireland Protocol (February 2012) Russian Federation 
Austria Protocol (March 2012) Israel Rwanda 
Belarus Italy Saudi Arabia 
Belgium Japan Seychelles 
Botswana Korea Seychelles Protocol (May 2012) 
Brazil Kuwait Singapore 
Bulgaria Lesotho Slovak Republic 
Canada Luxembourg Spain 
China (People's Republic  of) Malawi Swaziland 
Croatia Malaysia Protocol (March 2012) Sweden Protocol (March 2012) 
Cyprus Malta Switzerland (New treaty - entry 
into force 27 January 2009) 
Czech Republic Mauritius Taiwan 
DRC (July 2012) Mexico Tanzania 
Denmark Mozambique Thailand 
Egypt Namibia Tunisia 
Ethiopia Netherlands Turkey 
Finland Netherlands Protocol (2008) Uganda 
France Poland Ukraine 
Germany New Zealand United Kingdoma 
Ghana Nigeria United Kingdom Protocol 
(October 2011) 
Greece Norway United States of America 
Hungary Oman Zambia 
India Pakistan Zimbabwe 
a The United Kingdom treaty was extended to Grenada and Sierra Leone. The United Kingdom 
agreement includes Granada and Sierra Leone at a rate of 12% withholding tax for royalties. For 
non-treaty countries the withholding tax rate in respect of royalties and know-how payments is currently 12%. This will increase to 15% with effect from 1 January 2015. 
Source: information provided by South African authorities 
 WT/TPR/S/324 • South Africa 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures and requirements 3.1.  Trade activities, including imports, are open to nationals and foreigners. Importers are 
required to register with the South African Revenue Service (SARS) when the value of traded 
goods exceeds R 50,000. SARS is responsible for customs procedures. It implements, inter alia , 
border control, administration of trade policy measures including industrial schemes, and revenue 
collection. 
3.2.  Import procedures, including customs va luation, and appeal mechanisms against SARS' 
decisions are regulated by the Customs and Ex cise Act, 1964 (Act No. 91 of 1964). Customs 
procedures can be done either by the importer or  on his/her behalf by a customs broker. Import 
clearance documentation must be lodged within seven days of the arrival of goods in South Africa. 
3.3.  Basic documents required for imports to South Africa include: a commercial invoice which 
shows the price charged to the importer in addition  to the cost of placing the goods on board the 
ship for export; a bill of lading; insurance do cuments; and a packing list. Other documentation 
may be required by customs depending on the product. A single administrative document (SAD 500) is used by SACU countries for customs declaration (Main Report, Section 3.1). 
3.4.  During the review period, SARS embarked on a wide range of trade facilitation reforms, 
including legislative changes and modernization of customs procedures in order to further streamline the procedures. The Customs and Excise Act was revised in order to, inter alia , give 
effect to the Revised Kyoto Convention and other existing international instruments, as well as to 
establish a sound, clear and logical framework. The revised legislation consists of three different 
legal instruments that are to replace the Customs and Excise Act upon their entry into force:  
 the Customs Control Act, which establishes a customs control system for all goods imported 
into or exported from South Africa, and pre scribes the operational aspects of the system; 
 the Customs Duty Act, which provides for the imposition, assessment and collection of 
customs duties; and 
 the Excise Duty Bill to provide for the impositi on, assessment and collection of excise duties.  
3.5.  The Customs Control Act, 2014 (Act No. 31 of 2014) and the Customs Duty Act were 
published in the Government Gazette on 23 July 2014. Upon their entry into force, they will replace the provisions of the current Customs and Excise Act, 1964, in relation to customs only. 
3.6.   Until the adoption and implementation the Excise Duty Bill, the Customs and Excise 
Amendment Act, 2014 once implemented will regulate excise duties.  
3.7.  A customs determination system (binding advance ruling) is in place under the Customs and 
Excise Act, 1964. According to the authorities, the new Customs Control Act provides for binding 
advance rulings based on the WTO Trade Facilitation Agreement. 
3.8.  Complaints against decisions by a customs officer may be referred to the officer's immediate 
supervisors, and then appeals may be lodged with in 30 days of the date of the decision. If 
unsatisfied with the decision of the appeal commi ttee, the appellant may make use of alternative 
dispute resolution procedures.  
3.9.  In 2013, SARS migrated to the interfront integrated customs and border management 
system. According to the authorities, interfront is used by all customs posts throughout South 
Africa. 
3.10.  All imports to South Africa are subject to the SACU Common External Tariff (CET). SACU 
excise duties apply on, inter alia , wine, spirits, beer and other fermented beverages, tobacco, and 
fuel (Main Report, Section 3.3). Levies are collected on certain agricultural products (Section 4); WT/TPR/S/324 • South Africa 
 
- 299 - 
 
  and an environmental levy on certain goods. A fuel levy and the road accident fund (RAF) levy are 
also in place.  
3.11.  The core VAT regime (rates and product coverage) has not changed in South Africa since 
2009. VAT applies to all imported or locally produc ed goods and services. A standard rate of 14% 
applies to most goods and services. Zero-rated goods include: exports; certain basic foodstuffs; 
certain goods used or consumed for agricultural, pastoral or other farming purposes (e.g. animal 
feed, seed, fertilizers, pesticides, and animal remedies); certain fuels (on lighting paraffin, diesel, 
and gasoline); and international transport of goods and passengers. Goods and services exempt 
from VAT include financial services; donated go ods or services or any other goods made or 
manufactured with donated inputs; the supply of residential accommodation; the supply of certain 
educational services; and the supply of certain transport services.  
3.12.  The base of the VAT, for local supplies, is the "domestic open-market value".1 For imports, 
the taxable value is the f.o.b. customs value plus a 10% mark-up on the customs value, as well as 
the amount of any duties levied. The 10% mark-up on the customs value is applicable when goods 
are imported from a country outside SACU.  
3.13.  Various provisions for rebate of duty and taxes exist for specific materials used in domestic 
manufacturing (Main Report, Section 3.3).  
3.14.  Goods temporarily admitted into South Africa  for processing, repair, cleaning, reconditioning 
or for the manufacture of goods exclusively for export, and goods temporarily admitted and then 
exported in the same state are exempt from duties and taxes. Imports may enter under temporary admission, including for inward processing, or into a bonded warehouse for manufacturing and 
subsequent exportation; duties and taxes are su spended on such imports. Goods cleared from a 
bonded warehouse for domestic consumption are subject to import duties and other taxes. Goods imported to be processed in the industrial development zones (IDZs) are also exempt from 
customs duties and taxes. Imported goods may also  be admitted under rebate of duty for use in 
customs controlled areas (CCAs), bonded areas within the IDZs. 
3.15.  Until the implementation of the Customs Duty  Act, the Customs and Excise Act will continue 
to regulate rebates on any customs duties, the fuel levy and the road accident fund levy on 
specific goods imported for, inter alia , domestic consumption by diplomats (based on reciprocal 
treatment), special events such as international exhibitions, relief in cases of natural disasters and famines, and manufacturing and commercial use of goods re-imported into South Africa.  
3.1.2  Import prohibitions, restrictions, and licensing 
3.16.  As at the time of the previous review, imports control is regulated mainly by the 
International Trade Administration Act (Act No. 71 of 2002). Goods currently subject to import 
control and for which licences (permits) are required are listed in the Government Gazette.
2 In 
2012, South Africa notified its import licensing regime under Article 7.3 of the WTO Agreement on Import Licensing Procedures; import restrictions apply to used goods
3; goods controlled under the 
Montreal Protocol; and under the 1998 Convention against chemicals used in illegal drug 
manufacturing, the Basel Convention. 
3.17.  Import control is also maintained under, inter alia , the Meat Safety Act (Act No. 40 of 
2000), the Fertilizers, Farm Feeds, Agricultural Remedies, and Stock Remedies Act (Act No. 36 of 
1947), the Agricultural Pests Act (No. 36 of 1983), and associated regulations. The import control 
regime is implemented for various purposes, including: protection of public morals, compliance with domestic regulations and relevant internationa l conventions, and protection of public health. 
Controlled imports include live plants and animals and products thereof; drugs and narcotics; 
                                               
1 The open-market value is the amount the goods and/ or services would generally fetch if their supply 
were freely offered, in similar circum stances, between persons who are not connected persons, in South Africa 
(Section 3, Value-Added Tax Act (Act No. 89 of 1991)). 
2 Online information. Viewed at: http://www.itac.org.za/upload/gg35007_nn91-Import-Control-10-Feb-
2012.pdf .  
3 Used goods may be admitted under rebate provisions , as they are used as inputs for some specific 
industries. WT/TPR/S/324 • South Africa 
 
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  pornographic or objectionable materials; uncut diamonds; and waste and hazardous materials. The 
regime applies to all imports, including from other SACU countries.  
3.18.  Applications for import licences are consid ered by the Import and Export Control Unit of 
South Africa's International Trade Administration Commission. In the case of some specified 
goods, applications may be considered by the Departments of Health and Environmental Affairs.  
3.19.  Tariff quotas (TQs) apply to some agricultural products (Table 3.1). They are administered 
through import licences issued by the Department of Agriculture on a quarterly or bi-annual basis 
and applicants need to register with SARS and th e DTI. The licence allocation system takes into 
account: Black Economic Empowerment (BEE) status of the applicants, i.e. eligibility of companies under the Broad-Based Black Economic Empowerment Act (Act No. 53 of 2003); the market share of applicants, derived from historical data for the past three years; the number of applicants; and 
the quota available. Out-of-quota imports are su bject to the SACU CET, while lower (reduced) 
tariff rates apply to in-quota imports. 
Table 3.1 Tariff quotas, 2015 
 
HS 
code Product 
description Tariff rates 2008 
Quota 
commitment Fill ratio (%) 
In-quota (%) Out-of-quota (% or 
cents) 2012 2013 
0201 
and 0202 Meat of bovine 
animals 13.8; 32 40% or 240 c/kg 26,254 70.2 51.3 
0203 Meat of swine 7.4 0%; 15% or 130 c/kg 4,691 100.0 100.0 
0204 Meat of sheep 13.2; 16.4; 19 40% or 200 c/kg 6,002 80.3 80.1 
0206 Edible offal 7.6 0%; 22% or 240 c/kg; 
30% or 130 c/kg 2,544 100.0 100.0 
0207 Meat and edible 
offal of poultry 7.4; 16.4 0%;  29,033 100.0 100.0 
0401 Milk and cream, 
fresh 19.2 0% 53,657 28.4 8.0 
0402 Milk powder 19.2 450 c/kg (max. 96%) 4,470 10.5 0.0 
0403 Buttermilk and 
yoghurt 19.2 0%; 450 c/kg (max. 
96%) 213 100.0 100.0 
0404 Whey 19.2 450 c/kg (max. 96%) 2,786 100.0 100.0 
0405 Butter 15.8 500 c/kg (max. 79%) 1,167 13.6 1.7 
0406 Cheese 19 500 c/kg (max. 95%) 1,989 0.0 0.9 
0407 
and 
0408 Eggs 3.8 0%; 19% 9,000 0.0 0.0 
0701 Potatoes 9.8 0.44 c/kg 48,161 0.1 0.1 
070520 Chicory, fresh 6 0% 4 0.0 0.0 
0708 Peas and beans, 
fresh 4.8; 6.6 0%; 15% 263 100.0 100.0 
0710 Vegetables, 
frozen 4.8; 6.6; 7.4; 
9.8 0%; 10%; 20%; 24%; 
30% 583 0.0 14.1 
0712 Dried vegetables 7.4 20%; 4 c/kg 860 74.3 67.2 
071320 
and 
071390 Dried peas 4.8; 6.6 0%; 15%; 24% 5,184 29.6 42.8 
071330 Dried beans 4.8 10%; 15% 11,063 81.5 84.7 
071340 Lentils 9.8 0% 1,601 8.9 0.0 
080620 Grapes, dried 4.6 10% 397 0.0 0.0 
0813 Dried fruit 6; 6.6; 8.8; 
10.8; 14 10% 349 24.1 18.9 
0901 Coffee 23.8 0%; 20%; 6 c/kg; 10 
c/kg 15,746 100.0 100.0 
0902 Tea 34 0%; 400 c/kg 11,375 100.0 100.0 WT/TPR/S/324 • South Africa 
 
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  HS 
code Product 
description Tariff rates 2008 
Quota 
commitment Fill ratio (%) 
In-quota (%) Out-of-quota (% or 
cents) 2012 2013 
1001 ex 
1100 Wheat or wheat 
equivalent 4.2; 14.4; 19.8 0%; 10%; 20% 
46.1 c/kg; 69.2 c/kg 108,279 100.0 100.0 
1002 Rye 4.2 0% 83 100.0 100.0 
1003 Barley 8.2 0% 14,552 100.0 100.0 
ex 1100 Barley equivalent 8.2 0% 96,248 100.0 100.0 
1004 ex 
1100 Oats or oat 
equivalent 6.6; 19.8 0%; 2.75 c/kg 7,333 100.0 100.0 
1005 ex 
1100 Maize or maize 
equivalent 8.6; 10; 19.8 0%; 5% 269,000 94.3 3.1 
1007 Grain sorghum 6.6 3% 21,116 100.0 100.0 
1008 Other cereals 6.6; 8.6 0%; 5% 145 100.0 100.0 
1201 Soya beans 8 8% 1,717 56.8 100.0 
1202 Groundnuts 14 10% 7,908 100.0 100.0 
1204 Linseed 9.4 9.4% 202 100.0 100.0 
1205 Rapeseed 8.0 10% 871 2.4 9.2 
1206 Sunflower seed 9.4 9.4% 14,514 17.5 100 
120921 Lucerne seed 5.0 0% 576 35.8 74.7 
1507, 
1508,  1510-
1515 Vegetable oils 9.8; 12.2; 13.4; 
16.2 0%; 9.8%; 10% 61,083 100.0 100.0 
1701 Sugar 21 207.1 c/kg 62,037 100.0 100.0 
1702 Other sugars 13.6 0% 6,391 100.0 100.0 
1703 Molasses 13.6 0% 34,533 100.0 100.0 
1901 Malt extracts 7.4; 19.2; 19.8 20%; 10% or 55 c/kg 
less 90% 6,119 3.5 0.3 
1902 Pasta 10.8 20%; 30%; 3 c/kg; 
40%; 5.5 c/kg 1,749 42.7 33.7 
1903 Tapioca 8.6 0% 5,448 71.1 60.9 
2008 Preserved fruit 
and nuts 0; 6.6; 7.4; 8.6; 
12; 14 0%; 5%; 20%; 55%; 
0.99 c/kg 1,636 100 100 
2106 Food 
preparations 7.4 0%; 5%; 10%; 20%; 
154 c/L 3,109 80.5 83.6 
2204-
2208 Wine and spirits 
(LI) 13.4; 14.6; 19.6; 
24.2; 119.4 25%; 136 c/L; 154 
c/L; 317 c/L of 
absolute alcohol 9,572,405 100 100 
2209 Vinegar (LI) 14.6 5 c/L 15,000 100 100 
2303 Corn gluten feed 8.6 0% 3,960 96.2 88.7 
2304-
23.06 Oil-cake 6.6 6.6% 120,667 100 100 
2401 Tobacco 8.8 77 c/kg; 15% or 860 
c/kg less 85%; 860 
c/kg less 85% (max. 
44%) 16,773 58.0 64.9 
5201 Cotton 12 0%; 15%; 160 c/kg 17,101 100 100 
Source: Data provided by the South African authorities.  
3.1.3  Standards and other technical requirements 
3.20.  The overall structure of South Africa's in stitutional framework on standards and technical 
regulations has not fundamentally changed. SABS is South Africa's national enquiry point under 
the TBT Agreement and the DTI the national notifica tion authority. The main institutions continue 
to operate under the DTI.  WT/TPR/S/324 • South Africa 
 
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  3.21.  The Standards Act (Act No. 8 of 2008) establishes the South African Bureau of Standards 
(SABS) as the primary institution responsible for the development, promotion, and maintenance of standards, and the provision of conformity assessment services. 
3.22.  Under the Measurement Units and Measurem ent Standards Act No. 18 of 2006, the National 
Metrology Institute of South Africa (NMISA) is responsible for administering the International 
System of Units as well as maintaining and deve loping primary scientific standards for physical 
quantities for South Africa and comparing those standards with other national standards to ensure 
global measurement equivalence. The institute furthermore provide reference analysis in the case 
of a measurement dispute.  
3.23.  The Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 
2006 (Act No. 19 of 2006) provides a legal basis for the South African National Accreditation 
System (SANAS) to independently assess and accredit bodies that provide conformity assessment 
services (testing, inspection and certification). SANAS therefore provides an internationally recognized (by ILAC and IAF) independent third-pa rty examination of the competence of a facility 
against a specific set of criteria. South Africa has accepted the Code of Good Practice for the 
Preparation, Adoption and Application of Standards under Annex 3 of the WTO Agreement on Technical Barriers to Trade. 
3.24.  Since 2009, South Africa has notified some 100 technical regulations to the WTO. They 
cover products in areas such as environmental protection, human health, food standards, and product safety. During the same period, two spec ific trade concerns were raised by some WTO 
Members regarding: (i) South Africa's Liquor Products Act of 1989 (by the United States in 2011); 
(ii) South Africa's requirements on labelling and advertising of pre-packaged foodstuff (by the EU 
and New Zealand in 2014). 
3.25.  According to the authorit ies, the adoption of South Afri can national standards (SANS) 
continues to involve wide consultation with all parties concerned, including manufacturers, 
suppliers and consumers; and SANS are aligned with international standards to the greatest extent possible. Since 2009, on average around half of standards published by South Africa are 
harmonized with international standards (Table 3.2). 
Table 3.2 Annual number of st andards developed by SABS 
Year Total number Share harmonized with 
international standards 
2009-10 857 61% 
2010-11 833 52% 
2011-12 497 40% 
2012-13 478 50% 
Source: Information provided by the authorities. 
3.26.  There are over 298 technical committees and subcommittees administered by SABS to 
develop standards. They are in charge of drafti ng standards. Draft South African standards (DSS) 
are made available for public comment, nationally and internationally (public enquiry stage); the 
comment period is 60 days. The comments are discussed by the committees and, through a consensus, incorporated into the standard prior to finalization. The draft is forwarded to the 
Standards Approvals Committee (SAC) for ratification  before their publication in the Government 
Gazette as national standards.  
3.27.  A SANS becomes a technical regulation on ce referenced; any department with regulatory 
status may reference a standard. In consequence, various national departments are responsible 
for developing technical regulations.  
3.28.  Under the National Regulator for Compulsory Specifications Act, the National Regulator for 
Compulsory Specifications (NRCS) administers technical regulations with a view to protecting 
human health, safety and environment, and ensuring fair trade in accordance with government 
policies and guidelines. In addition, several laws serve as a basis for the imposition of technical regulations (Table 3.3). The NRCS also administer s the Legal Metrology Act. The Act and technical 
regulations set the requirements for measuremen ts of quantity for trade purposes (legal 
metrology).  WT/TPR/S/324 • South Africa 
 
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  Table 3.3 Legislation upon which some technical regulations are based, 2015  
Department Legislation Products 
Agriculture, Forestry and Fisheries   
 Fertilizers, Farm Feeds, Agricultural 
Remedies, and Stock Remedies Act 
(Act No. 36 of 1947) Agricultural remedies, stock remedies, farm 
feeds, and fertilizers 
 Agricultural Product Standards Act 
(Act No. 119 of 1990) 
Meat Safety Act (Act No. 40 of 2000) 
 
Liquor Products Act (Act No. 60 of 
1989) Fruit, vegetables, fl owers, red meat, and 
poultry, dairy produc ts, grains, processed 
fruits and vegetables, organically produced 
products, fresh (raw) meat 
Wines, spirits, brandies, whiskies, 
sacramental liquor, sparkling wines, fortified 
wines, cream liquor, and certain ciders 
 Genetically Modified Organisms Act 
(Act No. 15 of 1997)  GM agricultural crops, plants, and animals 
 Agricultural Pests Act, 1983 (Act No. 
36 of 1983) Fruit and vegetables, plants, plant product 
pathogens, insects, exotic animals (as 
defined in the Act), growth mediums, 
infectious items, honey, beeswax and used 
apiary equipment, and vegetative materials 
of all fruits and ornamental plants 
 Plant Improvement Act (Act No. 53 of 
1976) 
Plant Breeders' Rights Act (Act No. 15 
of 1976) 
Animal Diseases Act, 1984 (Act No. 
35 of 1984) 
NRCS Act, 2008 (Act No. 5 of 2008) Plant  genetic material 
Any animal, animal product (including 
meat), parasite 
 
Fish and fishery products, canned meats 
Health   
 Health Act (Act No. 63 of 1977) 
Foodstuffs, Cosmetics and 
Disinfectants Act (Act No. 54 of 1972) Foodstuffs, food labels, food premises, food 
irradiation, food biotechnology and 
toxicology, food additives and contaminants, 
and safety of street foods 
 Hazardous Substances Act (Act No. 
15 of 1973) 
International Health Regulations Act 
(Act No. 28 of 1974) Ionizing radiation products and non-ionizing 
radiation products (e.g. certain electronic 
products, radioactive materials, and radio 
nuclides) 
Medical devices (active electro-magnetic and 
passive), hazardous, and radioactive 
substances 
 Medicines and Related Substances 
Control Act (Act No. 101 of 1965) 
 
NRCS Act, 2008 (Act No. 5 of 2008) Medicines and medical devices 
Food, water, and hazardous by-products 
 
Health certification of fish and fishery 
products, canned meat 
Labour   
 Occupational Health and Safety Act 
(Act No. 85 of 1993) 
 
 
 
NRCS Act, 2008 (Act No. 5 of 2008) Workplace products (e.g. driven machinery, 
general machinery, electrical, vessels under 
pressure, and chemical substances) 
Explosives and major hazard installations 
and construction work 
Regulation of personal protection equipment 
Water Affairs   
 National Water Act (Act No. 36 of 
1998) 
Water Services Act (Act No. 108 of 
1997) Water 
Environmental Affairs and Tourism   
 National Environmental Management 
Act (Act No. 107 of 1998) Plastic bags, waste tyres, and asbestos 
products 
 National Environmental Management 
Air Quality Act (Act No. 39 of 2004) Ambient air qual ity standards 
Source emission standards WT/TPR/S/324 • South Africa 
 
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  Department Legislation Products 
 National Environmental Management 
Protected Areas (Act No. 57 of 2003 
as amended) Management of national protected areas 
Restricts activities that can be conducted in 
protected areas such as mining 
 National Environment Management 
Biodiversity Act (Act No. 10 of 2004) Ensures equitable and sustainable use of 
natural resources to contribute to economic 
development; trade and use of threatened 
and protected species;  access and benefit 
sharing; draft regulations for international 
trade in wild fauna and flora cover the 
import and export of alien species 
Transport   
 Merchant Shipping Act (Act No. 57 of 
1951) 
South African Maritime Safety 
Authority Act (Act No. 5 of 1998) Sea-going vessels, small craft, leisure craft, 
navigational aids, buoys for use at sea, 
breakwater obstacles, maritime safety 
equipment, safety vests, vessel/personal 
position distress sign alling units, radio 
communication equipment, and vessel traffic 
systems 
 Aviation Act (Act No. 74 of 1962) Aircraft and avionics equipment 
Dangerous goods packaging, packaged 
goods vehicles, tankers, etc. 
 National Road Traffic Act (Act No. 93 
of 1996) Safety, health, and environmental aspects of 
transport of dangerous goods by roads 
 National Railway Safety Regulator Act 
(Act No. 16 of 2002) 
 
NRCS Act, 2008 (Act No. 5 of 2008) Safety, health, and environmental aspects of 
transport of dangerous goods by rail 
 
Homologation of vehicles, regulation of 
critical safety components in vehicles 
Trade and Industry   
 Standards Act (Act No. 29 of 1993) Automotive products, food, electrical and 
electronic equipmen t, and personal 
protective items 
 Legal  Metrology Act (Act No. 9 of 
2014 Measuring instrument s, and marking of 
packaging with prescribed mass and volume 
and ensuring fair trade  
 National Building  Regulations and 
Building Standards Act (Act No. 103 
of 1977) Ensuring uniform understanding and 
application of the Act  
 Gambling Act (Act No. 7 of 2004) Gaming equipment 
 Liquor Act (Act No. 59 of 2003) Liquor products 
 Consumer Protection Act (Act No. 68 
of 2008) 
 
NRCS Act, 2008 (Act No. 5 of 2008) Consumer products 
 
 
Regulates products and processes relating to 
public safety, health, and the environment 
Energy    
 Mineral and Petroleum Resources 
Development Act (No. 28 of 2002) Mining equipment and petroleum products 
 Petroleum Products Act (Act No. 120 
of 1977) Petroleum products 
 Gas Act (No. 48 of 2001) Gas 
 Nuclear Regulation Act (Act No. 47 of 
1999) Nuclear energy 
 Electricity Regulation Act (Act No. 4 of 
2006) Electricity and electrical equipment 
Mineral Resources    
 Mineral and Petroleum Resources 
Development Act (Act No. 28 of 2002) Mining equipment  WT/TPR/S/324 • South Africa 
 
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  Department Legislation Products 
Telecommunications 
and Postal services    
 Independent Communications 
Authority of South Africa Act (Act No. 
13 of 2000) Communication equipment 
Source:  Information provided by the South African authorities.  
3.29.  Any person or organization may submit a request, in writing, to the NRCS for the 
development or amendment of a technical regulation with the necessary justification. The 
development, amendment and review of a technical re gulation require the availability of a national 
standard that can be referenced. The NRCS may de clare a SANS, or a provision of a SANS to be 
compulsory.  
3.30.  If a SANS is not available, SABS may be re quested to develop or adopt such a standard. In 
this case, the NRCS can develop or amend a compulsory specification to contain the administrative requirements in the regulation. The process follo wed involves extensive consultation with all 
identified stakeholders at all stages in the process.
4 The main steps are: 
 Feasibility study to check whether a relevant SANS is available; 
 Investigation and research by a nominated technical expert group; 
 Impact assessment; 
 Drafting of proposed regulation; 
 Approval by the relevant committee; 
 Publication in the Government Gazette for public scrutiny, comments and objections during a 
period of not less than 2 months (any person or body including WTO Member States may 
comment on or object in writing); 
 Notification to the WTO;  
 Consideration of submissions by a review committee (the committee may recommend 
changes based on the submissions received); 
 Ministerial approval; and 
 Promulgation in the Government Gazette. 
3.31.  Technical regulations apply equally to imports and locally produced goods. Conformity 
assessment is undertaken by service providers that  comply with the NRCS' policy on conformity 
assessment.  The NRCS approves products to be released into the market when it is satisfied that 
the products are compliant with the technical requirements. Products (imported or produced 
locally) are tested or inspected by various laboratories or inspection bodies. 
3.32.  New or amended compulsory specifications take effect at least 2 months after the date of 
their promulgation. The period may be extended where justified by market conditions, costs of 
new investment by industry and many other factors including impact on SMEs and exports. Compulsory specifications are periodically reviewed for continued relevance and applicability in line with national interests. 
                                               
4 Online information. Viewed at: http://www.nrcs.org.za/content_main.asp?menuID=28#1 .  WT/TPR/S/324 • South Africa 
 
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  3.1.4  Sanitary and phytosanitary requirements 
3.1.4.1  Legal and institutional framework 3.33.  South Africa's SPS regime pursues the obje ctives of enhancing and strengthening its ability 
to satisfy its obligations under the WTO SPS Agreement; providing adequate protection against 
risks threatening human, animal and plant life an d health; and enhancing its competitiveness to 
fully benefit from market access opportunities. A comprehensive strategy was rolled out in 2014, with a view to providing an overarching framework that aims to support those objectives.  
3.34.  The legislative framework is characteri zed by a large number of laws and regulations 
(Table 3.4). This situation bears the risk of overlapping jurisdictions and may lead to unnecessary complexity. The authorities indicated that several pieces of SPS legislation are under review to ensure consistency with good practices.  
Table 3.4 List of applicable SPS legislation 
Act Act No. and year 
promulgated Administering 
Summary Dept./Agency Directorate/ 
Cluster 
Agricultural 
Pests Act Act No. 36 of 
1983 DAFF DPH Provides for measures by 
which agricultural pests may be prevented and combated 
Agricultural 
Product 
Standards Act Act No. 119 of 
1990 DAFF FSQA Provides control over the 
sale and export of certain 
agricultural products 
Animal Diseases Act Act No. 35 of 
1984 DAFF DAH Provides for the control of 
animal diseases and parasites and provides measures for the promotion of animal health 
Fertilizers, Farm 
Feeds, 
Agricultural 
Remedies and 
Stock Remedies 
Act Act No. 36 of 
1947 DAFF DAIC Provides for the 
registration of  fertilizers, 
farm feeds, agricultural 
remedies, sterilizing plants, 
and pest control operators 
among others 
Foodstuffs, 
Cosmetics and Disinfectants Act Act No. 54 of 
1972 DoH Food Control Controls the sale, 
manufacture and importation and exportation of foodstuffs, 
cosmetics and disinfectants 
Liquor Products 
Act Act No. 60 of 
1989 DAFF FSQA Provides for control over 
the sale of certain alcoholic 
products 
Meat Safety Act Act No. 40 of 
2000 DAFF Veterinary Public 
Health Provides for measures to 
promote meat safety and the safety of animal products 
Medicines and 
Related 
Substances Act Act No. 101 of 
1965 DoH Medicines 
Regulatory Affairs Provides for the 
registration of medicines 
intended for human and 
animal use 
National Regulator for Compulsory Specifications Act Act No. 5 of 2008 DTI NRCS Provides for the existence 
of the NRCS, which is responsible for compulsory standards regarding certain forms of meat and fish 
Source: Department of Agriculture, Forestry and Fisheries (2014). 
3.35.  SPS issues are the responsibility of the De partment of Agriculture, Forestry, and Fisheries 
(DAFF), together with the Department of Health (DoH), and the National Regulator for Compulsory 
Specifications (NRCS). The Directorate of Animal Health (DAH) is the national contact point for the 
OIE, the Directorate of Plant Health (DPH) for th e IPPC, and the Directorate of Food Safety and 
Quality Assurance (FSQA) for the Codex Alimentarius. According to the authorities, when WT/TPR/S/324 • South Africa 
 
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  developing its SPS measures, South Africa relies mostly on science and harmonization with 
existing international standards.  
3.36.  Imported food products are subject to a large number of regulations under the Foodstuffs, 
Cosmetics, and Disinfectants Act. The regulations cover issues such as contaminants, 
microbiological standards, hazard analysis and critical control point systems (Table A3.1).  
3.37.  Monitoring and surveillance activities are implemented by the DAFF, and specific 
programmes are in place for fruit fly to ensure early detection of the pest at the border and in fruit 
producing areas. Similar programmes are also in place to counter foot-and-mouth disease (FMD). 
3.38.  South Africa runs an extensive network of  laboratory services, under the auspices of the 
DAFF and the DoH. Their domains of responsibility cover detection of diseases and pests, chemical 
residues, additives and microbiological contaminants. In principle, laboratory services provided by 
DAFF and DoH are sub-contracted to authorized testing facilities at various parastatal institutions 
and universities, as well as in the private sector.   
3.39.  In order to provide coordinated border inspection by the DAFF and DoH's competent 
services, South Africa has established the Border Control Operational Coordinating Committee 
(BCOCC), a coordination platform which includes South Africa Police Services (SAPS) and South Africa Revenue Services (SARS). South Africa has not entered into any formal equivalence 
agreements with its trading partners.  
3.1.4.2  Main SPS requirements 3.40.  All imported animal, plant, and food products, including those from other SACU countries, 
must meet South Africa's sanitary and phytosanitary requirements. If a consignment does not 
meet the import requirements, risk management measures will be undertaken, i.e. the 
consignment may be treated and released, sent back to the country of origin, or destroyed. An extensive appeal system is available under most of the SPS laws.  
3.41.  Importation of controlled goods as listed in the Agricultural Pests Act (i.e. any live or dead 
part of a plant, pathogen, insect, exotic anim al, growth medium, infectious material, honey, 
beeswax, used apiary equipment, or anything determined by the Department of Agriculture, 
Forestry, and Fisheries by notice in the Gazette) requires a permit issued by the DAFF. According 
to the authorities, any determination by the Department of Agriculture should be based on risk assessment. The importation of controlled goods may also be subject to specific phytosanitary measures as indicated on the permit or as published in the Government Gazette (fumigation, for 
instance). A permit may be denied if a pest risk  analysis (PRA) has not yet been concluded, or 
negotiations on risk mitigation measures ha ve not yet been concluded with the competent 
authorities in the country of production. 
3.42.  The Minister may, by notice in the Gazette , determine that any controlled good or class of 
controlled good may be imported into South Africa without a permit, subject to conditions set out in that notice. 
3.43.  Under the Animal Diseases Act (Act No. 35 of 1984) any animal or animal product (including 
meat, but excluding invertebrates) may only be imported into South Africa once a permit and a veterinary certificate have been issued by the Directorate of Animal Health, and the conditions 
stipulated in both documents have been complied with. The conditions stipulated on the permit 
and veterinary health certificates vary according to the risk of importing the different commodities 
from individual exporting countries. The decision on whether to issue these documents is based on information provided by World Organisation for Animal Health (OIE) and information received from 
the exporting country, as well as the risk assessm ent outcome. The permit defines the "place of 
entry" and the period within which the importation is to take place.  
3.44.  The Act contains a list of controlled diseases. Once animals have tested positive for one of 
these diseases, the Act prescribes specific measures that should be taken. Diseases on this list 
include foot-and-mouth disease (cloven hoofed an imals), Newcastle disease (poultry and birds), 
rabies (all animals), salmonella (poultry and birds), rinderpest (cloven hoofed animals, especially cattle), and tuberculosis (all animals except fish, reptiles and amphibians). WT/TPR/S/324 • South Africa 
 
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  3.45.  For meat products, additional import requirements set by the Directorate of Veterinary 
Public Health with respect to the slaughtering procedures and abattoirs of the exporting country 
must be complied with. Permits for meat products may only be issued if they are imported from a place approved by the National Executive Officer by  notice in the Gazette. Meat must be stored at 
an approved facility until the prescribed veterina ry procedures are performed, and the meat is 
inspected, sampled, and/or tested. These procedures  vary according to the origin of the meat. The 
executive officer might in the "public interest" suspend or withdraw a permit, or impose new or 
additional conditions on a permit.  
3.1.4.3  Genetically modified organisms (GMOs) 3.46.  The regulatory framework for GMOs is th e Genetically Modified Organisms (GMO) Act, 1997 
(No. 15 of 1997) and its Regulations. The legislatio n provides that safety assessments should be 
conducted for every proposed GMO activity. The Act provides a framework to ensure that all 
activities involving the use of GMOs are carried out in a responsible way while limiting possible adverse impacts on the environment, and on human and animal health. In addition to the GMO 
Act, the following pieces of legislation also co nsider biosafety issues: National Environmental 
Management Act of 1998, National Environmental Management Biodiversity Act No. 10 of 2004, and Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972. 
3.47.  In order to give effect to the 2000 Cartagena Biosafety Protocol, the Genetically Modified 
Organisms (GMO) Act was amended in 2006; and the Amendment Act, as well as related regulations came into operation in February 2010. The new legislation seeks to provide for the "responsible development, production, use and application of GMOs", as well as an "adequate level 
of protection" during all activities involving GMOs that may have an adverse impact on the 
conservation and sustainable use of biological diversity, and human and animal health. In addition, it seeks to ensure that, inter alia , GMOs do not present a hazard to the environment, and to 
establish appropriate procedures for the notification of specific activities involving the use of 
GMOs. 
3.48.  Under the new legislative framework, any activity with GMOs, including importation, 
exportation, transit, development, production, release, and distribution, is not allowed in 
South Africa without a permit for that activity. However, an import permit is not required for 
organisms that are used under conditions of contained use, i.e. within a facility, installation or other physical structure, and that are controlled by specific measures that effectively limit contact 
of the GMOs with humans, animals and the external environment and their impact on humans. 
3.49.  The GMO Act makes provision for the appo intment of a Registrar, inspectors and two 
regulatory bodies i.e. the Advisory Committee and Executive Council. The Registrar receives all 
applications for activities with GMOs and examines the applications for conformity to the 
requirements of the GMO Act. The Registrar also ha s the responsibility of ensuring that all users 
apply appropriate measures to protect the environment as well as human and animal health during 
activities involving GMOs. The Advisory Committee (AC) is responsible for the assessment of all 
compliant applications with regard to food, feed and environmental impact, following which a recommendation is submitted to the Executive Council (EC). Furthermore the AC acts as a national advisory body on all matters involving GMOs; and also advises the Minister, the Executive Council, 
the Registrar and other ministries or appropriate bodies on matters concerning GMOs.  
3.50.  The EC is the ultimate decision-making bo d y  a n d  i t  c o n s i s t s  o f  m e m b e r s  f r o m  d i f f e r e n t  
government departments appointed by the Minister of Agriculture, Forestry and Fisheries. Before 
taking a decision to permit an activity or not the Council considers, amongst other factors, a 
scientifically based risk assessment, the pr oposed risk management measures and the 
recommendation of the AC.   In addition, the Council advises the Minister on all aspects concerning 
activities relating to GMOs, and ensures that such  activities are performed in accordance with the 
GMO Act. WT/TPR/S/324 • South Africa 
 
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  3.51.  Permit applications have to be submitted to the Registrar in hard and electronic formats. 
The application must include: 
 a scientifically based risk assessment; 
 proposed risk management measures; 
 a copy of the public notice as required under the GMO Regulations; and 
 an assessment of the impact of the proposed activity on the environment and the 
  socio-economic benefits of the activity, if required by the Executive Council. 
3.52.  The application must be accompanied by the prescribed application fee, and the Registrar is 
required to examine it for conformity with the requirements of the GMO Act.  
3.53.  South Africa has approved GMO permits for herbicide-tolerant soybean, maize, and cotton, 
insect-resistant maize and cotton, as well as stacked insect-resistant and herbicide-tolerant maize 
and cotton for commercial release and/or for food and animal feed . 
3.1.4.4  Marking, labelling, and packaging 3.54.  Marking, labelling, and packaging are regula ted through several pieces of legislation, mainly 
the Agricultural Product Standards Act, the Liquor  Products Act, the Merchandise Marks Act, the 
Intellectual Property Laws Amendment Act (No. 38 of 1997), and the Explosives Act. 
3.55.  Marking, labelling, grading and packagin g requirements for imported and domestically 
produced agricultural products are in force under  various regulations of the Agricultural Product 
Standards Act of 1990.  
3.56.  The Minister in charge of agriculture may prescribe the use of a "distinctive mark" on locally 
produced and export products to certify the class or grade (quality and calibration, for example) 
or, in the case of organically produced products, the production method concerned and/or a 
particular management control system. The distinctive marking process is compulsory for some agricultural products (as specified in the Agricultural Product Standards Act). 
3.57.  In general, the information to appear on any label shall be in at least one official language 
of the Republic of South Africa. A container of fo od or agricultural products shall be clearly and 
legibly marked with the following information: the name of the product; the class of the product; 
the name and full physical address of the manuf acturer, producer, or controlling company; the 
mass of the contents as prescribed under the Tr ade Metrology Act; and the names and quantities 
of nutrients as identified in the food fortification programmes and as prescribed under the Foodstuffs, Cosmetics and Disinfectants Act.  
3.58.  Labelling requirements are for consumer protection and information, and for standardization 
purposes. For instance, nutrition labelling must have the heading "Nutrition Information", and should indicate information on the serving size  for certain products and the energy, protein, 
carbohydrate, fat, dietary fibre, and sodium contents, as well as the reference daily intake (RDA). 
Foods for special medical purposes are subject to  additional labelling requirements such as 
nutritional information on amino acid, fat acid, and carbohydrate profile. 
3.59.  The date of manufacture, the identity of the factory in which the product was packed, as 
well as the country of origin must be stated on the label. 
3.60.  Labelling of GMOs is mandatory only in some specified cases, such as when allergens or 
human/animal proteins are present, and when a GM food product "differs significantly" from a non-
GM equivalent. 
3.61.  Foodstuffs which need not bear a list of ingredients include water to which carbon dioxide 
has been added and which has a name indicating th at it has been carbonated; vinegars fermented 
exclusively from a single basic product; dairy products containing only milk, or with only starter WT/TPR/S/324 • South Africa 
 
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  culture or rennet added; any drink under the Sorghum Beer Act, or beer as described in the Liquor 
Act. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 
3.62.  In general, customs requirements and procedures for importers also apply to exporters 
(Section 3.1.1). Exporters must be registered with  the Department of Trade and Industry (DTI) to 
receive export incentives. 
3.2.2  Export taxes, charges, and levies 
3.63.  South Africa collects an export tax of  5% based on the value of exported unpolished 
diamonds, with a view to developing local skills and promoting the domestic industry. Levies also 
apply to domestically produced goods (including thos e destined for export) on a list of agricultural 
products (Section 4.1). 
3.2.3  Export prohibitions, restrictions, and licensing 3.64.  South Africa maintains export control, including export permits (licences) and prohibitions 
on grounds of safety, security, and the environment, and to ensure compliance with international 
obligations under treaties and conventions to which it is a signatory. Export prohibitions apply only to ozone-depleting substances in accordance with the Montreal Protocol. Goods currently subject 
to export control are published in the Government Gazette.
5 Applications are to be filed with the 
ITAC, or the government agency that controls the specific permit in question. 
3.65.  Restrictions on exports are also in place, mainly on SPS grounds, pursuant to, inter alia , the 
Livestock Improvement Amendment Act (Act No. 60 of 1997), the Meat Safety Act (Act No. 40 of 
2000), and the Liquor Products Act (Act No. 60 of 1989). 
3.66.  According to the authorities, for data collection purposes, all sugar exporters must apply for 
an export permit with the Department of Trade and Industry; permits are generally issued 
automatically within 24 hours. 
3.2.4  Export subsidies, finance, and assistance 3.67.  Since its previous review, South Africa's drawback regime (within the SACU framework) has 
not changed. Importers can claim a refund of duties on imports of certain goods incorporated or 
used in goods to be exported. 
3.68.  Industrial Development Zones (IDZs) are important vehicles used by South Africa to 
facilitate investment, create jobs and boost exports, mainly in the manufacturing sector 
(Table A3.2). The IDZs are regulated through the Manufacturing Development Act, under the 
responsibility of the DTI. The DTI defines IDZs as  "purpose built industrial estates, linked to an 
international port or airport, specifically designated for new investment in export-oriented 
industries and related services". Five IDZs are currently in operation: Port Elizabeth (Coega), East 
London, Richards Bay, and Gauteng (Tambo Intern ational Airport), and the Dube Trade Port. Each 
IDZ contains at least one customs control area (CCA) for manufacturing and storage. 
3.69.  The location of the zones is aligned with the Spatial Development Initiative (SDI) 
programme. The SDI programme, adopted in 1995, aims to decentralize development by promoting investment in remote areas of the country with potential for development. 
                                               
5 Online information. Viewed at: http://www.itac.org.za/upload/gg35007_nn92-Export-control-10-Feb-
2012.pdf .  WT/TPR/S/324 • South Africa 
 
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  3.70.  The IDZ regime in South Africa offers the following incentives: 
 Tax incentives: Investors in the zone are permitted to import inputs and equipment 
  duty-free and exempted from value added tax (VAT). In addition, no VAT is payable 
  on electricity and water. 
 Provision of reliable infrastructure and utilities: water, electricity, roads, sewerage, 
  and telecommunication. 
 Streamlined administration and less bureaucracy for investors. 
3.71.  Under the DTI, the Export Marketing and Investment Assistance (EMIA) scheme 
compensates exporters for the costs involved in  developing export markets for South African 
products and services. It aims to assist South African exporters gain access to new markets. The scheme is administered by Trade and Investment South Africa's (TISA) export promotion unit. The 
EMIA offers exporters incentives and financial assistance with market research, trade missions, 
and showcasing products and services at international exhibitions, among other activities. Costs covered can include exhibition fees, stand construction, travel and daily allowances. 
3.72.  Several other incentive schemes remain available to South African exporters for the 
promotion and development of exports and export markets (Table A3.2). 
3.73.  The Export Promotion Directorate of the DTI is responsible for supporting South Africa's 
exports of goods and services by providing info rmation on export markets and opportunities, and 
issuing country reports, market surveys, and book lets on the export process, quality and other 
standards, and e-commerce.  
3.74.  Under the Export Credit and Foreign Investment Re-Insurance Amendment Act, 1957 
(Act No. 78 of 1957), the Export Credit Insurance Corporation of South Africa (ECIC) provides 
export credit insurance for goods and services.  
3.75.  Insurance cover is provided for losses arising from political risk, expropriation, loss incurred 
due to any action taken by the host government th at prevents the conversion of a local currency, 
war and civil disturbance, breach of contract, protracted default, and insolvency. The ECIC provides insurance for credits of a minimum of tw o years, up to a maximum of ten years. Credit 
insurance covers up to 90% of the contract value, but it is contingent on a national content of at 
least 50% of the value of the export. 
3.3  Measures Affecting Production and Trade 3.3.1  Incentives 
3.76.  South Africa's core incentives policy seeks to promote, inter alia , broad economic 
participation by all South Africans, in particular by providing historically disadvantaged persons (HDPs) with opportunities, and economic competitiveness. The Government offers various 
incentive programmes targeted at specific sectors or types of business activities (Table A3.2). 
South Africa's incentives regime is managed through a multi-level (national and provincial) approach, involving the DTI, the Industrial Deve lopment Cooperation (IDC), the Small Enterprise 
Development Agency (SEDA), and the Development Bank of Southern Africa (DBSA). Under the 
DTI, the Enterprise Organization is in charge of managing incentives for the development of competitive enterprises in line with national pr iorities. The DTI coordinates incentives programmes 
nationally and provincially between the various government agencies. 
3.77.  The incentives are largely provided under the Small, Medium and Micro-sized Enterprises 
(SMME) and the Industrial Development Financial Assistance (IDFA) schemes.  Programmes under 
the SMME mostly contribute to the implementation of the Broad-Based Black Economic 
Empowerment Act (BBBEE Act). The BBBEE Act seeks to correct non-participation in the economy 
by historically disadvantaged communities.  
3.78.  An important sub-component of the IDFA is the Industrial Development Zones (IDZs) 
incentives (Section 3.2).  WT/TPR/S/324 • South Africa 
 
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  3.3.2  Competition policy and price controls 
3.3.2.1  Competition policy 3.79.  South Africa's competition regime is governed by the Competition Act of 1998, as amended. 
The institutional structure of the competition policy comprises: the Competition Commission 
(CCSA), the Competition Tribunal, and the Competition Appeal Court. The Commission is in charge 
of investigating, controlling and evaluating restrictive business practices, abuse of dominant positions and intermediate mergers. The Tribunal is the adjudicative body; it adjudicates on 
complaints of prohibited conduct, authorizes or prohibits large mergers, and adjudicates on 
appeals against the Commission's decisions on intermediate mergers and exemptions. The Competition Appeal Court considers appeals against decisions of the Tribunal.  
3.80.  South Africa's competition regime seeks to: promote economic efficiency, adaptability, and 
development; provide consumers with competitive prices and product choices; promote 
employment and general socio-economic welfare; promote a greater spread of ownership within the economy, in particular by increasing owners hip by historically disadvantaged individuals; 
ensure that small businesses have an equitable opportunity to participate in the economy; and 
expand opportunities for South African participation in world markets, while recognizing the role of foreign competition within South Africa.  
3.81.  The Act applies broadly across the economy, including the public sector; however, the 
Competition Commission has the right to exempt firms from the application of the Competition Act. Exemptions are granted by the Commission if an agreement or practice contributes to the following objectives: export promotion; assisting SMEs and historically disadvantaged persons to 
become competitive; stopping the decline of an industry; or protecting the stability of any industry 
designated by the Minister in charge of industry. 
3.82.  The Act regulates various anti-competitive behaviours, including restrictive practices (such 
as price fixing, predatory pricing and collusive te ndering), and abuses by dominant firms (firms 
with a market share of 35% or more). A firm with a market share of over 45% is conclusively considered dominant. A firm with a market shar e of between 35% and 45% is presumed to be 
dominant, but the firm may rebut that presumption by showing it does not have market power. If 
the firm's share is below 35%, the enforcer has the burden of showing that it has market power. Any firm that actually has market power, i.e. the power to control prices, or to exclude competitors 
or to behave to an appreciable extent independen tly of its competitors, customers or suppliers is 
considered dominant, regardless of its market share. The Act also establishes a notification and 
prior approval procedure for certain mergers and acquisitions, and imposes penalties for breaching the law. It covers economic activities in South Africa, as well as those overseas with an effect in 
the country. 
3.83.  Intermediate and large merging parties must notify the Commission of a merger before it is 
implemented. A merger is considered as intermedia te, if the value of the proposed merger equals 
or exceeds R 560 million (calculated by either comb ining the annual turnover of both firms or their 
assets), and the annual turnover or asset value of the transferred/target firm is at least R 80 million. If the combined annual turnover  or assets of both the acquiring and 
transferred/target firms are valued at or above R 6.6 billion, and the annual turnover or asset 
value of the transferred/target firm is at least R 190 million, the merger must be notified to the 
Competition Commission as a large merger. Small mergers may be notified voluntarily or upon the CCSA's instruction. 
3.84.  Between April 2013 and March 2014, 320 mergers were notified, of which 65% were 
intermediate mergers, 5% were small mergers,  and the remaining 30% were large mergers. 
302 mergers were approved unconditionally, while the remainder were subject to conditions to 
address public interest concerns, mainly protection of employment. No mergers were prohibited by 
the Tribunal.
6  
3.85.  The prohibition on the abuse of a dominant  position targets a list of prohibited practices 
(abuses). Two of those practices are prohibited per se , without considering net competitive effects: 
                                               
6 Online information. Viewed at: http://www.competitionchronicle.com/2015/02/2014-south-african-
antitrustcompetition-marketing-law-year-in-review/ . WT/TPR/S/324 • South Africa 
 
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  (a) charging an "excessive price" that harms consumers; and (b) refusing a competitor access to 
an essential facility (provided it is economically feasible to grant access). The other forbidden practices might be permitted if the terms for exemption under the Competition Act are met. 
3.86.  South Africa's Competition Commission is involved in international frameworks such as the 
International Competition Network (ICN), the Co mpetition Committee of the OECD, and UNCTAD. 
In addition, it participates in a collaborat ive framework between SACU members' national 
competition authorities.  
3.87.  The Competition Amendment Act of 2009 was brought into force in 2013. It introduces new 
measures such as, criminal sanctions against directors and managers who participate in cartel conduct, a market inquiry provision to allow the Competition Commission to conduct formal enquiries into the state of competition in a particular market, a provision to investigate and 
prohibit "complex monopoly conduct", and leniency provisions to protect whistle-blower firms or 
individuals. 
3.88.  The provision on "complex monopoly" conduc t is intended to combat the anti-competitive 
behaviour of firms in highly concentrated markets such as cement, telecommunications, fertilizers, 
or chemicals. The need for this provision arose because the Competition Act only targets specific violations and does not address the results of anti-competitive behaviour not considered as an 
infringement in the Act. 
3.89.  Complex monopoly occurs where two or more firms act in a cooperative manner or conduct 
their business affairs in a coordinated way without specific contact or agreement e.g. parallel pricing, common trading policies, exploitative pricing to downstream players/consumers. 
3.90.  Under the amendments to the Act, complex monopoly conduct exists in a market if: (a) at 
least 75% of the goods or services in that market are supplied to, or by, five or fewer firms; (b) any two or more of the firms conduct their respective business affairs in a parallel conscious 
manner or co-ordinated manner, without agreement between or among themselves; and (c) the 
conduct contemplated in paragraph (b) has the effect of substantially preventing or lessening competition in that market, unless a firm engaging in the conduct can prove that any 
technological, efficiency or other pro-competitive gain resulting from it outweighs that effect.  
3.91.  The Commission is empowered to initiate an investigation into what it believes to be 
complex monopoly conduct without having received a complaint from a customer or competitor. 
3.92.  The Commission is also granted the powe r by the Amendment Act to undertake a market 
enquiry in a specific sector. Additionally, it is empowered to conduct dawn raids in relation to a 
market inquiry. Such an inquiry may be initiated in response to a request by the Minister, or the Commission can decide to undertake a market inquiry by simply publishing a notice in the 
Government Gazette, even without having received any complaints. 
3.93.  A market enquiry may lead to a complaint being settled with the Commission or 
immediately referred to the Tribunal, or to a change/amendment to legislation in the sector 
reviewed. 
3.94.  A competitive neutrality framework is in place in South Africa, as the Competition Act 
applies to all economic activities within, or having an effect within South Africa . In addition, enforcement actions by the Competition Commission and the Competition Tribunal imply the 
relative effectiveness of South Africa's compet itive neutrality framework. A number of cases 
recently investigated by the competition author ities support the argument. In 2012, for example, 
the Competition Tribunal found that Telkom contravened sections 8(b) and 8(d)(i) of the 
Competition Act by not supplying access to an essential facility to value-added network service 
providers and inducing customers not to deal with  Telkom's competitors. The Tribunal imposed an 
administrative penalty of R 449 million on Telkom for the contraventions.
7 
                                               
7 Online information. Viewed at: http://www.compcom.co.za/wp-content/uploads/2014/09/State-
owned-entities-and -competition-8th-Annual- Competition-Conferen ce-2014-Aproskie-Hendr iksz-and-Kolobe.pdf .  WT/TPR/S/324 • South Africa 
 
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  3.3.2.2  Price control 
3.95.  In general, prices in South Africa are market-determined. Guideline prices, for agricultural 
products subject to levies, continue to be determined under the Marketing of Agricultural Products Act (Act No. 47 of 1996), to ensure that the levy does not exceed 5% of the actual price. Guideline 
prices are determined for the wine industries, milk and dairy products, as well as cotton lint. 
3.96.  Pricing of services provided by state-owne d companies such as electricity, reserved postal 
services, water supply, as well as interconnection services in telecommunication, and marketing of 
fuel are also regulated in South Africa (Section 4). 
3.3.3  State trading, state-owne d enterprises, and privatization 
3.97.  According to South Africa's latest notification, submitted to the WTO in 2014, there are no 
state-trading enterprises (STEs) in operation in South Africa, pursuant to the provisions of 
Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding on the Interpretation of 
Article XVII.
8 
3.98.  State-owned enterprises (SOEs) continue to  play a pivotal role in South Africa's economy 
(Table 3.5). Eight major SOEs (Alexkor, Broadband Infraco, Denel, Eskom, South African Forestry 
Company, South African Airways, South African Express, and Transnet) fall under the jurisdiction of the Department of Public Entities (DPE). Th e oversight of the remaining SOEs is dispersed 
across a number of line ministries including telecommunications, agriculture, transport, water 
affairs, defence, trade and industry, minerals an d energy, and finance. The DPE is responsible for 
reporting to the Cabinet which in turn reports to the Parliament. The Ministry of Finance and Treasury plays a financial oversight role.  
Table 3.5 State-owned enterprises, 2015
 
SOE Activity Share owned by the 
State (%) 
Air Traffic and Navigation Services Co mpany Ltd.  Air transport control ..  
Airports Company South Africa (ACSA) Air transport services .. 
Alexkora Alluvial diamond mining 100 
Arivia IT provider .. 
Armaments Corporation of South Africa Ltd. 
(ARMSCOR) Armament procurement  100 
Aventura Holiday resorts .. 
Broadband Infracoa Telecom ..  
Central Energy Fund (CEF) Energy 100 
Denela Defence-related 
manufacturing 100 
Electricity Distribution Industry Holdings (EDI) Electricity .. 
Eskoma Electricity supply 100 
Industrial Development Corporation (Ltd.) (IDC) Industrial development .. 
Ithala Development Finance Corporat ion (Ltd.) Financial and property 
services .. 
Land and Agricultural Development Bank of South 
Africa (Land Bank) Financial services .. 
Limpopo Economic Deve lopment Enterprise 
(Limdev) Financial services ..  
National Energy Regulator (NERSA) Electricity, gas pipes, and 
petroleum pipeline .. 
National Housing Finance Corporation (NHFC) Financial services ..  
Pebble Bed Modular Reactor (Pty) Ltd. (PBMR)a Nuclear power generation 64 
Petroleum, Oil, and Gas Corporation of South 
Africa (Pty) Ltd. (PetroSA)  Hydrocarbons provider ..  
                                               
8 WTO document G/STR/N/15/ZAF, 17 March 2014. WT/TPR/S/324 • South Africa 
 
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  SOE Activity Share owned by the 
State (%) 
Public Investment Corporation (PIC) Investment management 100 
SA Express (SAX)a Air transport 100 
South African Forestry Company Ltd. (SAFCOL)a Forestry 100 
Small Enterprise Development Agen cy (SEDA) Enterprise support ..  
South African Airways (SAA)a Air transport 95 
South African Broadcasting Corpor ation (SABC) Broadcasting  ..  
South African Post Office (SAPO) Postal services .. 
South African Rail Commuter Corporation 
(SARCC) Rail commuting ..  
Telkom Telecoms 38.9 
Transneta Port and rail infrastructure  100 
.. Not available. 
a Managed by the Department  of Public Enterprises. 
Source: WTO document WT/TPR/S/222/ZAF, 14 December 2009; and information provided by the 
South African authorities. 
3.99.  SOEs are regulated through various pieces of legislation, including mainly: the Companies 
Act, the Public Finance Management Act (PFMA) (1999), Treasury Regulations (TR), sector-specific 
legislation (e.g. Electricity Act, Electronic Communications Act), and the Public Audit Act. The PFMA 
provides the financial framework that gives managerial and operational autonomy to SOEs. It also establishes "the shareholder compact", a reportin g mechanism to strengthen the accountability of 
the board of directors to the shareholders. Depending on their commercial or non-commercial 
objectives, the PFMA categorizes SOEs according to "Schedules".  
3.100.  Schedule 1 of the PFMA lists constitutional institutions, such as the Municipal Demarcation 
Board or the Commission for Gender Equality; "government business enterprises" are listed in 
Schedule 2, and mainly comprise SOEs in which the State is the sole shareholder, for example 
Transnet and ESKOM, as well as companies in wh ich the State owns a partial share, for example, 
Telkom, the Development Bank of Southern Africa or the Industrial Development Corporation; and 
Schedule 3A lists public entities such as servic e delivery entities, stewardship bodies, regulators 
and advisory bodies, for example, museums, the National Energy Regulator and the Human 
Sciences Research Council, as well as statutory corporations such as Rand Water and the South African Bureau of Standards.  
3.101.  There is no clear privatization programme in place. Emphasis is rather placed on efforts to 
make SOEs more efficient and financially sustainable. In 2010, a Presidential SOE Review Committee (PRC) was established with the aim of strengthening the role of SOEs to ensure that 
they respond to a clearly defined public mandate, as well as to support the developmental 
ambitions of the Government. As a consequence, the long-term National Development Plan and the Medium-Term Strategic Framework for 2009-14 place SOEs and state-owned development 
finance institutions at the heart of the economic development agenda. 
3.3.4  Government procurement 3.102.  In 2012, public procurement accounted for 7.4% of GDP.
9 During the review period, the 
government procurement regime did not undergo su bstantial changes in South Africa. The regime 
attaches considerable importance to preferences for domestic suppliers, in particular the 
previously disadvantaged groups of the populati on. Foreign firms may only bid through a local 
agent. 
3.103.  The overall public procurement system remains largely decentralized, as government 
departments or public entities determine and regulate their own procurement systems. However, such regulations must be in compliance with a number of overriding requirements enshrined in 
various pieces of legislation (Table 3.6). Since 2003, South Africa has maintained a public sector 
                                               
9 Online information. Viewed at: 
https://www.thedti.gov.za/industrial_dev elopment/docs/nipp/Nip_Guidelines2013.pdf .  WT/TPR/S/324 • South Africa 
 
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  supply chain management (SCM) system to ensure uniformity in bidding, contract documentation, 
and procedure standards, with a view to adding value at each stage of the procurement process. 
Table 3.6 Main procurement legislation 
Act Objectives 
Public Finance Management Act 1 of 1999 Establishes a regulatory framework for SCM, which 
includes procurement in national and provincial departments and state- owned enterprises. 
Promotion of Administrative Justice Act 3 of 2000 Establishes fair administrative procedures, permits 
those affected by unfair administrative action to 
request reasons for such ad ministrative action and 
requires administrators to respond to such requests. 
(Administrative actions are presumed to have been 
taken without good cause wh ere an administrator fails 
to respond within the prescribed period). 
 
Provides for procedures for the judicial review of 
administrative actions and remedies in proceedings 
for judicial review, including the prohibition of an 
administrator from acting in a particular manner, 
setting aside the administrative action, correcting the 
defective action and ordering  the administrator to pay 
compensation. 
The Promotion of Equality and the Prevention of 
Unfair Discrimination Act 4 of 2000 Prohibits the State or any person from discriminating 
unfairly against any person on the grounds of race or gender through the denial of access to contractual opportunities for rendering services or by failing to take steps to reasonably accommodate the needs of such persons.  
Preferential Procurement Policy Framework Act 5 of 
2000 Establishes the manner in which preferential 
procurement policies are to be implemented. 
Construction Industry Development Board Act 38 of 2000 Establishes the means by which the Board can 
promote and implement po licies, programmes and 
projects, including thos e aimed at procurement 
reform, standardization and uniformity in procurement documentation, through the establishment of:  
1. a national register of contractors (and if required, 
consultants and suppliers) to manage public sector procurement risk and facili tate public procurement; 
2: a register of projects above a financial value with data relating to contract s awarded and completed and 
a best practice assessment scheme;  3. best practices.  
 
Establishes a code of conduct for the parties engaged in construction procurement.  
Broad-Based Black Economic Empowerment Act 53 of 
2003 Establishes a code of good practice to inform the:  
 development of qualification criteria for the 
issuing of licences or concessions, the sale of 
state-owned enterprises and for entering into 
partnerships with the private sector; and 
 development and implementation of a preferential 
procurement policy. WT/TPR/S/324 • South Africa 
 
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  Act Objectives 
Local Government: Munici pal Finance Management 
Act 56 of 2003 Establishes a regulatory framework for SCM which 
includes procurement in municipalities and municipal entities. 
Prevention and Combating of  Corrupt Activities Act 12 
of 2004 Makes corruption and related activities an offence; 
establishes a Regi ster in order to place certain 
restrictions on persons and enterprises convicted of 
corrupt activities relating to tenders and contracts; 
and places a duty on certain persons holding a 
position of authority to  report certain corrupt 
transactions.  
Source: Intaher M. Ambe and Johanna A. Badenhorst- Weiss (2012), "Procurement Challenges in the South 
African Public Sector", Journal of Transport and Supply Chain Management , Vol. 6, No. 1, pp. 242-
261. 
3.104.  Public procurement rules apply to commercial contracts concluded by organs of state, as 
defined in the Constitution, for the acquisition of  goods and services, and the disposal and letting 
of state assets. Competitive bidding is largely the most used procuring method. Procurement may 
take place by other means, such as price quotations or a limited bidding process, provided that a 
record is kept of the reasons for deviating from an invitation for competitive bids and such reasons are approved by the relevant authority. Tenders are published in the Government Tender Bulletin, 
on ministry websites, and sometimes in local newspapers. 
3.105.  The Constitution of the Republic of South Africa 1996 requires that when an organ of state 
contracts for goods and services, it must follow the principles of fairness, equitability, transparency, competitiveness and cost-effectiveness. Procurement in South Africa is mainly 
regulated by the State Tender Act (Act No. 86 of 1968), and the Public Finance Management Act 
(PFMA). The PFMA is implemented through the regulations published under it, namely the National Treasury Regulations (Treasury Regulations), which introduce norms and standards for 
transparency and expenditure control measures, including best practices to regulate financial 
management in the national and provincial spheres of government. Under the National Treasury Regulations, government agencies must establish three kinds of committee: bid specification, bid 
evaluation, and bid adjudication committees. The bid specification committee is in charge of 
elaborating: the terms of reference, evaluation criteria, and special conditions of procurement contracts. The bid evaluation committee evalua tes bids and makes recommendations to the bid 
adjudication committee, which usually follows them; otherwise it must submit a report within ten 
working days to the National Treasury and the Auditor-General. The Municipal Finance 
Management Act (MFMA) extends the same principles to municipalities. 
3.106.  The Constitution provides for preference s to previously disadvantaged persons; as a 
consequence, the Preferential Procurement Po licy Framework Act 5 of 2000 (PPPFA) and its 2011 
revised regulations prescribe requirements regarding Black Economic Empowerment (BEE) considerations for government procurement. All procurement contracts must comply with the 
PPPFA regardless of value.  
3.107.  In evaluating a tender, out of 100 points, government agencies must allocate 90 to the 
reference price submitted by the tenderer. This is in line with what procurement seeks to achieve, 
namely getting best value for money. The 10 remaining points are allocated in respect of 
previously disadvantaged persons in accordance  with the Black Economic Empowerment (BEE) 
programme depending on ownership, management, and employment goals. Where the contract is below a prescribed threshold value (currently 1 m illion rand), the preference system operates on 
the basis of 80/20 split. The award of preference po ints is tied to a supplier's certified broad-based 
black economic empowerment (BBBEE) status in accordance with the Broad-Based Black Economic Empowerment Act. The higher the BBBEE rating of a supplier, the higher the number of preference 
points awarded. The regulations to the PPPFA give  guidance on how to calculate the points for 
price and categories of preference. The regulation s then require the tender to be awarded to the 
bidder that scores the highest number of points. Exemption from provisions of the PPPFA might be 
justified on grounds of public or national security interests.  
3.108.  A Local Procurement Accord was signed on 31 October 2011 under the New Growth Path 
(NGP) adopted by the Government. The Accord has a target of 75% localization of public and private procurement to accelerate job creation and meet the goals of the Industrial Policy Action WT/TPR/S/324 • South Africa 
 
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  Plan. The Accord is a pact that seeks to boost local industry and create more jobs through localized 
procurement. It was signed by the Government, businesses, and labour unions. Under the Accord, 
the Government is to, inter alia , identify goods (designated products) for local procurement in the 
Preferential Procurement Regulations, add more products to the designated list, and establish 
standards to measure local content.  
3.109.  In December 2011, the Preferential Procurement Regulations came into effect; they 
require all public entities to procure designat ed goods only from South African manufacturers. 
Designated products include: bus bodies, power pylons, rolling stock, canned vegetables, clothing, 
textiles, footwear, leather, set ‐top boxes and oral solid pharmaceuticals. 
3.110.  Under the National Industrial Particip ation Programme (NIPP), all purchases or lease 
contracts for goods and services by Government and SOEs, with an import content equal to or 
exceeding US$10 million or equivalent value, are subject to an industrial participation (IP) 
obligation. This obligation requires the seller/supplier to engage in commercial or industrial activity equal to or exceeding 30% of the import content of total goods purchased under the government 
tender, with the exception of defence-related contracts.
10 The obligation may take the form of 
investments, joint-ventures, sub-contracting, li censed production, export promotion, sourcing 
arrangements, and research and development colla boration. Bidders must submit their projects, 
which should be beneficial to the South African economy, to the Industrial Participation Secretariat 
at the Department of Trade and Industry for approval before implementation. Projects are 
evaluated by two committees: one assesses the tec hnical merit of the proposal and determines 
whether it meets the DTI's and the industry's ob jectives, and the other ensures adherence to the 
principles of the NIPP. Any company is free to object to a decision, and a project can be 
reconsidered based on new information. 
3.111.  The Promotion of Administrative Justice Act 3 of 2000 (PAJA) allows any person to file a 
case before the High Court for the review of an administrative action. The decision to award a 
public contract to a particular party, being an administrative action, is governed by the principles of administrative justice and an unfair decision can be taken to the High Court for review. The court cannot review an administrative decision until all internal remedies provided for under the 
applicable legislation have been exhausted. The regulated authority concerned will have to be a 
party to the litigation.  
3.112.  There is no designated body that revi ews claims of non-compliance with procurement 
legislation. However, the National Treasury, th e Auditor-General and the Public Protector may 
investigate such claims.  
3.113.  A party can apply for and be granted an injunction to stop the organ of state from 
contracting with another party or to prevent the implementation of the contract, pending the 
review of the decision to grant the contract. In many circumstances, if it is found that there has been non-compliance with procurement legislation,  the court may require the regulated authority 
to re-open the procurement procedure. However, this would depend on the consequences of re-
opening the procurement for the delivery of the re levant service by the State. The review of a 
tender can take on average from six months to two years. 
3.114.  South Africa is neither a signatory nor an  observer to the WTO Plurilateral Agreement on 
Government Procurement.  
3.3.5  Intellectual property rights 3.115.  In 2011, the Companies and Intellectual Pr operty Registration Office (CIPRO) and the 
Office of Company and Intellectual Property Enfo rcement (OCIPE) merged to form the Companies 
and Intellectual Property Commission (CIPC). The CIPC  administers South Africa's IPR regime. It is 
responsible for the registration of all IPRs. It keeps records of all patents, trademarks, designs and copyrights that are lodged in South Africa, including details of the owners/proprietors. 
                                               
10 In the case of defence contract s, an additional 50% of the import content (referred to as DIP – 
defence IP) is required. WT/TPR/S/324 • South Africa 
 
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  3.116.  In addition, the CIPC administers treati es and agreements to which South Africa is a 
signatory. These include: the TRIPS Agreement,  the World Intellectual Property Organization 
(WIPO) treaties and conventions, the Paris Conv ention, the Patent Cooperation Treaty, the Berne 
Convention, and the Budapest Treaty. South Africa has not yet concluded its accession to the 
Hague Agreement and the Madrid Protocol. 
3.117.  In 1998, South Africa notified its Checklist of Issues on Enforcement. Various courts have 
jurisdiction over IPR infringement cases. These in clude the various provincial and local divisions of 
the High Court of South Africa (in cases of tr ademark, copyright and design infringement); the 
Court of the Commissioner of Patents (in cases of patent infringement); and the local and regional magistrates' courts of South Africa.
11  
3.118.  IPRs are regulated through several pieces of legislation in South Africa (Table 3.7).  
Table 3.7 Legislation on intellectual property rights, 2015  
Subject and main 
legislation Coverage Duration Selected exclusions and 
limitations 
Copyright and 
related rights    
Copyright Act  (Act 
No. 98 of 1978) as 
amended in 2002 Literary works, musical 
works, artistic works, 
cinematograph films, 
sound recordings, 
broadcasts, programme-
carrying signals, 
published editions and 
computer programs.  Moral rights : non-
transmissible during 
the author's life; 
Economic rights : the 
author's life plus 
50 years (for literary or 
musical works or 
artistic works other 
than photographs);  
Related rights:  
50 years from the end 
of the year in which it 
was first published or 
made available to the 
public. Copyright shall not be infringed by 
any fair dealing for the purposes 
of research, private study and 
use, criticism or review, reporting 
current events, or judicial 
proceedings provided that the 
source is mentioned as well as the 
name of the author.  
Copyright which is lawfully 
available to the public shall not be 
infringed by any quotation 
therefrom.  
The copyright in a lecture or 
address which is delivered in 
public shall not be infringed by 
reproducing it in the press or by 
broadcasting it for informative 
purposes. 
Performers 
Protection Act  
(Act No. 11 of 
1967) as amended 
in 2002 Performances taking 
place, broadcast without a fixation or first fixed in 
South Africa or in a 
country which is a Member of the WTO.  50 years calculated 
from the end of the calendar year in which 
the performance took 
place A performance, a fixation of a 
performance or a reproduction of such a fixation may be used 
without consent being required if 
it is for the purposes of private study or personal use; criticism or review; reporting on current events; teaching or scientific research; or legal proceedings.  
Registration of 
Copyright in 
Cinematographic 
Films Act  (Act No. 
62 of 1977), as 
amended by 
Government Notice 
R1183 in 2006 Registration of copyright 
in cinematograph films 
on a voluntary basis   
                                               
11 WTO document IP/N/6/ZAF/1, 23 February 1998. WT/TPR/S/324 • South Africa 
 
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  Subject and main 
legislation Coverage Duration Selected exclusions and 
limitations 
Trademarks    
Trade Marks Act  
(Act No. 194 of 
1993) A trademark shall be 
capable of distinguishing 
the goods and services 
of a person in respect of 
which it is registered 
from the goods and 
services of another 
person 
 10 years, but may be 
renewed from time to 
time Marks that consist exclusively of a 
sign or an indication which has 
become customary in the current 
language or esta blished practices 
of the trade; if the applicant for 
registration of the mark has no 
claim to proprietorship; 
trademarks that constitute a 
reproduction, imitation or 
translation of a trademark which is 
entitled to protection under the 
Paris Convention as a well-known 
trademark; if the application was 
made mala fide ; marks that 
contain the coat of arms, seal or 
national flag of the South African 
Republic or of any convention 
country; marks that are identical 
to a registered trademark 
belonging to a different proprietor. 
Merchandise Marks 
Act (Act No. 17 of 1941), as amended in 2002  Marking of merchandise 
and of coverings in or with which merchandise is sold, and the use of certain words or emblems in connection with business;  outlaws false description of goods as to quality, kind, origin, measure, ownership, etc.   
Liquor Products Act 
(Act No. 60 of 
1989) Control over the sale 
and production for sale 
of certain alcoholic 
products, control over 
the import and export of 
certain alcoholic 
products   
Geographical 
indications (GIs)    
Sections 42 and 43 
of the Trade Marks 
Act (Act No. 194 of 
1993) Protection of registered 
certification trademarks 
and collective 
trademarks   
Sections 6 and 7 of 
the Merchandise Marks Act (Act No. 17 of 1941) as amended in 2002 Section 6 outlaws the 
false application of a trade description; GIs inherently describe the quality of goods and, thus, if they are falsely applied to goods, that is an offence.  Section 7 outlaws the sale of goods with false descriptions.    
Section 12 of the 
Liquor Products Act 
(Act No. 60 of 
1989) Prohibition of false or 
misleading descriptions 
for liquor products   WT/TPR/S/324 • South Africa 
 
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  Subject and main 
legislation Coverage Duration Selected exclusions and 
limitations 
Industrial 
designs    
Designs Act  (Act 
No. 195 of 1993) Registration of industrial 
designs, which are 
divided into aesthetic 
designs (any design 
applied to any article, 
whether for the pattern 
or the shape or the 
configuration or the 
ornamentation) and 
functional designs that 
include integrated circuit 
topographies and mask 
works. For an aesthetic design 
- 15 years; 
for a functional design 
- 10 years from the 
date of registration or 
from the release date, 
whichever date is 
earlier Designs for articles which are not 
intended to be multiplied by an 
industrial process shall not be 
registered.  
Main criteria for registration:  
 an aesthetic design should 
be new and original; 
 a functional design should 
be new and not 
commonplace in the art 
in question.  
A design is deemed to be new if it 
is different from or if it does not 
form part of the state of the art 
immediately before the date of 
application for registration or the 
release date, whichever is earlier.  
Patents     
Patents Act  (Act 
No. 57 of 1978) as 
amended in 2005 A patent may be granted 
for any new (1) 
invention which involves 
an inventive step (2) 
and which is capable of 
being used or applied 
(3) in trade or industry 
or agriculture 20 years from the date 
of application, subject 
to payment of the 
prescribed renewal 
fees.  
Patent takes effect 
from the date of 
publication.  The following are not patentable 
inventions: a scientific theory; a 
mathematical method; a literary, 
dramatic, musical or artistic work 
or any other aesthetic creation; a 
scheme, rule or method for 
performing a mental act, playing a 
game or doing business; a 
program for a computer; the 
presentation of information; an 
invention or exploitation which 
encourages offensive or immoral 
behaviour; and any variety of 
animal or plant or any essentially 
biological process for the 
production of animals or plants, 
not being a microbiological 
process or the product of such a 
process.  
Nuclear Energy Act 
(Act No. 131 of 1993) Patenting of inventions 
in respect of nuclear material, restricted material, nuclear energy and nuclear related equipment and material   WT/TPR/S/324 • South Africa 
 
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  Subject and main 
legislation Coverage Duration Selected exclusions and 
limitations 
Plant Breeders' 
Rights Act (Act No. 
15 of 1976) 
as amended in 
1996 Every variety of any 
prescribed kind of plant 
if it is new, distinct, 
uniform and stable. 
 25 years, in the case of 
vines and trees; and 
20 years, in all other 
cases, calculated from 
the date on which a 
certificate of 
registration is issued. A person who procured any 
propagating material of a variety 
in a legitimate manner shall not 
infringe the plant breeder’s right 
in respect of the variety if he or 
she: 
a) resells that propagating 
material 
b) uses or multiplies that 
propagating material in the 
development of a different variety 
c) uses that propagating material 
for purposes of bona fide research 
d) uses that propagating material 
for private or non-commercial 
purposes 
e) is a farmer who on land 
occupied by him or her uses 
harvested material obtained on 
such land from that propagating 
material for purposes of 
propagation: provided that 
harvested material obtained from 
the replanted propagating material 
shall not be used for purposes of 
propagation by any person other 
than that farmer. 
Source: WTO Secretariat, based on information provided by the South African authorities. 
3.119.  The main legislative development during  the review period was the approval by the 
President of the Intellectual Property Laws Amendment Act 2013 (Act No. 28 of 2013; it was 
published in the Government Gazette on 10 Decemb er 2013. It amends the Performers' Protection 
Act 1967 (Act No. 11 of 1967), the Copyright Act 1978 (Act No. 98 of 1978), the Trade Marks Act 
1993 (Act No. 194 of 1993); and the Designs Ac t 1993 (Act No. 195 of 1993), to provide for 
effective protection mechanisms for indigenous knowledge as a form of intellectual property in South Africa. 
3.120.  A draft IP policy was published in 2013 for public comments. The main objectives of the 
draft policy include: the development of a framew ork that should empower all stakeholders, the 
improvement of IP enforcement, the promotion of  research and development, the improvement of 
national compliance with treaties, the introduction of a public health aspect perspective into 
national IP laws, the establishment of confidence to attract investments, and the promotion of 
public education and awareness of IP in South Africa. 
3.121.  In accordance with the Patent Act, at an y time after the expiration of 3 years from the 
date of the grant of a patent or 4 years from the date of filing a patent, whichever is later, any 
interested person may apply to the  CIPC for the grant of a licence under the patent, provided that 
a market for the patented invention is not being supplied, is not being supplied on reasonable 
terms in South Africa, or it is in the public interest that a licence or licences should be granted. The 
Patent Act does not cover parallel imports, while the Medicines and Related Substances Act does include enabling provisions for parallel import ation but these have never been used. Some 
stakeholders in health sector find that th is is due to highly cumbersome procedures.
12  
3.122.  The Counterfeit Goods Act (Act No. 37 of 1997) is the main piece of legislation on the 
criminalization of dealing in counterfeits and pirated goods. In addition, some provisions contained in the Trade Marks Act (Act No. 194 of 1993), th e Copyright Act (Act No. 9 of 2002), and the 
Patents Act (No. 57 of 1978) as amended, also provide the legal basis for sanctions against the 
various IPR offences. 
                                               
12 Online information. Viewed at: http://www.pharmatimes.com/article/13-11-
07/S_Africa_pledges_action_on_compulsory_licenses_parallel_imports.aspx .  WT/TPR/S/324 • South Africa 
 
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  3.123.  The maximum fine for first-time violations is up to R 5,000 per item and/or imprisonment 
for up to three years; and the maximum fine for second-time offences is up to R 10,000 and/or imprisonment for up to five year s. Civil suits for damages may also be brought. The Copyright Act 
(Act No. 98 of 1978) also provides for similar penalties for copyright infringement. 
3.124.  The Counterfeit Goods Act allows the Commissioner for Customs and Excise, upon 
application by the property right owner, to seize and detain counterfeit goods or suspected counterfeit goods imported into South Africa. 
3.125.  SARS officials may, under the Customs and Excise Act, detain any goods upon importation 
into South Africa to ascertain whether the goods are indeed counterfeit goods. These actions are carried out on behalf of the DTI under whose authority the Counterfeit Goods Act, 1997 is administered. 
3.126.  Enforcement of IP laws is executed mainly through the Companies and Intellectual 
Property Commission, the DTI's enforcement unit, and commercial crime courts in several cities. In addition, the Government has an interagency counterfeit structure including the DTI, the 
South African Revenue Service, and the South African Police Service to improve coordination of 
IPR enforcement. 
 WT/TPR/S/324 • South Africa 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Overview 4.1.  Agriculture (including livestock, forestry, an d fisheries) contributes to some 2.7% of GDP in 
South Africa. Despite its low contribution to the co untry's GDP, the sector plays an important role 
in terms of employment and livelihood in rural areas. Farming remains vitally important to the economy with 638,000 people formally employed in  2012, and around 8.5 million people directly 
or indirectly dependent on agriculture.  
4.2.  South Africa's agricultural sector is basica lly peri-urban and rural; it is characterized by 
dualism, i.e. well-developed commercial farming, occupying some 86% of agricultural land, with an established supply chain; and a small subsiste nce-based production system. According to the 
OECD, there are less than 40,000 commercial farm s overall (less than 2,500 of them produce 
more than half of the total agricultural output), and 1.2 million subsistence farmers.
1 
4.3.  The conditions for agricultural production are not favourable in most regions due to poor land 
quality, highly variable climatic conditions, and scarce water. While 12% of South Africa's land can 
be used for crop production, only 22% of this is  high-potential arable land. Around 69% of the 
country is covered in permanent meadows and pastures used for grazing. The greatest limitation is 
the availability of water, with uneven and unreliable rainfall. Around 1.3 million hectares are under 
irrigation, and around 50% of South Africa's water is used for agriculture. 
4.4.  Agriculture is one of South Africa's main so urces of foreign earnings, with a contribution of 
about 11% of total exports of goods during the review period. In fact, over one third of total 
agricultural production is exported. South Africa is a net food exporter.  
4.5.  The sector is increasingly facing various challenges, including high input costs, and poor 
information and knowledge management hinderin g the improvement of farming practices among 
small farmers. In addition, subsistence and smallholder farmers are poorly skilled and marginalized 
in terms of accessibility of natural resources (wat er and productive land); this translates into low 
productivity, asset loss and land degradation. 
4.1.2  Policy  
4.6.  The Department of Agriculture, Forestry  and Fisheries (DAFF) is responsible for the 
agricultural sector. DAFF was established in 2009 as a result of a merger between the Department of Agriculture, Water Affairs and Forestry, an d the Department of Environmental Affairs and 
Tourism. Other departments intervening in the sector include the Department of Rural 
Development and Land Reform, the Department of Labour, and the DTI.  
4.7.  The DAFF pursues the strategic objectives of  alleviating poverty, cr eating employment and 
improving food security. In addition, it attaches high importance to the conservation and 
sustainable use of natural resources in the agricultural sector. 
4.8.  The Department's overall responsibilities  include agricultural support services, trade 
promotion in agriculture, and food safety and biosecurity. 
4.9.  Several laws regulate South Africa's agricultural sector (Table 4.1). The Marketing of 
Agricultural Products Act (Act No. 47 of 1996 as amended) remains the main law on agriculture; it aims at, inter alia , improving market access and pr omoting agricultural exports. 
                                               
1 Online information. Viewed at: http://www.oecd.org/site/tadicite/48707890.pdf . WT/TPR/S/324 • South Africa 
 
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  Table 4.1 Selected legisl ation on agriculture, 2015  
Legislation Act No. Description 
Agricultural Credit Amendment 
Act 65 of 1995 Provides for assistance to persons carrying on, or 
undertaking to carry on, farming operations, and for the control of the assistance rendered 
Marketing Amendment Act 188 of 1993 Provides for the introduction of a control system for the 
marketing of agricultural prod ucts; regulates quantitative 
controls over the import or  export of these products 
Marketing of Agricultural 
Products Act  47 of 1996 Establishes and enforces regulatory measures to intervene 
in the marketing of agricult ural products, including the 
introduction of levies on agricultural products; establishes 
a National Agricultural Marketing Council 
Wine and Spirit Control 
Amendment Act  25 of 1998 Regulates the control and management of the wine and 
spirit industry by the Kooperatieve Wijnbouwers 
Vereniging van Zuid-Afrika (KWV) 
Subdivision of Agricultural Land Act  70 of 1970 Regulates the subdivision of agricultural land and its use 
for purposes other than agriculture  
Livestock Improvement 
Amendment Act  60 of 1997 Regulates the collection and sale of semen and ova, and 
the artificial insemination and inoculation of certain 
animals; provides for the es tablishment of a system for 
the evaluation and certification of the performance of 
certain animals, and quality control with regard to the 
import and export of certai n animals, semen, ova, and 
eggs; and provides for the incorporation of livestock 
breeders' societies and the maintenance of their legal 
personality, and the granting of certain exclusive powers 
relating to the registration of  pedigrees of ce rtain livestock 
to the South African Stud Book and Livestock 
Improvement Association (SASBLIA) 
Co-operatives Amendment 
Act 6 of 2013 Amends the accounting practices and requirements for 
cooperatives by providing for audit and independent 
review of cooperatives; provides for the voluntary winding 
up of cooperatives by special resolution; provides for the 
annual submission of information to the registrar; substitutes the Advisory Board with the Advisory Council  
Veterinary and Para-
veterinary Professions 
Amendment Act 16 of 2012 Provides for the establishment of an appeal committee 
and its functions; provides  for the performance of 
compulsory community service; provides for registered 
foreign veterinarians to continue practising by attaining 
either citizenship or permanent residency; provides for 
the appointment and powers of inspection officers, the 
investigation of complaints and cost orders  
Perishable Products Export 
Control Act 9 of 1983 Provides for the control of perishable products intended 
for export from South Africa and the continued existence 
of a statutory board to bring about the orderly and efficient export of perishable products from South Africa 
Agricultural Research 
Amendment Act 27 of 2001 Establishes the Agricultural Research Council (ARC) to 
undertake agricultural research; regulates matters with 
regard to ARC's procee dings, powers, duties, 
management, control, employees, financing, and related 
matters 
Agricultural Produce Agents 
Amendment Act 47 of 2003 Provides for the establis hment of an Agricultural Produce 
Agents Council and fidelity fund s in respect of agricultural 
produce agents, and the control of certain activities of agricultural produce agents 
South African Abattoir 
Corporation Act Repeal Act 17 of 2005 Provides for the privatization of the South African Abattoir 
Corporation 
Agricultural Development Fund Act 175 of 1993 Provides for the establishment of, and control over, an 
agricultural development fund  for the handling of money 
received for development 
Source: Information provided by the authorities. 
4.10.  Agricultural finance involves various pub lic entities, such as the Land and Agricultural 
Development Bank of South Africa (the Land Bank ). The Land Bank operates under a government 
mandate to provide financial services to the commercial farming sector and agribusiness, and 
provide financial products to new entrants with historically disadvantaged backgrounds. The Development Bank of Southern Africa (also stat e-owned) with a mandate to finance development WT/TPR/S/324 • South Africa 
 
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  in all economic sectors, as well as the Industrial Development Corporation (IDC), maintains an 
agricultural financing programme.  
4.11.  The Micro-Agricultural Financial Institutions of South Africa (Mafisa) is a scheme that 
provides production loans of up to R 500,000 per person to smallholders operating within the 
agriculture, forestry and fisheries sector. Mafisa loans were initially restricted to farming 
enterprises; however, its credit policy was revised to include the forestry and fisheries subsectors. The scheme is open only to eligible South African citizens. To be eligible, farmers must, inter alia , 
be from historically disadvantaged groups, have legal access to land or production facilities, have a 
gross household non-farm income not exceeding R 20,000 per month, and have a viable business (ability to repay). Livestock, sugar cane and grain crops are the main beneficiary subsectors.  
4.12.  Other key institutions in South Africa's agri cultural sector include the Agricultural Research 
Council, the main research entity in the sector; the National Agricultural Marketing Council (NAMC) 
in charge of supporting domestic producers to tap export markets; Agri South Africa (AgriSA), the South African Agricultural Union which provides input in national agricultural policies on behalf of 
its members (some 70,000 large and small commerci al farmers); and the Agricultural Business 
Chamber, a voluntary private association of agribusinesses. 
4.13.  South Africa's National Development Plan (NDP), which was rolled out in 2012, considers 
agriculture to be a key driver of economic performance, including employment and rural 
development. Under the NDP, the Government plans to create one million jobs in agriculture by 2030 through increased irrigation plans, and the tr ansfer of 20% of all commercial agricultural 
l a n d  t o  b l a c k  f a r m e r s .  I n  f a c t ,  l a n d  r e f o r m  i s  the core element of South Africa's agricultural 
development policies. The Land Reform Programme has three main components: restitution of 
land unjustly taken from people and communities ; land redistribution; and land tenure reform. 
Under the programme, grants are given to the blac k disadvantaged population to acquire land or 
for other forms of on-farm participation. However, the Land Reform Programme is financially 
costly, and budget limits have become a constrai nt to further progress. Only one-third of the 
original goal of 30% of the white-owned land was transferred under the programme. 
4.14.  Agriculture also remains central to several other development plans in South Africa. As an 
example, the New Growth Plan (NGP), launched in 2011, also focuses on promoting job creation in 
the sector. A National Policy on Food and Nutrition Security, launched in 2013, pursues the goals of boosting food security and supporting subsistence farmers.  
4.15.  Tariff protection of agriculture, hunting, fo restry, and fishing (ISIC Rev.2, 1) stood at 3.7%, 
down from 5.5% in 2002, with tariffs ranging from zero to 44%. Both ad valorem  and specific 
tariffs (and a combination of both) are applied to agriculture and agro-food products; however, 
most tariff lines 95.7% bear ad valorem  duties. Variable (formula) duties are still levied on 
cornflour, preserved tomatoes, cherries, and two kinds of tobacco (Main Report, Section 3.1).  
4.16.  The lowest tariff rates (mostly zero) appl y to staple products (mainly maize, or live 
animals), while rates higher than the overall aver age rate apply to selected products such as 
sugar, tobacco, dairy products, fruit, and vegetables. In addition, VAT applies to domestically produced and imported agricultural goods at a standard rate of 14%, while basic foodstuffs (e.g. brown bread, maize meal, eggs, milk, fruit, and vegetables) are zero-rated.  
4.17.  During the review period, South Africa notified to the WTO that it didn't subsidize its exports 
of agricultural goods for the period 2006-10.
2 It also notified that during calendar years 2004-10, 
all domestic support related to Green Box measures.3 The main areas of public support were 
development aid; research; the National School Nutrition Programme; veterinary and 
phytosanitary services, and quality control; and resource conservation and environmental management.  
                                               
2 WTO documents G/AG/N/ZAF/78, 14 December 2012; G/AG/N/ZAF/74, 13 May 2011; and 
G/AG/N/ZAF/70, 9 September 2009.  
3 WTO documents G/AG/N/ZAF/73, 13 May 2011; G/AG/N/ZAF/77, 14 December 2012; 
G/AG/N/ZAF/58/Rev.1, 25 May 2009; G/AG/N/ZAF/65/Rev.1, 25 May 2009; and G/AG/N/ZAF/71, 9 September 2009.  WT/TPR/S/324 • South Africa 
 
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  4.18.  Tariff quotas apply to agricultural products, including animal products, potatoes, vegetables, 
fruit, cereals, coffee, tea, oil seeds, sugar, food  preparations, wine and spirits, vinegar, tobacco, 
and cotton (Section 3.1). The TDCA preferential agreements concluded with EFTA include preferential tariff quotas covering cheese products (Table 4.2). 
Table 4.2 Quota usage for imported cheese 
('000 kg) 
Quota usage for imported cheese under the TDCA 
Year Quota Usage 
2011 6,650 3,622 
2012 6,850 8,735 
2013 6,950 5,513 
2014 7,100 6,995 
2015 7,250 1,786 
Quota usage for imported cheese under the EFTA-SACU 
Year Quota Usage 
2012 200 26 
2013 200 26 
2014 200 22 
2015 200 4 
Source: Provided by the Authorities. 
4.19.  Levies continue to apply to the export an d/or production of the following products: citrus, 
cotton, certain dairy products, deciduous fruits, dried fruits, fynbos (protea), lucerne, mango, 
olive, pecan nut, potato, pork, poultry, red meat, sorghum, table grape, wine and grapes, and winter cereals. Levies are collected at the first point of sale by the various agricultural associations 
to fund their activities; the rates are published on a regular basis in the Government Gazette. 
Under the Marketing of Agricultural Products Act (Act No. 47 of 1996) guideline prices are 
established based on average market prices for al l products to which levies are applicable. These 
prices are for administrative purposes and to ensure the levy does not exceed 5% of the actual 
price. According to the authorities, the guideline pr ice is the average price at the first point of sale 
and has no impact on the market price. 
4.1.3  Key subsectors 
4.1.3.1  Crops 
Grains 4.20.  Maize is the largest locally produced field crop, with production averaging about 
10.4 million tonnes a year over the past 10 years. It is estimated that over 8,000 commercial 
maize producers are responsible for most of the South African crop. Thousands of small-scale producers also operate in the subsector. Some 11.5 million tonnes of maize were commercially produced in 2012/13 on 2.8 million hectares of land.  
4.21.  Wheat is produced mainly in the winter rainfall areas of the Western Cape and the eastern 
parts of the Free State. In 2012, 1.9 million tonnes were produced on 511,200 hectares of land. Malting barley is produced mainly on the southern coastal plains of the Western Cape. The area of 
barley planted totalled 84,940 hectares in 2012, and production totalled 298,000 tonnes. Sorghum 
is cultivated mostly in the drier parts of the summer rainfall areas such as Mpumalanga, the Free State, Limpopo and North West. In 2012/13, an estimated 62,620 hectares were planted, with 
production totalling 154,494 tonnes. 
Sugar 4.22.  South Africa's sugar sector is diversified, combining the agricultural activities of sugar-cane 
cultivation with the industrial factory production of raw and refined sugar, syrups and specialized 
sugars. The cane-growing sector comprises about 29,130 registered sugar-cane growers farming 
predominantly in KwaZulu-Natal, with a substantial investment in Mpumalanga and the Eastern Cape.  WT/TPR/S/324 • South Africa 
 
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  4.23.  Sugar is manufactured by milling companies with 14 sugar mills operating in the 
cane-growing regions. About 430,000 hectares are under sugar cane production, with 68% grown within 30 km of the coast and 16% in the high ra infall areas of KwaZulu-Natal. The remainder is 
grown in the northern irrigated areas that comprise Pongola and Mpumalanga lowveld. 
Approximately half of the 2.5 million tonnes of sugar produced in South Africa per season is 
marketed within SACU. The remainder is exported to various markets in Africa, the Middle East, the Far East (Korea and Japan), North America, and Asia.
4  
4.24.  The sugar industry provides direct empl oyment in cane production and processing, and 
indirect employment in numerous support industries in South Africa. Direct employment within the sugar industry is approximately 79,000 jobs, while indirect employment is estimated at 350,000.
5 
4.25.  The industry consists of the sugar cane production and sugar milling industry. The primary 
production sector is represented by the South Af rican Cane Growers' Association (SACGA), and the 
millers by the South African Millers Association (SASMA). The two organizations cooperate in a partnership in and with the South African Sugar Association (SASA). 
4.26.  In April 2014, South Africa increased the dollar-based reference price of beet and cane 
sugar from US$358 to US$566 per tonne, based on a recommendation of the country's International Trade Administration Commission.
6 
4.27.  Whenever the import value of sugar falls be low the reference price, the SARS will impose an 
additional duty, which is applied by the Southern African Customs Union (SACU). In April 2014, an additional duty of 132 c/kg was introduced. On  27 June 2014, Notice R.501 reduced the duty to 
92.6 c/kg, which was increased again to 142.5 c/kg through Notice R.743, and to 207.1 c/kg, 
through Notice R.173 on 27 February 2015.  
Wine 4.28.  South Africa is a major wine producer in the world. The UK remains South Africa's single 
largest export market by far, taking some 25% of the total wine exports. However, this is a 
significant drop from 53% in 2002. 
4.29.  Over 3,323 farmers cultivate some 99,680 hectares of land under vines. Some 
300,000 people are employed both directly and indi rectly in the wine industry. The annual harvest 
in 2013 amounted to 1.5 million tonnes (1,156.5 million litres), of which 79% was used for wine. The annual harvest in 2014 amounted to 1,520,096 tonnes (1,171.9 million litres), of which 81% 
was used for wine.
7  
4.30.  Wines of South Africa (WOSA) represents a ll local wine exporters. It aims to promote the 
export of South African wines. WOSA is funded fr om two sources: a levy per litre collected on all 
wines exported, and contributions from the South African Wine Industry Trust, which was 
established in 1999 by the industry. 
4.31.  WOSA participates in several trade shows and wine fairs throughout the world. It also hosts 
the Cape Wine Expo held biennially at the end of  March. It is currently engaged in the dynamic 
marketing of South African wines, mainly in Chin a. Packaged exports (bottled or boxed wine) to 
China have significantly increased in recent years.  
4.32.  All wines for export must be certified by the DAFF to ensure compliance with health and 
certain quality requirements. The Wine and Spirit Board administers the South African Wine of 
Origin Scheme. Wines that qualify under the scheme are certified by the Board following a tasting 
and chemical analysis.  
4.33.  South Africa's wine industry is currently challenged by the impact of a decision by 
UK retailers to import South African wine in bulk, and bottle it in the UK, for environmental 
                                               
4 Online information. Viewed at: http://www.nda.agric.za/docs/FactSheet/Sugar06.pdf . 
5 Online information. Viewed at: http://www.sasa.org.za/sugar_in dustry/IndustryOverview.aspx .  
6 Online information. Viewed at: http://www.globaltradealert.org/mea sure/sacu-reference-prices-sugar-
increased-import-tariff-introduced . 
7 Online information. Viewed at: http://www.wosa.co.za/The-Industry/Overview/ .  WT/TPR/S/324 • South Africa 
 
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  reasons. The decision is likely to affect the de velopment of other related industries such as the 
glass bottle industry. Exports of wine in bulk in creased by 43.9% and exports of packaged natural 
wine decreased by 8.7% for the period 2011 to 2012. 
Horticulture 
4.34.  Horticulture is an important sector within South African agriculture. Fresh fruit in particular 
is a prominent export sector, whilst vegetable production is largely for the domestic market. Major horticultural crops in South Africa include citrus fruits, grapes, apples, pears, and quince.  
4.35.  The citrus industry is largely export-orien ted, with around 62% of overall production being 
exported in 2012/13. Due to the occurrence of citr us black spot in South Africa, stricter safety 
rules apply to exports to the European Union; as a consequence, in 2014, South Africa raised the issue of the European Union's regulations on citrus black spot as a trade concern at the WTO 
Committee on Sanitary and Phytosanitary Measures.  
4.36.  South Africa is a major producer and exporter of deciduous fruits, mainly apples, pears, 
table grapes, peaches, apricots, and plums.  
4.1.3.2  Livestock 
4.37.  Livestock production remains the single most important agricultural activity in South Africa. 
Animal production contributes to approximately 48% of the country's agricultural output value. 
The industry employs about 500,000 people. 
4.38.  The dairy industry is relatively small. However, a significant amount (more than half) of 
domestic milk consumption is met by local production.  
4.39.  The ARC is involved in a Livestock Development Programme, to introduce and expand the 
dissemination of technologies, such as artificial insemination and embryo transfer. Under the 
National Red Meat Development Programme (NRMDP), the National Agricultural Marketing Council (NAMC) is also actively engaged in a programme to train farmers in the structure, operation and 
requirements of the formal red meat market. It  works with emerging and communal farmers to 
increase the income earned from raising cattle, through greater and more beneficial participation 
in formal red meat markets.  
4.40.  The National Livestock Development Strategy aims to enhance the sustainability of the 
sector in South Africa across the entire production, processing and supply chain. 
4.1.3.3  Forestry 4.41.  Forestry and forest products contribute ab out 1% to GDP. South Africa's forest resources 
cover over 40 million hectares of the country's land surface. The sector employs around 165,900 
workers and provides about 62,700 direct jobs and 30,000 indirect jobs. Forestry provides 
livelihood support to 652,000 people of the country 's rural population. The pulp and paper industry 
provides about 13,200 direct and 11,000 indirect employment opportunities. Some 20,000 workers 
are employed in sawmilling, and 6,000 in the ti mber board and 2,200 in the mining timber 
industries, while a further 11,000 workers are employed in miscellaneous jobs in forestry.
8 The 
forestry industry was a net exporter of over R 2.2 billion worth of goods in 2012, of which more 
than 99% was transformed. 
4.42.  The DAFF administrates a Forestry Livelihood Programme to eradicate poverty in rural 
areas. Firewood, construction poles, medicinal plants and edible fruits are also critical to the 
livelihoods of the rural poor.  
4.43.  The National Forest Advisory Council (NFAC)  advises the Minister of Agriculture, Forestry 
and Fisheries on all aspects of forestry in the country. It is also involved in developing local 
criteria, indicators and standards for sustainable forest management. South African Forestry 
                                               
8 Online information. Viewed at: http://www.gov.za/a bout-sa/forestry .  WT/TPR/S/324 • South Africa 
 
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  Company Limited (Safcol) is the Government's fo restry company, conducting timber harvesting, 
timber processing and related activities, both domestically and internationally.  
4.44.  Protected trees may not be cut; damaged, destroyed or possessed; collected; removed; 
transported; exported; purchased; sold; donated or in any other way acquired or disposed of 
except under a licence granted by the Minister or in terms of an exemption. In accordance with the 
National Forests Act of 1998, all natural forests are protected. 
4.1.3.4  Fisheries 
4.45.  The fisheries industry's contribution to GDP is marginal (around 1% in recent years). 
However, it remains critical in ensuring livelihood for the poorest segment of the South African population. According to the FAO, the main commercial stocks fished in South Africa are sardine and anchovy, Cape hake, horse mackerel, rock lobster ("west" and "south" coast species), tuna 
and shark, loligo squid and a large grou p collectively referred to as "linefish".
9 
4.46.  The ﬁsheries sector is worth around R 6 billion per annum and directly employs some 
27,000 people in the commercial sector. Thousands more and their families depend on its 
resources for food and the basic needs of life. The Western Cape fisheries account for about 90% 
of the total South African fisheries value. Europe is South Africa's leading market for exported fisheries products. Other countries include the United States, Australia, and Japan. 
4.47.  South Africa's fisheries policy seeks to ma ximize the social and economic potential of the 
industry while protecting the integrity and qualit y of the country's marine and coastal ecosystems. 
The industry is regulated by the Marine Livi ng Resource Act of 1998 (MLRA). Under the MLRA, 
DAFF regulates the industry by issuing fishing rights for each fish sector for commercial, 
subsistence and recreational fishing in South African waters. DAFF allocates separate fishing rights 
to each operator. A fishing right is granted to a person or entity and may not be transferred 
without the approval of the Minister.  
4.48.  Fishing rights are allocated for long-ter m periods of between 8-20 years after which the 
bidding process for the rights is reopened. In 2005, a competitive rights allocation process was conducted which resulted in the awarding of long-term fishing rights (up to 20 years) across 22 
fish categories (such as hake, south coast rock lobster, small pelagic fish, horse mackerel, etc.).
10  
4.49.  Restrictions are also in place in the sector in terms of total allowable catch (TAC), i.e. total 
volumes of the resource (i.e. a particular fish category) that may be harvested in a particular season; total allowable effort (TAE), which refers to the number of fishing days allowed in a given 
season for a specific fish category; and restrictions on the vessel type to be used (i.e. engine 
capacity, etc.) and the number of vessels/trawlers allowed for each fish category. The TAC is determined following scientific and environmental studies into the sustainability of each fish 
category, and may fluctuate from year to ye ar depending on scientific recommendations. 
4.50.  The TAC for the west coast rock lobster 2013/14 ﬁshing season was set at 2,167,06 tonnes, 
of which 1,356,56 tonnes were apportioned to th e commercial offshore subsector and 451 tonnes 
to the commercial near-shore subsector. The total allowable catch for the subsistence (small-
scale/interim relief) subsector was set at 276 tonnes (138 kg per ﬁsher). The apportionment for 
recreational ﬁshing was set at four west coast rock lobsters per person per day for the duration of 
the ﬁshing season. The number of ﬁshing days for the 2013/14 recreational ﬁshing season was set 
at 26 days.
11 
4.51.  The size restriction remains at 80 mm carapace length and recreational ﬁshing permits will 
only be issued to persons above the age of 12 years. Any west coast rock lobster caught, collected 
or transported shall be kept in a whole state. We st coast rock lobster caught with a recreational 
permit must not be sold. Recreational west coast rock lobster permits are obtainable at post ofﬁces, at a cost of R 92 per permit and are valid for the entire recreational ﬁshing season. 
                                               
9 Online information. Viewed at: ftp://ftp.fao.org/fi/document/fcp/en/FI_CP_ZA.pdf .  
10 Online information. Viewed at: http://www.compcom.co.za/wp-
content/uploads/2014/09/Competition-Policy-Perspective-the-misregulation-of-the-South-African-Fishing-
Industry-15-August-2014FV.pdf . 
11 Online information. Viewed at: http://www.gov.za/about-sa/fisheries .  WT/TPR/S/324 • South Africa 
 
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  4.52.  A Small-Scale Fisheries Policy was adopted in 2012 to address imbalances of the past and 
ensure that small-scale ﬁshers are accommodated and properly managed. Under the policy, ﬁshing 
rights will be allocated on a group basis, rather th an on an individual basis. The policy further aims 
to support investment in community entities to take joint responsibility for sustainably managing 
the ﬁsheries resources and to address the depletion of critical ﬁsheries stocks.  
4.2  Mining and Energy 4.2.1  Mining 
4.2.1.1  Overview 
4.53.  The mining sector accounted for 8.3% of GDP in 2013 and employed 550,099 workers 
(about 8% of total employment).
12 In the same year, the sector generated 12.2% of total fixed 
investment (19.4% of total private-sector investment), despite weak growth of global demand, 
regulatory uncertainty and infrastructural constraint s. The mining sector also contributed to 30.5% 
of South Africa's total merchandise exports.  
4.54.  The Department of Minerals and Energy has embarked on a 2015-20 Strategic Plan aimed 
at promoting energy security through reliable, cl ean, and affordable sources, universal access to 
energy sources, and transformation  of the energy sector, as well as developing a national coal 
policy with regulations that will include a strategy to secure coal supply and which will have been 
aligned with the Mining Beneficiation Action Plan by July 2016.13  
4.55.  Mining taxation in South Africa consists of corporate income tax and mineral royalties. 
Mining companies extracting diamonds and other minerals and base metals, except gold, are levied an income tax at a flat rate of 28%, and a dividends tax at 15%. Income derived from gold 
mining is taxed on the basis of a formula. Mining companies are liable for value-added tax on 
goods and services supplied to them; however, exports of mining products are zero-rated. 
4.56.  The mineral royalty system was introduced in 2010 under the Mineral and Petroleum 
Resources Royalty Act, No. 28 of 2008 (MPRRA). The royalty is based on the value of minerals. 
The MPRRA distinguishes between a refined minera l resource and an unrefined mineral resource, 
and separate calculations are performed for the two categories.
14 A mineral resource is described 
as refined when it is in readily saleable refined condition, following a beneficiation, smelting and 
refining process. Refined minerals are listed in Schedule 1 of the MPRRA, and unrefined minerals are listed in Schedule 2.  
4.57.  The rate to be applied is determined by a formula taking into account the company's 
"profitability ratio". It is capped at 5% for re fined mineral resources and 7% for unrefined ones, 
and the minimum rate is 0.5%.  
4.58.  Small mining businesses are exempted from  a royalty if their gross sales do not exceed 
R 10 million in the year of assessment and the amo unt of the royalty (that would be paid if there 
were no exemption) is below R 100,000. 
4.59.  Average tariff protection for mining and quarrying is low (0.1%), with rates ranging from 
zero (salt mining) to 10% (mica waste) (Main Report, Table A3.2).  
4.60.  Under the Mineral and Petroleum Resources Development Act (MPRDA) (Act No. 28 of 2002, 
as amended), foreigners and nationals may apply for a prospecting right, mining permit, reconnaissance permit, beneficiation right, exploration right, and/or mining right as long as they 
comply with the requirements set out in the law.  
4.61.  Applications are assessed according to a "first-in, first-assessed" principle. However, 
preference may be accorded to applications from historically disadvantaged peoples when 
                                               
12 Chamber of Mines of South Africa (2015). 
13 Department of Minerals and Energy (2015). 
14 Online information. Viewed at: http://pmg-assets.s3-website-eu-west-
1.amazonaws.com/131106mining.pdf .  WT/TPR/S/324 • South Africa 
 
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  considering applications received on the same date. The Mineral Regulation and Administration 
Branch within the Department of Mineral Resources is responsible for processing the applications. Applications must be lodged with the regional office where the land is situated, with all the required documents, including farm name and number, title deed, applicants' details, company 
name and registration number, proof of technical and financial ability, and type of mineral. The 
applicant must pay a non-refundable application fee, which varies according to activity. Turnaround times are six months for a prospecting right and 12 months for a mining right. The 
rights are non-transferable and are usually for two years, renewable in certain cases.  
4.62.  On 27 December 2012, a Mineral and Pe troleum Resources Development Draft Amendment 
Bill was introduced in Parliament to amend the Mineral and Petroleum Resources Development Act of 2002, in order to, inter alia , provide for the regulation of associated minerals, promote national 
energy security, streamline administrative pr ocesses, and align the Mineral and Petroleum 
Resources Development Act with the Geoscience Amendment Act, 2010 (Act No. 16 of 2010).  
4.63.  On 15 November 2013, the Mine Health and Safety Amendment Bill was introduced in 
Parliament by the Minister of the Department of Mineral Resources. The aim is to amend the Mine 
Health and Safety Act of 1996, in order to, inter alia , streamline administrative processes (for 
instance, appointment of chief executive officers),  to strengthen enforcement provisions, and to 
reinforce offences and penalties.  
4.2.1.2  Key subsectors 4.2.1.2.1  Coal 4.64.  South Africa has the world's 8th largest coal reserves (around 30 billion tonnes) and ranked 
7
th in terms of coal production.15 There are 19 official coal fields with 70% of the reserves lying in 
three fields (Highveld, Waterberg, and Witbank) . In 2013, the coal industry employed around 
87,768 workers. Production totalled 256.3 million tonnes (0.9% decrease compared with 2012).  
4.65.  Total coal sales by value increased by  4% from 2012 to an amount of R 100.4 billion. 
Approximately 71% of production was sold locally, whilst 29% was exported, mainly through the Richards Bay Coal Terminal (RBCT).
16 The RBCT achieved a record-breaking 70.2 million tonnes of 
coal in 2013. The RBCT is now focused on pushin g forward its Phase VI expansion plan, which will 
increase its capacity from 91 to 110 million tonnes per annum. Total exports through the RBCT increased by 3% in 2013 from 68 million tonnes in 2012, still short of its full potential.
17 
4.66.  Production of coal is highly concentrated with five companies accounting for 85% of saleable 
coal production (Ingwe Collieries Limited, a BHP Billiton subsidiary; Anglo Coal; Sasol; Eyesizwe; 
and Kumba Resources Limited).18 
4.67.  Coal provides 77% of South Africa's prim ary energy needs. Over 30% of South Africa's 
liquid fuels are produced within the country from locally mined coal and 95% of electricity is 
generated in power plants that use locally mined coal. Most domestic chemicals, fertilizers, waxes, polymers and plastics are fabricated using locally  mined minerals and coal. Liquefied coal is 
produced by Sasol
19, the world's largest liquefied coal manufacturer. Imports of coal products 
enter South Africa duty-free (Main Report, Table A3.2).  
4.2.1.2.2  Diamonds and precious metals 4.68.  As at the time of the previous review, the South African Diamond and Precious Metals 
Regulator (SADPMR) regulates the diamond and precious metals (gold and platinum group metals) 
                                               
15 Department of Minerals and Energy  online information. Viewed at: www.dme.gov.za . 
16 Chamber of Mines of South Africa, Facts & Figures 2013. 
17 Department of Minerals and Energy  online information. Viewed at: 
http://www.energy.gov.za /files/coal_frame.html . 
18 Department of Minerals and Energy  online information. Viewed at: 
http://www.energy.gov.za /files/coal_frame.html . 
19 Sasol was established by the Government in 1950 to manufacture fuels from indigenous raw 
materials. WT/TPR/S/324 • South Africa 
 
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  industries, as stipulated in the Diamond Act (Act No. 56 of 1986), as amended20, and the Precious 
Metals Act (Act No. 37 of 2005). The SADPMR administers and controls the purchase, sale, beneficiation, import, and export of diamonds. It also administers and controls the acquisition, possession, smelting, refining, fabrication, use,  and disposal of precious metals. The SADPMR 
issues licences, permits, and certificates for all ac tivities related to diamonds and precious metals. 
The SADPMR also ensures that all diamond dealers comply with the Kimberley Process Certification 
Scheme.
21  
4.69.  The Diamond Exchange and Export Centre (DEEC) is in charge of facilitating domestic and 
international trade in diamonds. The Centre organizes auctions for mines and allows any person holding a permit or licence to buy rough diamonds  to participate. The State Diamond Trader (SDT) 
was created in 2007 to promote "equitable" access to diamonds and develop South Africa's 
diamond cutting and polishing industries. The SD T buys up to 10% of South Africa's diamond 
production and sells it to small-to-medium-sized local cutters and polishers
22; in 2007, only 5% of 
South Africa's rough diamonds were cut and polished locally.23 An additional service for the 
facilitation of polished diamonds was launched on 15 February 2013 by the DEEC and the first 
tenders were facilitated from 11-15 March 2013.24 
4.70.  Around 41% of South Africa's diamonds ar e of gem quality; the rest are of industrial 
quality. In 2013, production of rough diamonds to talled 7.5 million carats (up from 7.2 million in 
2012). Exports totalled 8.6 million carats valued at US$1.5 billion (down from 8.7 million carats in 2012). Exports to Botswana grew significantly wh ile exports to the EU decreased because their 
aggregation as part of De Beers' global diamond production was relocated to Gaborone 
(Botswana).
25  
4.71.  In 2013, the DEEC recorded an increase in polished diamond imports which totalled 
864,083 carats to the value of US$743.8 million. Some of these polished diamonds were imported 
to South Africa for consultation and certification purposes at local laboratories and were re-
exported to their countries of origin. A significant increase in the import of synthetic diamonds was recorded in 2013 (113 million carats valued at approximately US$10 million), mainly for the 
manufacturing of diamond tools. Im ports of diamonds are duty-free.
26 In 2013, the number of 
people employed in the local diamond mining  industry increased by 11.3% to 13,547.  
4.72.  In October 2013, the first National Jewellery Forum was held in Johannesburg. The forum 
brought together mining and jewellery manufacturing associations and government to create 
entrepreneurs with the requisite skills to enable South Africa to become a global jewellery hub. 
4.73.  There is considerable state intervention in the diamond market. It is regulated by the 
Diamond Export Levy (Administration) Act, 2007 (Act No. 14 of 2007) and the Customs and 
Excise Act, 1964 (Act No. 91 of 1964). Even though imports of diamonds bear a zero tariff, import 
prohibitions are maintained for uncut diamonds; while exports of unpolished diamonds continue to be prohibited except when carried out by a producer, a manufacturer (if it is a synthetic diamond), 
a dealer, or a holder of an export permit. Un polished diamonds must be sold at the diamond 
exchange and export centres. In addition, in order to promote the development of the local 
economy, develop skills, and create employment, South Africa still levies a tax on exports of unpolished diamonds (Section 31). 
                                               
20 Diamonds Amendment Act (Act No. 29 of 2005) and Diamonds Second Amendment Act (Act No. 30 of 
2005). 
21 South African Diamond and Precious Metals Regulator (2015).  
22 Initially, SDT bought rough diamonds exclusiv ely from De Beers. It has now signed supply 
agreements with smaller mining oper ations. ("South Africa's Acting St ate Diamond Trader Shows Goods to 
Clients", Rapaport News , 21 January 2009. Viewed at: 
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=25009)  
23 "State Diamond Trader Officially Launched", Mining Weekly , 29 February 2008; and "South Africa's 
Acting State Diamond Trader Shows Goods to Clients", Rapaport News , 21 January 2009. Viewed at: 
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=25009 . 
24 South African Diamond and Precious Metals  Regulator online information. Viewed at: 
http://www.sadpmr.co.za/ pages/about-us/overview . 
25 South African Diamond and Precious Metals Regulator (2015). 
26 Chamber of Mines of South Africa (2015). WT/TPR/S/324 • South Africa 
 
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  4.74.  In 2013, South Africa produced 167 tonnes of gold and was ranked the world's 6th largest 
gold producer with a 6.6% share of the global total. In 2013, the gold mining industry was the 
second largest mineral exporter after platinum group metals. Approximately 6% of production was sold locally, while 94% was exported. In 2013, the local gold mining industry employed 
131,591 people. South Africa processes gold for jewellery and for minting coins.
27 Its gold reserves 
have been estimated at 31,000 tonnes, some 30% of the world's reserves.28 
4.75.  South Africa has about 87% of the world's platinum group metal (PGM) reserves.29 The 
South African PGM industry is one of the largest components of the South African mining sector on 
the basis of GDP and export earnings, and is a significant contributor to the South African 
economy. In 2013, the PGM industry generated R 84 billion in sales, a 21.7% increase from sales of R 69 billion in 2012. This was in spite of the wildcat strikes of 2012 which continued into 2013.  
4.76.  The industry has been hit by the combined impact of slowing global demand, falling prices, 
rapidly escalating domestic production costs (that have added to the high cost structure of the industry) and the impact of the wildcat strikes th at hit the industry in 2012, and continued into 
2013. In 2013, PGM mining employed around 191,216 workers. Production totalled 264.2 tonnes 
(254.3 tonnes in 2012); platinum accounted for over half of PGM production (137 tonnes in 2013).  
4.77.  The increase in platinum supply was on the back of a recovery in mine production following 
major disruptive strike actions in South Africa in 2012. Industrial demand in 2013 increased by 
11.4% to 54.9 tonnes from 49 tonnes in 2012, mostly due to a recovery in the demand for glass, chemicals and electronics, whilst investment demand rose by a staggering 67.6% from 14.2 tonnes in 2012 to 23.8 tonnes. The launch of Absa's new platinum exchange traded funds 
(ETF) in South Africa attracted strong investment during the review period.  
4.2.2  Petroleum and gas 4.78.  The Petroleum Agency of South Africa (PASA) regulates oil and natural gas exploration and 
production. The upstream segment of petroleum and gas is mainly managed by the State. The 
Petroleum Oil and Gas Corporation of South Africa PetroSA, a state-owned company, operates upstream oil and natural gas producing infrastructures in South Africa, along with the GTL plant in 
Mossel Bay. Sasol, a privately-owned company based in South Africa, operates the Secunda CTL 
plant; it also has the majority share in the Natref oil refinery, partially owns the pipeline 
transporting natural gas from Mozambique to South Africa, and is involved in coal mining. The downstream oil sector is more diversified and includes companies such as BP, Sasol, Shell, 
Chevron, Total, and Engen, which are in charge of importation and distribution. Smaller 
independent operators also operate service stations. 
4.79.  South Africa's crude oil reserves are estimated at 15 million barrels.
30 They are located in 
the offshore southern part of the country in the Bredasdorp Basin and off the west coast of the 
country near the maritime border with Namibia. South Africa's petroleum and other liquids (total oil) production was about 160,000 barrels per day in 2014. Synthetic fuels, derived from coal and 
natural gas, accounted for more than 90% of the country's domestic petroleum supply. In 2009, 
Shell acquired exploration rights over a large block in the Bredasdorp basin. However, its exploration activities have not yet started. 
4.80.  South Africa consumes the second-largest  amount of petroleum in Africa. The petroleum 
consumed in South Africa comes mostly from its domestic refineries that import crude oil, and 
from its CTL and GTL plants. South Africa imports crude oil mostly from OPEC countries. The Government has proposed plans to implement new, tighter fuel standards that would require 
upgrades at all refineries; the plan is to be implemented as of 2020.  
                                               
27 Chamber of Mines of South Africa (2015); and Sout h African Diamond and Precious Metals Regulator 
(2008). 
28 Mbendi online information, "Gold Mining in South Africa: Overview". Viewed at: 
http://www.mbendi.com/indy/ming/gold/af/sa/p0005.htm . 
29 PGM includes platinum, palladium, rhodium, iridium, ruthenium, and osmium. 
30 "Worldwide Look at Reserves and Production", Oil & Gas Journal , 1 January 2015. Viewed at: 
http://www.ogj.com/articles/print/volume-112/issue-1/drilling-production/worldwide-look-at-reserves-and-
production.html . WT/TPR/S/324 • South Africa 
 
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  4.81.  The retail price of gasoline is regulated and adjusted on a monthly basis. This price is 
calculated by the Central Energy Fund (CEF) on be half of the Department of Minerals and Energy 
(DME), and takes into account: the basic fuel price (BFP) derived from a formula that uses the import price of refined oil put in at the South Af rican shores (53.1% of the price); transport cost 
from the refinery to the pump (2.4%); a wholesale margin also determined by a formula (7%); 
the retail margin also fixed by DME and based on ac tual cost (8.4%); the cost of delivery (1.2%); 
and taxes (i.e. tariffs and excise duties, contribution to the road accident fund (RAF), and the fuel 
levy) (27.9%). The BFP is adjusted monthly and is  the result of negotiations between the African 
Minerals and Energy Forum (AMEF) and the South African Petroleum Industry Association (SAPIA). 
4.82.  South Africa imports natural gas from Mo zambique via pipeline to supply Sasol's Secunda 
CTL plant and to fuel some gas-fired power plan ts. South Africa produces a small volume of 
natural gas offshore, and it is mainly used to supply the Mossel Bay GTL plant.
31 
4.2.3  Electricity 4.83.  South Africa's nominal installed electricity capacity is about 45,645 megawatts (MW). 
Eskom, a wholly state-owned company, supplies roughly 95% of South Africa's electricity; and the 
balance is provided by independent power produc ers (IPPs), or imported from the region. Eskom 
buys electricity from and sells it to countries in the region. South Africa is a member of the 
Southern  African Power Pool (SAPP), which aims to provide reliable and efficient electricity supply 
to consumers in its member countries. Eskom exports electricity to Lesotho, Namibia, Botswana, Zimbabwe, Mozambique, Swaziland, and Zambia; it also sources part of its electricity from the SAPP. 
4.84.  Electricity transmission is under ESKOM's monopoly. Eskom and 187 licensed municipalities 
distribute electricity. This dual system has led to inefficiencies, disparities in tariffs, unequal treatment of customers, and inadequate network maintenance.  
4.85.  The Department of Energy (DoE) is resp onsible for formulating and implementing policies 
for efficient exploitation of South Africa's mineral resources, and provides all citizens with energy. As an SOE, Eskom reports to the DoE. Electricity tariffs are regulated by the National Energy 
Regulator of South Africa (NERSA).  
4.86.  Around 84% of South African households are electrified. Under the Integrated National 
Electrification Programme (INEP), the authorities pursue the objective of universal access to electricity by 2025.  About 85% of South Africa's installed electricity capacity derives from coal-
fired power stations, 10% from hydroelectric plants , 4% from a nuclear power plant, and 1% from 
non-hydro renewable energy.
32 South Africa plans to diversify its electricity generation mix. In an 
effort to reduce dependence on coal and improve energy security, the Government adopted a 
20-year Integrated Resource Plan (IRP) in 2010, as part of the economy-wide National 
Development Plan (NDP). In addition, the authorities strive to expand South Africa's renewable electricity capacity through its Renewable Independent Power Producer (IPP) Procurement 
Programme.  
4.87.  South Africa's electricity system continues to face serious challenges that have resulted in 
frequent power disruption since 2008. In fact, the margin between peak demand and available 
electricity supply has been precariously narrow. As a consequence, some coal mines had to halt 
operations because of power blackouts, and Eskom requested that its largest industrial customers 
cut their consumption by 10% during peak dema nd times to avoid unexpected blackouts or 
load-shedding (scheduled power cuts). South Africa 's electricity system remains fragile and poses 
a serious risk to the country's future economic performance, as the vast majority of coal power 
plants are outdated, poorly maintained, and push ed to their maximum working capacity. Lack of 
investments, as well as rising electricity de mand, have contributed to the power failures. 
4.88.  The 2010 IRP is also expected to address South Africa's current energy crisis by building 
9,600 MW of additional nuclear base load capacity; generating 3,900 MW through open-cycle gas turbines during peak demand periods; and importing 2,600 MW of hydroelectric power and 
2,400 MW of natural gas. 
                                               
31 Online information. Viewed at: http://www.eia.gov/countries/cab.cfm?fips=sf .  
32 Online information. Viewed at: http://www.eia.gov/countries/cab.cfm?fips=sf . WT/TPR/S/324 • South Africa 
 
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  4.3  Manufacturing 
4.89.  South Africa has a relatively well-established and diversified manufacturing base. The 
sector's contribution to GDP continued its slight and steady decrease during the review period from 15.4% in 2008 to 13.9% in 2014 (Table 1.1). This pattern was reflected in South Africa's 
performance in manufacturing exports (Table A1.1). Manufacturing is dominated by the agri-
processing, automotive, chemicals, electronics, metal, and textile and clothing industries.  
4.90.  South Africa's New Growth Path (NGP) and the Industrial Policy Action Plan (IPAP) are the 
main policy actions with significant focus on the manufacturing sector. Administrated by the DTI, 
IPAP is at the core of South Africa's industrial policy. It is implemented on three-year basis. The 
current IPAP covers the period from 2014 to 2017. It places greater emphasis (increased incentive packages) on competitiveness of manufacturing ex ports, especially for industries with high 
expansion potential. South Africa maintains an extensive list of incentive schemes in the 
manufacturing sector (Table A3.2). 
4.91.  During the previous review the high cost of inputs and intermediate goods was pointed out 
as a key constraint to the development of manufacturing, due to lack of competition in a number 
of key intermediate industries, and to import duties; to this end, a new competition policy was adopted (Section 3.3). 
4.92.  South Africa's manufacturing sector remains highly protected compared to other economic 
sectors. This protection pattern is more noticeab le for industries that supply the domestic market. 
The average tariff rate in manufacturing stood at 8.7% in 2015, slightly up from 8.5% in 2009 
(Main Report). The highest rate of protection continues to apply to the textiles, wearing apparel, and leather industries. Tariff protection in several industries shows mixed (with high protection for final products) or positive escalation, as some industries such as food processing, and textiles and 
clothing are protected. 
 
4.3.1  Key subsectors  
4.3.1.1  Automotive industry 
4.93.  The automotive industry is South Africa's largest and leading manufacturing subsector, both 
in terms of its contribution to the country's GD P (6% in 2010), and its share in exports of goods 
(12% in 2014) (Table A3.1). It has strong linkages with other industries including steel, metal, 
plastic and leather products (backward linkage); and financial services, motor retail and 
advertising (forward linkage).  
4.94.  The industry has a high positive multiplier effect on the rest of the economy in terms of 
value-addition, employment, investment, balance of payments and net revenue generation. Over 
28,000 people are directly employed in automo tive manufacturing, and 65,000 are employed in 
the component manufacturing industry. Abou t 200,000 persons are employed in retail and 
aftermarket activities, with 6,600 employed  in the tyre manufacturing industry.33  
4.95.  Several multinational firms, including BMW, Ford, Volkswagen, Daimler-Chrysler and 
Toyota, use South Africa to source components and assemble vehicles for the local and international markets. In addition, component ma nufacturers (Arvin Exhust, Bloxwitch, Corning, 
Senior Flexonics) have established production bases in the country. 
4.96.  Since the inception of the Motor Industry Development Programme (MIDP) in 1994, the 
industry has enjoyed large expansion, doubling in size. However, the review of the MIDP has revealed the need for more ambitious efforts to exploit additional opportunities. As a consequence, 
in 2013, the Automotive Production and Development Programme (APDP) replaced the MIDP and 
aims to stimulate the expansion of local production to 1.2 million vehicles a year by 2020, while significantly increasing local content. A key difference between the MIDP and the APDP is that the 
APDP is focused on production, not export alone. 
                                               
33 Online information. Viewed at: http://www.southafrica.info/business/economy/sectors/automotive-
overview.htm .  WT/TPR/S/324 • South Africa 
 
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  4.97.  The APDP has four key elements: (a) tariff measures, i.e. stable import tariffs set at 25% 
for completely built up vehicles (CBVs) and 20% for components used by vehicle assemblers; (b) a 
local assembly allowance (LAA); (c) production incentives (PI); and (d) an Automotive Investment Scheme (AIS). The LAA allows vehicle manufacturers with a plant volume of at least 50,000 units 
per annum to import a percentage of their componen ts duty-free. The PI consists in an allowance 
for duty-free imports of vehicles or components , calculated as a percentage of manufacturing 
value addition (MVA) in South Africa's supply chain. The AIS provides for a non-taxable cash grant 
of 25% of the value of qualifying investment in productive assets by component manufactures and 
tooling companies. An additional a non-taxable cash grant of 5 to 10% may be made available for projects that meet a list of economic benefit criteria. 
4.98.  In addition, the Automotive Supply Chain Competitiveness Initiative (ASCCI) was launched 
in 2013 to enhance production and supplier capabilities, as well as regional development.  
4.3.1.2  Textiles and clothing 4.99.  The clothing and textile industry is the most labour intensive subsector of manufacturing in 
South Africa, as it accounts for some 14% of total manufacturing employment, particularly in 
many poor communities and among low-skilled workers. 
4.100.  While the industry enjoys a number of adva ntages such as domestic availability of raw 
material (cotton, leather, vegetable fibres, wool and mohair) which South Africa produces in 
significant quantity, it continues to face a surge of cheaper imports.  
4.101.  Under the Customized Sector Programmes (CSP) for the clothing and textile industries, the 
Clothing and Textile Competitiveness Programme (CTCP) was introduced in 2010 to help South 
Africa's clothing and textile industry upgrade its processes and products to compete effectively 
both domestically and globally. 
4.102.  Its main pillars are: the Capital and Te chnology Upgrading Programme, the Preferential 
Financing Scheme, the Competitiveness Improvem ent Programme, and the Production Incentive 
(its core funding mechanism).  
4.103.  The CTCP is aimed at structurally changi ng the clothing, textiles, footwear, leather and 
leather products industries by providing funding assistance for these sectors for investment in 
competitiveness improvement interventions. 
4.4  Services 4.104.  The contribution of services to South Af rica's GDP grew from 66.2% in 2008 to 68.9% in 
2014. Finances, tourism, wholesale and retail services, as well as transport and communication are 
the largest services subsectors (Section 1). 
4.105.  South Africa's specific commitments in the Uruguay Round covered business services; 
communication services (courier services and telecommunication services); construction and 
related engineering services; distribution services; environment services; financial services (insurance and insurance-related services, and banking and other financial services); tourism and 
travel-related services; and transport services . The horizontal commitments on market access 
contain a limitation on temporary presence for up to three years for those engaged in the supply of certain services, without requiring compliance with an economic needs test; limitations on national treatment relate to local borrowing. South African registered companies with a non-resident 
shareholding of 25% or more have uns pecified limits on local borrowing.
34 
4.4.1  Telecommunications 4.106.   The Department of Communications (DoC) is in charge of, inter alia , policies and 
legislation related to information and communications technology (ICT), ensuring reliable and 
affordable ICT infrastructure, overseeing state-ow ned enterprises (SOEs) in the ICT industry, and 
fulfilling South Africa's international ICT responsibilities. The Independent Communications 
                                               
34 WTO document WT/TPR/S/222/ZAF, 6 November 2009. WT/TPR/S/324 • South Africa 
 
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  Authority of South Africa (ICASA), the regulato r, provides consumer protection, and oversees 
competition in the sector.  
4.107.  The SOEs that operate under the DoC are: the Independent Communications Authority of 
South Africa (ICASA), the South African Post Offi ce, the South African Broadcasting Corporation, 
Sentech Ltd., the National Electronic Media Inst itute of South Africa, the Universal Service and 
Access Agency of South Africa, and the za.com Domain Name Authority. The SOE Broadband Infraco was created under the Department of Public Enterprises portfolio to provide "affordable" 
broadband services, particularly in underdevelop ed and underserviced areas, and ensure that 
bandwidth requirements for projects of national  interest are met. Infraco owns the network 
infrastructure that was previously operated by Eskom. 
4.108.  South Africa's licensing regime in telecommunications is technologically neutral under the 
Electronic Communications Act (Act No. 36 of 2005). The Act facilitates synergies between 
telecom, broadcasting, and information technology services, while promoting competition in the sector through, inter alia , facilitating access to networks. Pursuant to the provisions of the Act, the 
Competition Act applies to the telecom subsector; ICASA cooperates with the Competition 
Commission in any type of investigation. 
4.109.  In 2014, the ICASA Amen dment Act, together with The Electronic Communications 
Amendment Act was passed to clarify ICASA' responsibilities, align the legislation with the 
broad-based black economic empowerment initia tives, and refine the licensing regime.  
4.110.  Competition in the fixed line segment was introduced in 2006 when Neotel was licensed to 
compete against Telkom (which used to have monopoly power in the sector). Telkom was wholly 
government owned until 1997, when TeleKom Malaysia and SBC Communications bought a 30% 
share. The Government continues to have a majority share of Telkom. It continues to operate in both fixed-line and mobile segments. 
4.111.  Five operators provide mobile services: Vodafone (43% of the market), MTN (36.8%), 
Cell C (17.2%), Telkom Mobile (2.3%) and Virgin mobile (0.7%). South Africa's mobile penetration rate stood at 135% in 2014. 
4.112.  ICASA is in charge of regulating mobile termination rates (MTRs) in South Africa. 
Interconnections are governed by the Interconnection Regulations (Regulation Gazette No. 9263 of 9 April 2010). They set out, inter alia , agreement principles; the timeframe and process to be 
followed by parties; and the procedures for th e submission, review and filing of agreements. 
4.113.    In June 2014, following several reported contentious issues relating to MTRs between the 
two small mobile operators (Cell C and Telkom Mobile) and MTN and Vodafone, ICASA announced that MTRs were set to halve to R 0.10 by March 2016, after having already been cut from R 0.40 
to R 0.20 in March 2014. However, this decision by ICASA was challenged by Vodafone and MTN 
before the South Gauteng High Court, as they see the new MTR structure as a subsidy to their competitors. The Court deemed the new MTR stru cture invalid and unlawful. In September 2014, 
ICASA published a new MTR structure. MTRs were set at R 0.16 until 2015, they are planned to 
drop to R 0.13 by 2016. 
4.114.  Internet development has been slow and the penetration rate is low (9%). South African 
internet user numbers have increased at a much slower pace than in other African countries; in 
2008, they represented only 9% of Africa's total internet users. In 2007, 90% of ADSL 
subscriptions were provided by Telkom, Vodacom, and MTN. Other internet providers include Internet Solutions, Neotel, MWeb, Vox Telecom, Cell C, iBurst, Sentech, Verizon Business, and 
Data Pro. Many remote villages are now connected to the internet through public terminals in 700 
post offices. Some 3.9 million active unique brow sers were registered in South Africa in May 2007  
4.115.  The South African Post Office (SAPO) provides postal and related services in 2,250 offices. 
SAPO has a universal service obligation (providing services even though they are not commercially 
viable; hence giving citizens equal access to a basic letter service). It was granted exclusive rights and privileges, including a monopoly on letters up to 1 kg. SAPO operates under a 25-year licence.  WT/TPR/S/324 • South Africa 
 
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  4.4.2  Financial services 
4.116.  South Africa has a relatively well-devel oped financial services framework.  The South 
African Reserve Bank (SARB) is responsible for commercial bank regulation and supervision, and 
the Financial Services Board (FSB) regulates insurance activities. The National Credit Regulator 
(NCR), established under the National Credit Act (Act No. 34 of 2005), regulates the activities of 
credit providers.  
4.117.  The Financial Sector Regulation Bill (FSRB), due to be adopted in 2015, seeks to establish 
a new regulatory oversight system in South Africa. Under the new system (referred to as the twin 
peaks model), prudential and market conduct regulation will be split between the SARB and the Financial Services Board (FSB) respectively. Purs uant to the FSRB, a newly created Prudential 
Authority within the SARB will be responsible for the prudential supervision of banks, insurers, 
financial conglomerates and financial market infrastructures. A standalone market conduct 
authority (the Financial Sector Conduct Authority – FSCA) will be established with a mandate to ensure the fair treatment of customers by financ ial institutions, and enhance the efficiency and 
integrity of the financial system. The FSCA will replace the current Financial Services Board. 
4.4.2.1  Banking and othe r credit institutions 
4.118.  Although South Africa's economy was noticeably affected by the global economic crisis 
(Section 1.1), its banking industry, the biggest and the most developed in Africa, was relatively 
well buffered. In fact, although banking activities were weaker due to low GDP growth, a bank crisis was avoided in South Africa as the country's banks have limited foreign exposure, and the regulatory framework is relatively solid. 
4.119.  South Africa's banking industry comprises 34 commercial banks (including three mutual 
banks) and 43 international banks with authorized representative offices in South Africa. Four large banks, i.e. Standard Bank, FirstRand, Barclays Africa Group and Nedbank collectively account 
for some 83% of total banking assets. 
4.120.  Bank penetration pursued its steady growth  during the review period. The proportion of 
the population with access to financial servic es grew from 63% in 2008 to 75% in 2013. The 
recent establishment of the Social Security Agency has played a significant role in this 
performance, as a bank account is required for social security payments. 
4.121.  The business of banking (including other related financial institutions) is regulated through 
the Banks Act, the Mutual Banks Act (Act No. 124 of 1993), and the Co-operative Banks Act 
(No. 40 of 2007). The minimum capital requirements, for establishing a domestic or foreign bank, 
are: R 250 million for commercial banks and R 10 million for mutual banks. The two forms of banks may provide the same services. Branches and subsidiaries of foreign-owned banks are 
subject to the same supervisory requirements as domestic banks.  
4.122.  Under the Co-operative Banks Act (No. 40 of 2007), deposit-taking financial services 
co-operatives may register as banks. Hence, they  would be under the supervision of the Central 
Bank giving depositors with co-operative banks the same level of protection as depositors with 
formal commercial banks.  
4.123.  In 2012, the Minister of Finance appr oved the SARB Bank Supervision Department's 
amended regulations, to implement the Basel III standards. According to the authorities, the 
phase-in period for the Basel III requirements began on 1 January 2013 and is anticipated to last 
through 2019. 
4.4.2.2  Insurance 
4.124.  South Africa's insurance activities faced noticeable challenges in recent years, as the 
industry's overall claims ratio increased steadily  from 62% in 2011, to 66% in 2012, and 68% in 
2013. The increase was attributed to weather-related claims (which include the record-breaking 
Gauteng hail damage of November 2013). In addi tion, the recent weakening of the rand also WT/TPR/S/324 • South Africa 
 
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  affected the cost of motor claims, as between 65% and 70% of motor repair costs largely relate to 
imported parts.35 
4.125.  In 2013, there were 78 long-term insurers, 87 short-term insurers, 6 reinsurers and 
11 captive insurers (excluding cell captive insurers).36 
4.126.  South Africa's legislative framework of in surance activities did not change significantly 
during the review period. Insurance activities are regulated mainly by the Long-Term Insurance 
Act (Act No. 52 of 1998) and the Short-Term In surance Act (Act No. 53 of 1998). In 2008, the 
Insurance Laws Amendment Bill, 2008 was approv ed and the Insurance Laws Amendment Act 
(Act No. 27 of 2008) (ILAA) was signed by the President. The ILAA addresses technical and regulatory issues in both Acts, closes certain regulatory gaps, improves certain provisions and 
updates outdated references.  
4.127.  The FSB is in charge of regulating insurance activities in South Africa. Any person carrying 
on insurance or reinsurance business is required to be registered for a specific class or classes of business. Registration criteria did not change du ring the review period; the requirements are the 
same for national and foreign companies. Foreign insurers/reinsurers must be incorporated in 
South Africa and be registered with the supervisory authority to carry on insurance business in South Africa. Insurance companies in South Africa are allowed to insure risk located abroad.  
4.128.  Any sale or transfer of 25% of the shares in  a local insurer or reinsurer or its holding entity 
requires regulatory approval. The FSB evaluates whether the transaction is in the best interests of the public. 
4.129.  The minimum capital requirements are R 10 million for long-term insurers, and R 5 million 
for short-term insurers. The Registrar may, however, relax the minimum capital adequacy 
requirement for a specific insurer upon conditions and for the duration that the Registrar determines necessary. The actual capital will, howe ver, be dictated by the type and volume of 
business to be conducted, as set out in the five -year projections submitted with the application. 
Before the applicant is registered as a long-term or short-term insurer, the company auditors must confirm that the required capital has been paid. Th e Registrar must be satisfied that the proposed 
shareholders have the financial means to provide the minimum start-up capital as well as the 
ability to provide further capital to the insurer when required.  
4.130.  Compulsory insurances in South Africa consist of motor third-party bodily injury or death 
cover, and workers' compensation insurance, and they are both government-owned.  
4.4.3  Transport 
4.131.  Transport, storage, and communication accounted for 9.2% of GDP in 2014 (Table 1.1). 
The subsector comprises a wide range of service pr oviders, covering all modes of transport (air, 
road, rail, sea).  
4.132.  Transnet, a state-owned enterprise is the main player in the sector, operating and 
controlling South Africa's freight infrastructure through its five subdivisions: Transnet Freight Rail 
(freight rail), Transnet Rail Engineering (rolling stock maintenance), Transnet National Ports 
Authority (formerly the National Port Authority (NPA),  in charge of the landlord function for ports), 
Transnet Port Terminals (port and cargo terminals management), and Transnet Pipeline (petroleum and gas products storage). 
4.133.  The Department of Transport (DoT) develops, coordinates, and implements transport 
policies. It has established several public entities that are in charge of transport services. These include the: South African National Roads Agen cy Ltd.; Cross-Border Road Transport Agency; 
Passenger Rail Agency of South Africa; South Afri can Civil Aviation Authority; Airports Company 
South Africa Ltd.; Air Traffic and Navigation Se rvices Company Ltd.; and South African Maritime 
Safety Authority.  
                                               
35 Online information. Viewed at: http://www.pwc.co.za/en/assets/pdf/insurance-industry-analysis-
march-2014.pdf . 
36 Online information. Viewed at: http://www.imf.org/external/pubs/ft/scr/2015/cr1556.pdf . WT/TPR/S/324 • South Africa 
 
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  4.134.  The vision of the Department of Transport,  as expressed in their Public Transport Strategy 
(2007), is to phase in a lasting legacy of integrated rapid transport service networks in metropolitan cities, smaller cities and rural districts that will ensure sustainable, equitable and uncongested mobility in liveable cities and districts.  According to this strategy, metropolitan cities 
aim to achieve a significant shift of work trips from cars to public transport networks by 2020. 
4.135.  South Africa's transport sector faces several challenges, including high logistics costs, poor 
conditions of the secondary road network, and the skills shortage in the sector.  
4.136.  The transport sector is central to South Africa's most important national development 
plans, i.e. the National Development Plan (NDP) and the New Growth Path (NGP). The NDP aims to 
develop a safe and affordable public transport ne twork to fight urban poverty, while the NGP seeks 
to drive job creation through large investments in transport infrastructure.  
4.137.  In 2013, the National Transport Master Pl an (Natmap) was launched, aiming to position 
transport as an enabler for social and economic development by rolling out infrastructure and services that respond to the needs of all So uth Africans and ensure the country meet its 
millennium development goals. The initiative addresses potential long-term plans for freight and 
passenger services across all transport segments. It also includes components related to pipeline development, financing fuel supply, enviro nmental issues, and regulatory issues.  
4.138.  Several pieces of legislation regulate transport services in South Africa. Among legislative 
steps taken during the review period, the Transport Laws and Related Matters Amendment Act, 2013 (Act No. 3 of 2013) aims, inter alia , to allow the Cross-Border Road Transport Agency to 
collect tolls on behalf of Sanral.  
4.139.  The Civil Aviation Act (2009) was promulgated to harmonize and rationalize safety and 
security legislation for aviation to ensure compliance with International Civil Aviation Organization standards, and the Air Service Licensing Amendm ent Act (2008) addresses corporate governance 
issues relating to the Air Services Licensing Council.
37 
Air transport 4.140.  South Africa's three main airports (Johannesburg's OR Tambo, Cape Town International, 
and Durban's King Shaka International)
38 are key points of entry for visitors and investors. They 
are a fundamental factor for the performance of the tourism sector in South Africa.  
4.141.  State-owned companies (South African Airways (SAA), and SA Express) and privately 
owned airlines (Comar, Interair, 1 Time, Airlink, Airlink Regional, and Pelican Air Services) operate 
in South Africa. SAA, which is wholly owned by Transnet, serves more than 700 world destinations 
and 20 domestic routes. In 2009, 107 international carriers were operating from South Africa 
under bilateral air service agreements. Cabotage is  not allowed. South Africa does not have any 
open skies agreements, but has started to renegoti ate and review existing agreements in line with 
the key principles of the Yamoussoukro Decision (YD) within the continent. 
4.142.  Airports Company South Africa (ACSA) is a major public entity in terms of Schedule 2 of 
the Public Finance Management Act (PFMA) (Section 3.3). ACSA is majority owned i.e. 70% is 
owned by the South African Government through the Department of Transport (DoT); the Public Investment Corporation (PIC) owns 20%; whilst black economic empowerment shareholders and employees hold the remainder. The company is legally and financially autonomous and operates 
under commercial law. ACSA aims to ensure airport capacity, and to facilitate the movement of 
passengers and goods; this involves management of transport costs and infrastructure to contribute to growth and development programmes. 
4.143.  Air Traffic and Navigation Services (ATNS) is established under the Air Traffic and 
Navigation Air Services Company Act, 1993 (Act No. 45 of 1993), and listed in Schedule 2 of the PFMA. ATNS is responsible for providing safe, effi cient and cost effective air traffic management 
                                               
37 Online information. Viewed at: 
http://www.transport.gov.za/Portals/0/An nual%20Reports/12%20DoT%20Annual%20Report.pdf . 
38 Seven others are for domestic us e only: Bloemfontein, Ea st London, George, Kimberley, Pilanesburg, 
Port Elizabeth, and Upington. WT/TPR/S/324 • South Africa 
 
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  solutions and associated services on behalf of the State in accordance with the International Civil 
Aviation Organization (ICAO) Standards and Recommended Practices, and the South African Civil Aviation Regulations. 
4.144.  During 2014-15, ACSA's airports handled 35.7 million passengers. OR Tambo International 
Airport, the main international air gateway into South Africa and the SADC region, processes some 
19 million passengers and over 200,000 air traffic movements a year and also facilitates over 300,000 tonnes of cargo a year. It is projected to handle 30 million passengers and 360,000 air 
traffic movements by 2024.
39 
4.145.  According to the authorities, South Africa only allows foreign ownership in one of its 
designated national airlines, up to a maxi mum of 25% of the equity of the company. 
4.146.  In 2013, South African Airlines and Jet Ai rways, India's premier international airline, 
announced a code sharing agreement that would enable seamless air travel connectivity to several 
business centres in India and South Africa.  
Maritime services 
4.147.  The development of South Africa's ports is  a key component of the National Growth Path 
(NGP). Several challenges continue to face port activities. These include domestic transit, trans-shipment activities, costs and wait time s for importers and exporters. The Government 
policy is aimed at increasing South Africa's presence in international maritime transport services, 
by increasing the number of vessels sailing under South Africa's national flag, and providing a clear framework for investors.  
4.148.  The country's ports handle over 430 million tonnes of varied cargo types, carried on over 
9,000 ship calls a year. The nine commercial ports are crucial to South Africa's transport, logistics 
and socioeconomic development. About 98% of South Africa's exports are conveyed by sea. 
4.149.  The National Ports Act (Act No. 12 of 2005) enacted in 2005 provides for the establishment 
of the National Ports Authority and an independen t National Port Regulator, and stipulates that 
certain ports should be administered by the National Ports Authority. It is not clear which provisions of this law have been implemented.  
4.150.  The National Port Regulator is mandated to ensure "equal" access, and monitor Transnet 
NPA activities. It has the responsibility to, inter alia , exercise economic regulation of the ports 
system in line with the Government's strategic objectives; promote equity of access to ports and to facilities and services provided in ports; monitor the activities of the National Ports Authority to 
ensure compliance with the Act; adjudicate complaints and appeals against the Port Authority; 
approve or reject the tariffs set by the Port Au thority; promote and regulate competition; and 
regulate the provision of adequate, affordable  and efficient port services and facilities. 
4.151.  Transnet National Ports Authority (NPA) controls South Africa's eight commercial ports: 
Cape Town, Durban, East London, Mossel Bay, Port Elizabeth, Richards Bay, Saldanha and Ngqura. The eighth port, Ngqura, officially opened on  16 March 2012 and has a current capacity of 
1.2 million TEUs for 3 berths which will later increase to a 2.8-million-TEU capacity for 4 berths.
40 
Each port handles different commodities, and offers different types of services and facilities (Table 4.3). Tariffs are also set by Transnet.  
                                               
39 Online information. Viewed at: 
http://www.gcis.gov.za/sites/www.gcis.gov.za/files/ docs/resourcecentre/yearbook/2013-4Transport.pdf . 
40 T r a n s n e t  o f f i c i a l  s i t e  o n l i n e  i n f o r m a t i o n .  V i e w e d  a t :  
http://www.transnetnationalportsauthority.net/OurPorts/Ngqura/Pages/Overview.aspx . WT/TPR/S/324 • South Africa 
 
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  Table 4.3 Port activities, 2015  
Port Activity 
Cape Town A full service, general cargo port; dry docks and syncrolift available for ship repairs; extensive 
pre-cooling facilities at the fruit termin al to cater for deciduous fruit exports 
Durban South Africa's main general cargo, bulk liqui d, and container port for a wide range of 
commodities (e.g. coal, mineral ores, granite, chem icals, petrochemicals, st eel, forest products, 
citrus products, sugar, and grain); al so has a dry dock for ship repair 
East 
London The only river-based port in South Africa; offers  container, automotive, break bulk, bulk grain, 
and bulk liquid (refined petroleu m products) facilities; imports are mainly containerized vehicle 
components, vehicles, wheat, timber, and petroleu m; exports are mainly motor vehicles, steel, 
maize, and agricultural products 
Mossel Bay Provides off-shore handling faci lities that enable import and export of refined products and 
servicing the local fishing industry 
Ngqura A world class deep water transhipment hub offe ring an integrated, efficient and competitive port 
service for containers on transit to the global market and within  the Sub-Saharan Africa region. 
It is the only one in South Africa that has an  environmental authorizat ion (Record of Decision) 
for its construction and operation 
Port 
Elizabeth Handles imports of containerized components an d raw materials for the vehicle manufacturing 
industry; also handles exports of agricultural pr oducts, timber, wool, citrus and deciduous fruit, 
manganese ore, motor-vehicle-related products, and steel 
Richards 
Bay Has four cargo terminals: (i) the dry bulk te rminal handles imports and exports of ores, 
minerals, and woodchips; (ii) the multi-purpose terminal handles break bulk cargoes, including ferrochrome, pig iron, steel, fo rest products, granite, alumin ium, bagged cargo, containers, 
heavy lifts, and abnormal loads; (iii) a coal te rminal, one of the largest in the world, with a 
current capacity to export 71 million tonnes per annum; and (iv) a chemic al tank farm for liquid 
bulk products stored in tanks 
Saldanha The only iron-ore handling port in South Africa; also handles base metals, steel, mineral sands, 
granite, and crude oil 
Source: Government Communication and Information System (2008), South Africa Yearbook 2007/08 , 
March; Department of  Transport (2008), Economic Analysis: Transport Picture , First Quarter, May; 
National Ports Authority online information. Viewed at: http://www.transnetnationalportsauthority.net ; and information provided by the South African 
authorities. 
4.152.  In 2013, South Africa processed 152 million tonnes (an increase of 9% compared to 2012) 
of cargo through its primary seaport at Durban, Richards Bay, and other ports along the country's coast.  
4.153.  The South African Maritime Safety Authority (SAMSA) is responsible for maritime safety 
issues (e.g. ship registration, marine incidents,  and vessel traffic). In 2008 SAMSA's mandate was 
expanded to include the regulation of marine activities on South Africa's inland waters.  
4.154.  Cabotage is allowed. South Africa allows local and foreign-owned vessels on international 
trade routes to carry its coastal cargoes.  
4.155.  South Africa is a member of the International Maritime Organization. It has signed several 
international maritime agreements, including the Indian Ocean Memorandum of Understanding 
(MoU) on Port State Control and the West and Ce ntral Africa MoU on Port State Control (Abuja 
MoU). South Africa signed an agreement to establish the subregional Maritime Rescue Coordination Centre (MRCC) in South Africa and subregional maritime subcentres in the Comoros, 
Madagascar, Mozambique and Namibia. 
Land transport 4.156.  Land transportation plays an import ant role in the transport of passengers and 
merchandise in South Africa. The South African Nati onal Roads Agency (SANRAL) is in charge of 
national road maintenance; other roads are maintained by provincial and municipal governments.  
4.157.   South Africa has a 750,000 km-long road network, of which SANRAL manages 19,667 km 
of paved roads. National roads comprise tolled and non-tolled roads. Tolling provides SANRAL with 
funding to maintain and upgrade roads; some 1, 300 km of its 2,400 km tolled roads have been WT/TPR/S/324 • South Africa 
 
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  given in concession to private companies, through public-private partnership. Road infrastructure 
is important as some 1.4 billion tonnes of merchandise are carried by road each year.41  
4.158.  The non-toll road network accounted for 83.1% of the national network. Public funds are 
allocated to SANRAL to maintain the non-tolled ro ads. In 2013, SANRAL awarded 202 contracts for 
new works, rehabilitation, improvement and routine development. Between 2010 and 2015, 
R 75 billion was used for road infrastructure, maintenance and upgrading; as part of rural development, roads in ﬁve rural development nodes – Magaliesburg, Winterveld, Hammanskraal, 
Rust de Winter and Bantu Bonke – were upgraded.  
4.159.  Given the importance of cross-border tran sport in South Africa and for SACU as a whole, 
since 1998 the Cross-Border Road Transport Agency  (C-BRTA) has been in charge of improving 
cross-border merchandise and passenger road traffic, introducing competition, and reducing 
constraints to traffic. The agency is financed by fees charged for issuing cross-border permits. 
South Africa has signed multilateral and bilateral agreements to facilitate and encourage cross-border road flow of merchandise and passengers.
42 
4.160.  Although South Africa does not allow cabotage in road transport, the prohibition may be 
lifted under certain conditions, such as cases where there is no South African carrier who can provide a similar service and where lifting the prohibition is in the best interest of South Africa.  
4.161.  Some 180 million tonnes of merchandise are carried by rail annually. The railway sector 
continues to be dominated by the State. The state-owned company Transnet Freight Rail manages the largest railroad system in Southern Africa; a network (around 22,000 km) connects 
South Africa's ports and the hinterland with other sub-Saharan networks; 1,500 km are 
heavy-haul lines.
43 Transnet Freight Rail operates mainly general freight business and the 
transport of iron and coal.  
4.162.  In March 2013, Transnet signed an agr eement with the China Development Bank that is 
expected to yield a loan of about US$5 billion to  finance the country's massive rail infrastructure 
upgrade programme. In 2013, Transnet Freight Rail upgraded its iron ore line to move 60 million tonnes a year of the steelmaking material from mines in the Northern Cape to the Saldanha Bay 
port for export. 
4.163.  South Africa's passenger rail companie s (South African Rail Commuter Corporation, 
Metrorail, and Shosholoza Meyl) merged into the Passenger Rail Agency of South Africa (PRASA).
44 
PRASA provides commuter rail services in urban metropolitan areas, and regional and 
long-distance passenger services. The Government is implementing the National Passenger Rail 
Plan to improve passenger rail infrastructure. In addition, the construction of the 80-kilometre Gautrain Rapid Rail Link, connecting Johannesburg, Pretoria, and O.R Tambo International Airport, 
was completed in 2012 to improve passenger rail services.  
4.4.4  Tourism 4.164.  Tourism remains a main contributor to South Africa's GDP and foreign income; and it is 
positioned as one of the six core pillars of gr owth in South Africa's New Growth Path (NGP) 
framework. The Industrial Policy Action Plan (IPAP2 ) has identified the sector as one of the areas 
expected to contribute to the development of rural areas. 
4.165.  In 2013, South Africa recorded 9.6 million to urist arrivals, an increase of 4.7% over 2012. 
Africa and Europe are the main origins for tourists arriving to South Africa.  
                                               
41 The main road freight corridors are Gauteng- Durban, Gauteng-Cape Town, and Gauteng-Maputo. 
42 Multilateral agreements include the SADC Protocol  on Transport, Communications, and Meteorology, 
and the SACU Memorandum of Understanding (MoU). South Africa signed bilateral agreements with 
Mozambique, and an MoU with Namibia and Botswana (Government Communication and Information System, 
2008). 
43 SAinfo online information, "South Af rica's transport network". Viewed at: 
http://www.southafrica.info/business/e conomy/infrastructure/transport.htm . 
44 Department of Transport (2015). WT/TPR/S/324 • South Africa 
 
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  4.166.  In 2014, travel and tourism contribution to GDP was R 357 billion (9.4% of GDP) and 
created 1,497,500 jobs (9.9% of total employment).  
4.167.  The hosting of the 2010 International Football Federation (FIFA) World Cup has boosted 
the tourism industry in South Africa by attracting visitors, expanding tourism and other 
infrastructure, and showcasing the South African destination to the world. 
4.168.  With a view to realizing South Africa's tourism potential and ensuring that the country's 
investment in the 2010 World Cup is fully leveraged, the National Department of Tourism (NDT), 
under the Ministry of Tourism (established during the review period), initiated and managed in 
2010 an inclusive process to draft a National Tourism Sector Strategy (NTSS) to inspire and accelerate the responsible growth of the touris m industry from 2010 to 2020. Various incentive 
schemes are available to promote tourism services (Section 3, Table A3.4).  
4.169.  The World Economic Forum's Travel and To urism Competitiveness Report of 2013 indicated 
that the strengths of South Africa's tourism industry lie in its natural sites and cultural resources, price competitiveness for hotel rooms, a favourable tax regime, good air transport infrastructure, 
and favourable policy rules and regulations. In fact, the tourism legislative framework is conducive 
to the sector's development as the country ha s improved its laws and regulations, with 
well-protected property rights and few visa requirements for visitors. In addition, tourism 
continues to be one of the five priority sectors in the country's growth plan, and the Government 
has reviewed tourism legislation in an effort to streamline it further.
45 However, poor safety and 
security conditions together with lack of qual ified human resources remain among the challenges 
in South Africa's tourism industry.  
4.170.  The Tourism Act (Act No. 72 of 1993) is the main piece of legislation regulating tourism 
and related activities. The Act aims to regulate the subsector by coordinating the activities of those engaged in tourism and establishing standards for tourism facilities and other services provided to 
tourists. 
4.171.  The Tourism Grading Council of South Af rica assesses and accredits accommodation and 
food and beverage outlets on a voluntary basis, to award star grading. The Act also established the 
South African Tourism Board (SATOUR), and introduced provisions on the membership and 
composition of the Board, and on training and registration of tourist guides.  
4.172.  Requirements for tourism operators did not change during the review period. All tourist 
guides must be registered in each province in wh ich they wish to work as guides. There is also a 
national Registrar of Tourist Guides. Foreigners may only register as tour guides if they have a 
valid work permit or have obtained South African residency, completed the relevant accredited guiding training, and are registered with the provinci al registrar of tour guides in the province in 
which they wish to operate. 
4.173.  Foreign travel agents must register (like most other businesses) under the South African 
Companies Act, and comply with any relevant regulations including those of the IATA. Most travel 
agencies in South Africa are members of the Association of South African Travel Agents (ASATA); 
membership is voluntary. However, for a foreig n-owned travel agent to be registered as a 
member, ASATA requires the operating enterprise to be registered in South Africa (under the Companies Act), and all foreign directors to have a South African Bank Account; and a letter of 
"comfort" from the parent company, if based outside South Africa, as a type of insurance should 
the local-based operation default on its contracts. 
                                               
45 Online information. Viewed at: 
http://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf .  WT/TPR/S/324 • South Africa 
 
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  REFERENCES 
Chamber of Mines of South Africa (2015), Facts & Figures 2013. Viewed at: 
https://commondatastorage.googleapis.com/comsa/f_f_2015_final.pdf . 
Department of Minerals and Energy (2015). Viewed at: 
http://www.energy.gov.za/files/aboutu s/DoE-Strategic- Plan-201 5-2020.pdf . 
"State Diamond Trader Officially Launched", Mining Weekly , 29 February 2008. Viewed at: 
http://www.miningweekly.com/article/state-dia mond-trader-officially-launched-2008-02-29 . 
 
 WT/TPR/S/324 • South Africa 
 
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  5  APPENDIX TABLES 
Table A1.1 Merchandise export s by product group, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 73,966 53,864 82,626 107,946 98,872 95,112 90,612 
 (% of total)  
Total primary products 48.2 52.8 50.9 48.7 47.2 50.1 47.5 
 Agriculture 9.5 12.4 12.0 10.3 10.6 11.7 12.6 
 Food 7.3 10.1 10.0 8.3 8.8 9.8 10.4 
 1121 Wine of fresh grapes 
 (including fortified wine) 1.0 1.3 1.0 0.7 0.8 0.9 0.9 
 0571 Oranges, mandarins, 
 citrus hybrids, fresh or dried 0.7 0.9 0.8 0.6 0.7 0.8 0.8 
 Agricultural raw material 2.2 2.3 2.1 1.9 1.8 1.9 2.1 
 2513 Chemical wood pulp, 
 dissolving grades 0.5 0.7 0.7 0.7 0.6 0.6 0.8 
 Mining 38.7 40.4 38.9 38.4 36.6 38.3 34.9 
 Ores and other minerals 12.0 13.2 13.8 15.1 14.9 16.2 14.5 
 2816 Iron ore agglomerates 
 (sinters, pellets, briquettes, 
 etc.) 3.2 5.4 6.2 6.2 5.5 6.1 4.9 
 2815 Iron ores and 
 concentrates, not  agglomerated 0.1 0.4 0.5 2.1 2.3 2.8 2.5 
 2877 Manganese ores and 
 concentrates 2.6 1.0 1.7 1.1 1.2 1.6 1.8 
 2879 Other non-ferrous base 
 metals, ores and concentrates 1.3 1.3 1.5 1.6 1.3 1.5 1.5 
 2878 Ores and concentrates 
 of molybdenum, niobium, etc. 0.9 1.2 1.0 1.1 1.3 1.1 1.0 
 Non-ferrous metals 17.0 16.0 14.4 12.9 10.3 11.5 10.0 
 6812 Platinum unwrought, 
 unworked or semi-
 manufactured 13.3 12.6 11.3 10.2 8.0 8.8 7.2 
 6841 Aluminium and 
 aluminium alloys, unwrought 1.8 1.9 1.5 1.3 1.0 1.2 1.2 
 6842 Aluminium and 
 aluminium alloys, worked 1.0 0.9 0.8 0.7 0.7 0.6 0.7 
 Fuels 9.6 11.2 10.7 10.5 11.4 10.6 10.5 
 3212 Other coal, whether or 
 not pulverized, not 
 agglomerated 6.3 7.7 6.6 6.8 6.7 6.0 5.5 
Manufactures 51.5 46.8 48.1 41.0 43.2 42.3 46.7 
 Iron and steel 12.0 9.5 9.7 7.3 6.8 6.5 7.5 
 6715 Other ferro-alloys (excl. 
 radio-active ferro-alloys) 6.1 4.4 4.8 3.6 3.0 3.2 3.9 
 Chemicals 7.7 7.6 7.4 6.7 7.4 7.2 7.8 
 Other semi-manufactures 7.0 6.6 7.3 6.1 6.4 6.4 7.1 
 6672 Diamonds (excl. 
 industrial, sorted) not 
 mounted/set 3.1 2.4 2.3 2.0 2.0 2.2 2.7 
 Machinery and transport 
 equipment 21.9 20.0 19.7 17.6 19.3 18.8 20.6 
 Power generating machines 0.3 0.4 0.3 0.3 0.4 0.4 0.5 
 Other non-electrical machinery 7.0 6.2 6.1 5.8 6.1 5.8 5.9 
 7436 Filtering and purifying 
 machines for liquids/gases 4.2 3.0 2.6 2.6 2.2 2.1 2.1 
 Agricultural machinery and 
 tractors 0.1 0.1 0.1 0.1 0.2 0.2 0.2 
 Office machines & 
 telecommunication equipment 1.2 1.3 1.3 1.1 1.2 1.3 1.7 
 Other electrical machines 1.1 1.2 1.4 1.3 1.4 1.4 1.4 
 Automotive products 10.5 9.4 9.4 7.9 8.7 8.4 9.6 WT/TPR/S/324 • South Africa 
 
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   2008  2009  2010  2011  2012 2013 2014  
 7812 Motor vehicles for the 
 transport of persons, n.e.s. 6.1 5.7 5.6 4.4 4.1 3.9 4.8 
 7821 Goods vehicles 2.2 1.6 1.8 2.0 3.1 3.1 3.3 
 7843 Other motor vehicle 
 parts and accessories of 722,  781 to 783 1.2 1.2 1.2 1.1 1.1 1.0 0.9 
 Other transport equipment 1.8 1.5 1.3 1.3 1.5 1.5 1.6 
 Textiles 0.4 0.4 0.5 0.4 0.4 0.4 0.4 
 Clothing 0.2 0.2 0.5 0.5 0.5 0.5 0.5 
 Other consumer goods 2.2 2.4 3.0 2.4 2.4 2.4 2.7 
Other 0.3 0.4 0.9 10.3 9.5 7.6 5.8 
 Gold 0.2 0.4 0.3 9.9 9.0 7.2 5.4 
 9710 Gold, non-monetary 
 (excl. gold ores and 
 concentrates) 0.2 0.4 0.3 9.9 9.0 7.2 5.4 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/324 • South Africa 
 
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  Table A1.2 Merchandise imports by product group, 2008-14 
(US$ million and %) 
 2008 2009  2010  2011  2012 2013 2014  
Total (US$ million) 87,593 63,766 82,949 102,699 104,144 103,441 99,893 
 (% of total) 
Total primary products 31.8 30.7 28.9 31.0 32.3 31.2 32.7 
 Agriculture 6.1 7.4 7.6 7.9 8.1 7.4 7.2 
 Food 5.2 6.5 6.6 6.8 7.2 6.6 6.3 
 0412 Other wheat 
 (including spelt) and 
 meslin, unmilled 0.5 0.4 0.3 0.6 0.4 0.4 0.5 
 0423 Rice, milled, semi-
 milled 0.5 0.7 0.5 0.5 0.7 0.6 0.4 
 Agricultural raw material 0.9 0.9 1.0 1.0 0.9 0.9 0.9 
Mining 25.7 23.3 21.3 23.2 24.2 23.7 25.5 
 Ores and other minerals 2.4 1.0 1.3 1.4 1.1 1.2 0.9 
 2852 Alumina (aluminium 
 oxide) 0.7 0.6 0.6 0.6 0.4 0.5 0.5 
 Non-ferrous metals 1.0 0.9 1.1 1.1 1.1 1.0 1.3 
 Fuels 22.3 21.4 19.0 20.7 22.0 21.5 23.3 
 3330 Crude oils of 
 petroleum and 
 bituminous minerals 17.1 16.1 13.5 13.7 15.2 14.2 16.2 
Manufactures 61.5 63.8 64.6 63.0 61.6 62.8 60.7 
 Iron and steel 1.8 1.6 1.6 1.8 1.6 2.0 1.6 
 Chemicals 9.8 10.5 11.1 10.6 10.7 10.6 10.9 
 5429 Medicaments, n.e.s. 1.3 1.7 1.6 1.4 1.5 1.5 1.3 
 5514 Mixtures of 
 odoriferous substances,  industrial use 0.1 0.2 0.3 0.3 0.4 0.5 0.5 
 5989 Chemical products 
 and preparations, n.e.s. 0.2 0.3 0.3 0.3 0.4 0.4 0.5 
 Other semi-manufactures 6.4 6.5 6.5 6.1 6.0 6.2 6.2 
 6672 Diamonds (excl. 
 industrial, sorted) not 
 mounted/set 1.0 0.7 0.7 0.7 0.6 0.6 0.6 
 Machinery and transport 
 equipment 35.0 34.8 35.0 34.7 33.6 34.3 32.5 
 Power generating 
 machines 2.2 1.9 2.2 2.1 1.9 2.0 2.1 
 7165 Generating sets 0.5 0.4 0.1 0.1 0.2 0.7 0.9 
 Other non-electrical 
 machinery 10.6 10.0 8.5 9.4 9.8 9.9 8.9 
 7232 Mechanical shovels, 
 etc., self-propelled 0.9 0.4 0.4 0.7 0.8 0.7 0.6 
 7239 Parts n.e.s., of  
 machinery of 723 and 
 744.3 0.6 0.5 0.5 0.6 0.6 0.7 0.6 
 7284 Machinery and 
 appliances for particular 
 industries, n.e.s. 0.6 0.6 0.4 0.5 0.5 0.6 0.5 
 Agricultural machinery 
 and tractors 0.7 0.7 0.5 0.7 0.8 0.8 0.8 
 Office machines & 
 telecommunication  equipment 8.4 9.4 9.9 8.7 7.9 8.6 8.3 
 7643 Radio or 
 television transmission 
 apparatus 1.7 1.9 2.2 2.1 1.9 2.2 2.0 
 7522 Data processing 
 machines, with at least  processing, imput and  output units 0.6 0.7 0.9 1.0 1.0 1.1 1.1 WT/TPR/S/324 • South Africa 
 
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   2008 2009  2010  2011  2012 2013 2014  
 7649 Parts and 
 accessories for 
 apparatus of 
 division 76 0.4 0.5 0.6 0.6 0.6 0.6 0.6 
 Other electrical machines 3.4 3.9 3.6 3.2 3.2 3.5 3.2 
 Automotive products 7.0 6.8 8.3 8.5 8.4 8.4 7.8 
 7812 Motor vehicles for 
 the transport of persons,  n.e.s. 3.1 3.7 4.9 4.9 5.0 5.3 4.7 
 7843 Other motor vehicle 
 parts and accessories of 
 722, 781 to 783 1.4 1.5 1.4 1.3 1.2 1.2 1.3 
 7821 Goods vehicles 1.3 0.6 1.0 1.4 1.6 1.2 1.1 
 Other transport equipment 3.3 2.9 2.5 2.7 2.4 1.8 2.2 
 Textiles 1.2 1.4 1.4 1.4 1.3 1.3 1.3 
 Clothing 1.1 1.7 2.0 1.9 1.7 1.8 1.9 
 Other consumer goods 6.3 7.3 7.0 6.6 6.5 6.5 6.4 
 8722 Instruments used in 
 medical, surgical or 
 veterinary sciences 0.5 0.6 0.5 0.5 0.5 0.5 0.5 
Other 6.7 5.5 6.5 6.0 6.2 6.1 6.6 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/324 • South Africa 
 
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  Table A1.3 Merchandise expo rts by destination, 2008-14  
(US$ million and %) 
 2008 2009  2010  2011  2012 2013 2014  
Total (US$ million) 73,966 53,864 82,626 107,946 98,872 95,112 90,612 
 (% of total) 
 Americas 13.4 11.1 11.2 10.1 10.4 9.4 9.3 
 United States 10.8 9.0 8.7 7.6 7.9 7.2 7.1 
 Other America 2.6 2.1 2.5 2.5 2.5 2.1 2.2 
 Europe 35.0 31.7 26.0 22.4 19.9 20.9 22.2 
 EU(28) 31.9 26.6 22.4 19.0 17.2 17.7 19.7 
 Germany 7.8 6.5 6.6 5.1 4.1 4.0 4.7 
 United Kingdom 6.6 5.6 4.4 3.6 3.4 3.5 3.8 
 The Netherlands 4.7 3.8 2.7 2.7 2.8 3.2 3.3 
 Belgium 2.8 2.4 2.1 2.0 1.9 2.1 2.7 
 Italy 2.2 2.0 1.7 1.6 1.4 1.1 1.2 
 EFTA 2.4 4.6 3.1 2.8 2.0 2.5 1.8 
 Switzerland 2.1 4.2 2.8 2.6 1.7 2.2 1.6 
 Other Europe 0.7 0.5 0.5 0.5 0.7 0.7 0.7 
 Commonwealth of 
 Independent States (CIS) 0.5 0.5 0.5 0.4 0.5 0.5 0.6 
 Africa 17.0 19.5 28.2 24.7 27.9 28.8 30.5 
 Botswana 0.0 0.0 5.1 4.2 5.1 4.8 5.3 
 Namibia 0.0 0.0 4.7 4.0 4.1 4.5 5.0 
 Mozambique 2.2 3.0 2.3 2.2 2.4 3.0 3.3 
 Zambia 2.7 2.6 2.1 2.2 2.7 2.8 3.0 
 Zimbabwe 2.3 3.0 2.6 2.3 2.4 2.5 2.5 
 Swaziland 0.0 0.0 2.1 1.5 1.5 1.6 1.7 
 Lesotho 0.0 0.0 1.6 1.5 1.6 1.5 1.5 
 D.R. Congo 1.5 1.1 1.0 1.0 1.5 1.4 1.4 
 Angola 1.2 1.3 0.9 0.8 1.0 1.1 1.2 
 Middle East 3.3 3.7 2.9 2.3 2.7 2.6 3.2 
 United Arab Emirates 1.0 1.1 1.0 0.9 1.0 1.3 1.5 
 Asia 29.9 32.5 30.6 30.0 28.7 30.2 28.1 
 China 5.8 10.5 9.8 11.6 10.5 12.7 9.6 
 Japan 11.0 7.6 7.8 7.1 5.8 5.9 5.4 
 Six East Asian Traders 6.6 7.1 6.3 6.0 6.5 6.3 6.7 
 Hong Kong, China 0.9 1.8 1.2 1.2 1.5 1.5 2.1 
 Korea, Republic of 2.0 1.7 2.0 2.1 1.5 1.3 1.5 
 Other Asia 6.5 7.3 6.7 5.3 6.0 5.4 6.5 
 India 3.1 3.8 3.7 3.1 3.8 3.2 4.2 
 Other 0.9 1.0 0.6 10.3 9.8 7.7 6.1 
 Areas n.e.s 0.2 0.0 0.4 10.1 9.7 7.5 6.0 
Memo:         
 SACU 0.0 0.0 13.4 11.1 12.4 12.4 13.4 
Source: UNSD Comtrade database. WT/TPR/S/324 • South Africa 
 
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  Table A1.4 Merchandise imports by origin, 2008-14 
(US$ million and %) 
 2008 2009  2010  2011  2012 2013 2014  
Total (US$ million) 87,593 63,766 82,949 102,699 104,144 103,441 99,893 
 (% of total) 
 Americas 13.4 12.8 11.7 12.3 11.7 10.2 10.1 
 United States 8.0 7.8 7.2 7.8 7.2 6.3 6.6 
 Other America 5.4 5.1 4.5 4.5 4.5 3.9 3.5 
 Brazil 1.9 1.9 1.7 1.6 1.6 1.6 1.4 
 Europe 33.2 34.1 32.9 31.9 29.4 30.0 29.4 
 EU(28) 31.3 32.2 31.1 29.9 28.0 28.4 27.8 
 Germany 11.3 11.7 10.9 10.4 9.8 10.3 10.0 
 United Kingdom 4.1 4.0 3.7 4.0 3.4 3.2 3.3 
 Italy 2.4 2.5 2.4 2.6 2.5 2.6 2.6 
 France 2.9 3.1 2.9 2.7 2.4 2.2 2.2 
 Spain 1.2 1.2 1.5 1.3 1.2 1.8 1.7 
 The Netherlands 1.4 1.8 1.7 1.4 1.7 1.6 1.4 
 Belgium 1.3 1.5 1.4 1.2 1.2 1.1 1.1 
 EFTA 1.1 1.3 1.4 1.5 0.9 1.0 0.9 
 Other Europe 0.8 0.5 0.3 0.6 0.5 0.7 0.7 
 Commonwealth of 
 Independent States (CIS) 0.4 0.7 0.2 0.3 0.4 0.6 0.6 
 Africa 8.6 7.5 10.0 9.6 11.9 11.8 13.3 
 Nigeria 2.2 2.9 2.7 3.0 3.6 3.5 5.1 
 Angola 3.1 2.1 2.4 1.5 2.7 1.9 2.0 
 Swaziland 0.0 0.0 1.2 0.9 1.1 1.1 1.1 
 Mozambique 0.5 0.7 0.6 1.0 1.2 1.2 1.0 
 Middle East 13.9 11.7 10.1 10.9 11.2 9.9 10.5 
 Saudi Arabia 6.3 5.0 3.9 4.3 7.6 7.8 7.1 
 United Arab Emirates 1.0 0.7 1.1 0.9 1.0 0.9 1.5 
 Asia 30.4 32.4 34.2 34.2 35.1 37.1 35.6 
 China 11.3 13.1 13.8 13.8 14.0 15.5 15.5 
 Japan 5.6 4.9 5.1 4.6 4.4 3.9 3.8 
 Six East Asian Traders 7.5 7.8 8.2 8.2 8.6 8.6 8.0 
 Thailand 2.0 2.1 2.2 2.2 2.6 2.7 2.4 
 Singapore 1.0 0.9 1.0 1.1 1.2 1.9 1.8 
 Korea, Republic of 1.6 1.8 2.1 2.2 2.2 1.8 1.5 
 Other Asia 6.0 6.7 7.0 7.6 8.0 9.0 8.3 
 India 2.6 2.8 3.4 3.9 4.4 5.2 4.6 
 Australia 1.9 1.7 1.6 1.5 1.4 1.3 1.1 
 Viet Nam 0.2 0.3 0.4 0.4 0.6 1.0 1.1 
 Other 0.2 0.8 0.9 0.7 0.4 0.3 0.4 
Memo:        
 SACU 0.8 0.2 3.0 2.6 2.7 2.8 2.7 
Source: UNSD Comtrade database. WT/TPR/S/324 • South Africa 
 
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  Table A3. 1 Technical regulations on foodstuffs, 2009  
Regulation (Government Notice No.) Product or activity  
Regulations related to powers and du ties of inspectors/analysts: final 
(R.328/2007) Inspectors duties  
Regulations relating to food-grade salt (R.184/2007) Salt 
Regulations relating to all bottled waters (R.718/2006) Bottled waters 
Regulations relating to objects intended for children in foodstuffs (R.28196/2005) Objects 
Regulations relating to marine biotoxins (R.491/2005) Marine toxins 
Regulations governing tolerance for fungus-produced toxins in foodstuffs 
(R.1145/2004) Mycotoxins 
Regulation relating to maximum levels for metals in foodstuffs (R.500/2004) Metals 
Regulations governing the labelling of foodstuffs obtained through certain 
techniques of genetic modification (R.25/2004) GMO labelling 
Regulations relating to the prohibition of th e sale of comfrey, foodstuffs containing 
comfrey, and jelly confectionery containing konjac (R.1408/2003) Comfrey food 
Regulations relating to the application of the Hazard Analysis Critical Control Point 
(HACCP) system (R.908/2003) HACCP 
Regulations regarding processed foodstuffs (R.723/2003) Processed foods 
Regulations relating to the fortification of certain foodstuffs (fortification mix 
suppliers) (R.504/2003)  Fortification 
Regulations governing the tolerances for certain seeds in certain agricultural 
products (R.1225/2002) Toxic seeds  
Regulations governing certain solvents in foodstuffs (R.911/2001) Solvents 
Regulation relating to perishable foodstu ffs: definition and declaration of certain 
perishable foodstuffs (R.952/1999) Perishable foodstuffs 
General hygiene requirements for food premises and the transport of food 
(R.918/1999), as corrected by R.723/2002 and amended by R.1125/2003 Hygiene/transport 
Regulations relating to milk and dairy products (R.1555/1997) Milk/dairy 
Regulation governing microbiological stan dards for foodstuffs and related matters 
(R.692/1997) Micro-biological standard 
food 
Regulation relating to edible fats and oils (R.1316/1996) Edible fats/oils 
Regulation relating to food colorants (R.1008/1996) Colorants 
Regulations governing the maximum limits  for pesticide residue that may be 
present in foodstuffs (R.246/1994), as amended by R.1047/2006 Maximum residue limits 
(MRLs) for pesticide  
Labelling and advertising of foodstuffs (R.2034/1993) Labelling/advertising 
Regulation governing the maximum limits  for veterinary medicine and stock 
remedy residues that may be present in foodstuffs (R.1809/1992) MRLs for vet medicines 
Regulation relating to the use of sweeteners in foodstuffs (R.3128/1991) Sweeteners 
Regulations prohibiting guar gum as a foodstuff (R.2554/1991) Guar gum 
Regulations governing the composition and labelling of raw boerewors, raw 
species sausage, and raw mixed-species sausage (R.2718/1990) Meat 
Regulations relating to baking powder  and chemical leav ening substances 
(R.2486/1990) Leavening substances 
Regulation governing radio activity in foodstuffs (R.1931/1990) Radio activity 
Regulation governing emulsifiers, stabilizers and thickeners and the amounts 
thereof that foodstuffs may contain (R.2527/1987) Emulsifiers stabilisers 
Use of certain food additives in ce rtain foods when wheaten products 
(R.2417/1987) Additives 
Regulations: jam, conserve, marmalade, and jelly (R.2627/1986) Jams  
Regulations relating to milking sheds and the transport of milk (R.1256/1986) Milking sheds 
Acids, bases, and salts: amounts thereof that foodstuffs may contain 
(R.115/1986) Salts 
Regulations relating to mayonnaise and other salad dressings (R.92/1986) Mayonnaise 
Regulations: soft drinks (R.1769/1985) Soft drinks 
Regulations relating foods for infants, young children, and children 
(R.1130/1984), as amended by R.734/2006 Children's food 
Regulations relating to irradiated foodstuffs (R.1600/1983) Irradiated foodstuffs  WT/TPR/S/324 • South Africa 
 
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  Regulation (Government Notice No.) Product or activity  
Regulation relating to anti-caking agents: amounts that may be used in foodstuffs 
(R.2507/1982) Anti-caking agents 
Regulations governing substances in wine, other fermente d beverages, and 
spirits: additives, amounts, and tolerances (R.2870/1981) Wine/spirits additives 
Regulations: preservatives and antioxidants (R.965/1977) Preservatives/antioxidants 
Regulation: mineral hydrocarbons in foodstuffs (R.230/1977) Hydrocarbons 
Regulations: restriction on the sale of food additives containing nitrite and/or 
nitrate and other substances (R.219/1975) Nitrite/nitrate additives  
Regulation: marine food (R.2064/1973) Marine food 
Regulations relating to food and water vessels (Act No. 36 of 1919) 
(R.1575/1971) Food/water vessels 
General regulations promulgated in terms of the Public Health Act, 1919 
(Transportation of Meat) (180 of 1967) Transport of meat 
Regulations (R.575/1930)  
Edible gelatine  Gelatine 
Unwholesome or poisonous substances in food  Packaging 
Ice-cream and ice-cream products  Ingredients 
Meat and fish, and their preparations: edible fats and edible oils  Meat/fish 
Tea  Tea 
Coffee, coffee mixtures, and preparations of coffee  Coffee 
Chicory  Chicory 
Cocoa and chocolate  Cocoa and chocolate 
Sugar, confectionary, dext rose, and icing sugar Sugar 
Note: Enforcing bodies are prov inces for imports and municipa lities for local production.  
Source: Provided by the South African authorities. WT/TPR/S/324 • South Africa 
 
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  Table A3. 2 Incentive schemes, 2015  
Scheme: objective Criteria  Type of incentive 
Investment support    
Black Business Supplier 
Development Programme 
(BBSDP):  to provide majority black-
owned enterprises with access to 
business development services  Majority black-owned (51% 
shareholding) enterprises; a 
significant representation of black 
managers in the management team; 
maximum annual turnover: 
R 12 million; 
minimum trading history of one year; 
if the enterprise is registered for less 
than a year, but has been operating 
previously, registration with local 
municipality and VAT registration or 
invoices must be submitted to 
confirm trade activity; 
compliance with commercial 
regulatory requirements  50% grant for the cost of approved 
tools, machinery and equipment to a 
maximum of R 800,000; and 
80% grant for approved training and 
business development services to a 
maximum of R 200,000. 
Business Process Services (BPS) 
Incentive : to attract investment and 
create employment via offshoring 
activities The applicant: must be a registered 
legal entity in South Africa performing BPS activities;  
must, by the end of three years from 
the start of operation of the new project or the expansion, have created at least 50 new offshore jobs in South Africa;  
must commence its commercial 
operations no later than six months from the date on which the BPS incentive grant was approved.  A base incentive as a tax exempt 
grant paid over three years for each offshore job created; 
A graduated bonus incentive paid as 
follows: 
 20% bonus for more than 400 but 
less than 800 offshore jobs; 
 30% bonus for more than 
800 offshore jobs.  
Cooperative Incentive Scheme 
(CIS):  to help cooperative 
enterprises to acquire competitive 
business development services  Incorporation and registration in 
South Africa under the 1991 Co-
operatives Act; 
operate in an emerging sector; must 
be an emerging cooperative owned 
by historically disadvantaged persons 
(HDPs); be established in rural or 
semi-urban areas; employ women, 
youth, and people with disability Maximum grant of R 350,000;  
90:10 matching grant; the DTI 
contributes 90% and the enterprise 
contributes 10%  
Critical Infrastructure 
Programme (CIP):  to support the 
construction of infrastructure to enable investment project or to expand existing investment in infrastructure or for new investment Private sector and public sector 
enterprises Private/public partnership (PPP) Non-refundable cash grant; cover 
between 10% and 30% of the total development costs of the qualifying infrastructure 
Employment Creation Fund 
(ECF): to develop the 'green 
economy,' the agriculture and agro-
processing value-chain, technology 
diffusion and commercialization, 
public employment creation, rural 
development and the business 
environment Private sector enterprises, non-
governmental organisations (NGOs,) 
non-profit organizations, community-
based organizations, industry 
associations, co-operatives, national, 
provincial and local government 
departments and agencies  Funding is available for innovative 
and relatively higher risk projects 
that are not likely to be funded 
through government's normal budget 
processes and or where the 
commercial financial sector is unable 
or unwilling to provide financial 
services WT/TPR/S/324 • South Africa 
 
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  Scheme: objective Criteria  Type of incentive 
Enterprise Investment 
Programme (EIP):  to stimulate 
growth and employment; and broaden participation. Two 
sub-programmes: (i) Manufacturing 
Investment Programme (MIP) to stimulate growth; and (ii) Tourism Support Programme (TSP) to stimulate employment and broaden participation Local and foreign-owned entities Investment grant of 15% to 30% 
towards qualifying investment in plant, machinery and equipment, and customized vehicles required for 
establishing or expanding production 
facilities or upgrading production capacity in clothing and textiles operation or to ensure that tourism projects create employment and promote tourism in new areas; investment of less than R 5million qualifies for a 30% grant; investment of R 5 million-R 30 million for 30%-15%; and investment of R 30 million-R 20 million for 15% 
grant; 
maximum qualifying investment: R 200 million; maximum qualifying grant: R 30 million 
Foreign Investment Grant (FIG):  
to assist foreign investors in 
investing in manufacturing by 
compensating them for the cost of 
relocating new machinery and 
equipment to South Africa from 
abroad  Majority foreign-owned company 
investing in South Africa for the first 
time, provided it is a registered 
incorporated legal entity in South 
Africa A cash grant, calculated as the lesser 
of:  
15% of the value of new machinery 
and equipment; 
or the actual relocation cost of new 
machinery and equipment; to a 
maximum of R10 million 
  
Industrial Development Zones 
Programme (IDZs):  to provide 
industrial infrastructure linked to international sea- or airports for fixed direct investment into value-added and export-oriented manufacturing industries 
 All industries (zones to be designated 
first) located next to an international port  VAT exemptions under special 
conditions for supplies procured in SA. 
Duty suspensions on imports of 
certain production-related supplies, including assets used in export-focused production. 
Dedicated SARS officials to provide 
customs and VAT support. 
World-class industrial infrastructure 
linked to an international port of entry. 
Isivande Women's Fund: to 
provide more affordable, usable and 
responsive finance to enterprises and 
thus accelerate the economic 
empowerment of women  Formally registered enterprises that 
are 50% + 1 share owned and/or 
managed by women. 
The fund supports start-up 
enterprises and expansions. User-friendly, customised loans 
within a range of R 30,000 to 
R 2 million. 
Sector Specific Assistance 
Scheme (SSAS) : to develop an 
industry sector and new export markets; broaden the export base; and propose solutions to factors inhibiting export growth, stimulating the participation of SMEs, promote 
black economic empowerment and 
women empowerment in the export sector Non-profit business sector 
organisations, such as Export Councils, Joint Action Groups and industry associations. 
Qualifying sectors are as follows:  aerospace, rail and marine; agro-
processing; automotive; business 
process outsourcing services; capital 
equipment and allied services; chemical and allied industries; creative industries; electro-technical; film production; metals and allied industries; pre-qualified ICT services; pre-qualified tourism services; textiles and clothing. 
 Generic Funding  – R 50,000 grant 
for establishing export council. 
Grant for marketing, advertising and 
publicity costs on a 2:1 basis, to a maximum of R 1 million. 
Project Funding  – 80:20 cost-
sharing grant for projects to develop 
particular sectors, find new export 
markets and promote black SMMEs, women, youth and people with disabilities. 
Project Funding for Emerging 
Exporters  – Travel & 
accommodation, exhibition costs, transport of samples and marketing materials, to a maximum of R 1.5 million. WT/TPR/S/324 • South Africa 
 
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  Scheme: objective Criteria  Type of incentive 
Small business support 
Regional equity funds: to support 
SMEs  SMEs, in particular those sponsored 
by historically disadvantaged entrepreneurs Investment between R 250,000 and 
R 2.5 million in enterprises that have high potential growth and returns 
SEDA Technology Programme : to 
develop and support innovative 
technology-based platforms that 
result in the creation and 
development of sustainable, globally 
competitive SMMEs  Consortiums within a given sector 
including academia, private sector, 
provincial or local government, 
science councils, NGOs, financial 
institutions that establish and 
support SMMEs 50% grant for the cost of approved 
tools, machinery and equipment to a 
maximum of R 800,000;  
and 80% grant for approved training 
and business development services 
to a maximum of R 200,000. 
   
Export Marketing and Investment 
Assistance Scheme   
Individual exhibitions and in-store 
promotions: assistance granted to 
exhibit products at recognized 
exhibitions where the DTI does not provide for a national pavilion Individual exporters Cost sharing reimbursable grant 
Individual inward bound mission: 
organized by individual entrepreneurs 
where prospective buyers or 
investors seek to conclude export 
orders or attract FDI South African entities that organize 
export oriented activities Cost sharing reimbursable grant  
Inward buying trade missions: the 
DTI provides assistance to organizers of inward buying trade missions, which seek to enable the conclusion 
of export orders between South 
African exporters and prospective foreign buyers. Missions are organised by export councils, chambers of commerce, PIPAs or the DTI Organizers of "inward buying" trade 
missions for prospective foreign buyers to contact South African exporters and companies who fall 
under the services sectors 
the group mission must be organized by a qualifying organization, export council or the DTI Cost sharing reimbursable grant  
National pavilions: assistance 
provided to introduce South African 
products into foreign markets by 
participating in foreign exhibitions South African manufacturers of 
products including SMMEs, 
historically disadvantaged individuals 
(HDIs); 
South African trading house 
(representing at least three SMMEs 
or HDI entities, Commission agents 
(representing at least three SMMEs 
or HDI entities; 
South African export councils, 
industry associations and joint action 
groups (representing at least five 
South African entities) Cost sharing reimbursable grant  
Outward selling trade missions: the 
DTI provides assistance to South African exporters who seek to conclude export orders with foreign buyers. Missions are organized by 
export councils, chambers of 
commerce, provincial investment promotion agencies (PIPAs) or the DTI South African exporters who wish to 
make contact with foreign buyers or investors;  the group mission must be organized by a qualifying organization, export 
council or the DTI Cost sharing reimbursable grant  
Primary export market research: 
assistance provided for costs incurred 
in finding and entering new exporting 
markets Partially compensate exporters Cost sharing reimbursable grant WT/TPR/S/324 • South Africa 
 
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  Scheme: objective Criteria  Type of incentive 
Innovation/technology, and competitiveness  
Clothing and Textiles 
Competitiveness Programme 
(CTCP): to grow and develop the 
clothing, textiles, footwear, leather 
and leather goods manufacturing 
sectors. It is divided into the 
Improvement Programme (CTCIP) 
and the Production Incentive (PI). Manufacturers in the South African 
clothing, textiles, footwear, leather 
and leather goods sectors. The CTCIP makes 65% grants to 
individual companies and 75% grants 
to company clusters. 
The PI makes grants pegged at 7.5% 
of individual company manufacturing 
value addition. 
Grants may be used for interventions 
that improve competitiveness, 
including upgrades and expansion of 
capital equipment, increasing 
productivity, enhancing employee 
skills, improving products and 
processes, reducing costs and 
subsidising interest payments on 
debt. 
Film Production Incentive: to 
attract foreign-based film productions to shoot films and TV productions in South Africa and assist local film producers in the production of local content.  Foreign-owned production companies 
with Qualifying South African Production Expenditure (QSAPE) of R 12 million+. At least 50% of principal photography must be in South Africa, for a minimum of 4 weeks South African productions and co-productions with QSAPE of R 2.5 million+. Foreign Incentive - a grant of 15% of 
QSAPE. Local Incentive - a grant of 35% on the first R 6 million of QSAPE; thereafter 25% of QSAPE. 
Research and Development: promote 
research and innovation .. Tax deduction for operating costs 
related to R&D of 25% of the cost of 
capital expenditure approved by the 
Council for Scientific and Industrial 
Research 
Manufacturing Competitiveness Enhancement Programme (MCEP): to raise manufacturing 
companies competitiveness and retain jobs There are two components to the 
MCEP: the production incentive (PI); and the industrial financing loan facilities.  Applicants may apply for one or a combination of these components at either company- or cluster-level, as well as engineering services and 
other businesses that support the 
manufacturing industry. .... 
Technology and Human 
Resources for Industry 
Programme (THRIP) : enhance the 
competitiveness of industry through 
developing skills and technology, and 
encouraging long-term strategic 
partnerships between industry, 
research and educational institutions, 
and the Government All companies undertaking science, 
engineering and technology (SET) 
research, in collaboration with 
educational institutions, and with the 
aim of addressing the participating 
firms' technology needs. Industry and Government contribute 
to finance the research efforts 
providing that projects involve 
training of students; 
R 1 for every R 2 from industry, to a 
maximum of R 8 million per annum, 
across any number of projects. 
Technology Venture Capital Fund : 
to increase the number of 
economically-productive companies in SA, and thus contribute to economic growth and international competitiveness through innovation and technological advancement. South African SMME companies. Financial assistance to qualifying 
companies that wish to 
commercialize innovative products. 
Sector specific  
Aquaculture   
Aquaculture Development and 
Enhancement Programme 
(ADEP):  to stimulate investment in 
the aquaculture sector Primary, secondary and ancillary 
aquaculture operations under the 
following Standard Industrial 
Classification (SIC) Codes: 
SIC 132: Fish hatcheries and fish 
farms; and SIC 301 and 3012: 
Production, processing and 
preserving of aquaculture fish A cost-sharing grant of up to a 
maximum of R 40 million for 
investment in:  
machinery and equipment (owned or 
capitalised financial lease); bulk 
infrastructure; owned land and/or 
buildings;  
leasehold improvements; 
competitiveness improvement 
activities and commercial vehicles 
and work boats (owned or capitalised 
financial lease) WT/TPR/S/324 • South Africa 
 
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  Scheme: objective Criteria  Type of incentive 
Automotive industry    
Automotive Investment Scheme 
(AIS): to support the growth and 
development of the automotive 
sector Light motor vehicle or component 
manufacturers that are investing in 
their productive capacity. 
Contributions to the tooling industry 
and to own R&D activity, enhance the 
benefit. The AIS provides for a grant of 
twenty to thirty percent (20-30%) of 
the value of qualifying investment in 
productive assets, as approved by 
the DTI. 
People-Carrier Automotive 
Investment Scheme (P-AIS):  to 
stimulate growth in the people-carrier vehicles industry through investment in new and/or replacement models and components Semi knocked down and completely 
knocked down automotive manufacturers of people-carriers and manufacturers of components of people-carriers A cash grant of between 20 – 35% of 
qualifying investments 
Manufacturing    
Capital Projects Feasibility 
Programme (CPFP): contribute to 
the cost of feasibility studies into projects outside South Africa that are likely to increase local exports for South African capital goods and services. South African registered companies 
conducting feasibility studies on 
projects outside SA, whether new, expansions or rehabilitation of existing projects. A grant of between R 100,000 and 
R 5 million. 
Industrial Policy Projects – S12I 
of the income tax act: to support 
Greenfield investments (new 
industrial projects that utilise only 
new and unused manufacturing 
assets and Brownfield investments 
(expansions or upgrades). The 
incentive supports both capital 
investment and training. Greenfields:  
New manufacturing projects. 
Minimum investment R 200 million. 
Brownfields  
Manufacturing expansions & 
upgrades. 
Minimum investment R 30 million. Additional depreciation allowance of 
up to 55%. 
Additional training allowance. 
Maximum investment deduction 
R 900million for greenfields and 
R 550 million for brownfields. 
Maximum training deduction 
R 30million.  
Others    
Bavumile: to ensure the quality 
production of commercially-viable 
crafts and products that promote 
South African culture and heritage, 
for local and international retail and 
consumption. Women involved in creative 
industries and clothing and textiles, 
with skills in embroidery, weaving, 
netting, sewing and beading. Provision of specialist skills training 
and assistance in establishing own 
enterprises and co-operatives. 
Provision of additional training in 
packaging, customer service, 
bookkeeping and establishing own 
businesses and co-operatives. 
Source: Online information. Viewed at: 
https://www.thedti.gov.za/financial_assi stance/docs/thedti_Incentive_Guide2014_2015.pdf .