Forging a Partnership

Following the historic election of Nelson Mandela as President in April 1994, South Africa has become one of the most exciting new markets to emerge in the global trade and investment race.

The third “Made in USA” Expo will take place in Johannesburg in October 1995. With the lifting of US economic sanctions against South Africa carrier this year, it promises to eclipse the previous two exhibitions. The second annual “Made in USA” Expo, which was held at Johannesburg’s World Trade Centre in October 1994, showcased the products of 200 US companies to more than 30 000 South African business people. In 1993 exhibitors closed deals valued at more than $300 million and dozens of US corporations signed partnerships, joint ventures and distributorships with South African firms. Companies that have used the “Made in USA” Expo as a springboard into Africa, include Microsoft, Digital Equipment, Coca-Cola, AT&T, Chrysler, General Motors and a host of medium-sized companies. These are just some of the 50 US companies to establish permanent bases in South Africa since 1991. Many will be exhibiting at the 1995 “Made in USA” Expo for the third time in a row.

The exhibition has the imprimatur of the US Department of Commerce and support from a host of South African and US government and private sector organizations, including the National Foreign Trade Council, the US-South Africa Business Council, consultants Samuels International Associates of Washington, D.C., the National African Federated Chamber of Commerce (Nafcoc), the South African Chamber of Business and several other black business organizations. “Made in USA” is the largest showcase of its kind for US companies in Africa, says David Altman, the exhibition organizer. “It opens trade and investment doors, not only to South Africa, but the whole of Sub-Saharan Africa”.

In addition to some 200 US exhibitors, the 1994 “Made in USA” Expo featured exhibits from 15 African countries eager to tie up deals with US principals. US Commerce Secretary Ron Brown commended Altman for “courageously venturing forth last year to stage a pioneering exhibition of American products in South Africa.” Although small by US standards, South Africa is a giant in Africa. Its $113 billion economy is larger than the combined economies of the 10 southern African states to the north. It is the gateway to a trade bloc that imports $55 billion worth of goods annually. It has a modem infrastructure, a world-class transport system, state-of-the-art telecommunications and a First World banking and financial services industry. Anticipating the improved political climate, the US toppled Germany as South Africa’s leading supplier of imported goods last year. The Overseas Private Investment Corporation (OPIC) recently agreed to provide trade and investment incentives for US companies dealing with South Africa while the Export Import (EXIM) Bank has already financed over $200 million dollars-worth of US exports to South Africa. Altman says US companies are demonstrating intense interest in South Africa, which imports more than $22 billion worth of goods and services a year. “This is an important market for US companies to penetrate,” he says. “The US exports more to South Africa than they do to all of Eastern Europe combined; South Africa is the gateway to Africa,” The most direct route into South Africa, and indeed Africa, is through the “Made in USA” Expo.

South Africa, The Journal of Trade, Industry and Investment
Publisher: David Altman