South Africa- The Underestimated Export Destination for Indian Agriculture
India has amicable relations with nations such as South Africa. However, such relations have not resulted in a strong export connection. According to the United Nations COMTRADE database on international trade, India’s overall exports to South Africa was USD 3.24 Billion during 2016.
source: tradingeconomics.com
South Africa serves as the perfect entry point to doing business in the Sub-Saharan African region. With a population of almost 56 million people, 64.3 per cent of which is urban, a growing middle class, and well-developed infrastructure, the country is one of the most advanced, diverse, and attractive business destinations on the African continent. Despite the country’s well-developed processed food sector and its competitive horticultural sector, it continues to offer various opportunities for imports.
The story with African economic giant is very much similar to India, especially when it comes to the behaviour of its consumers ‘middle-class South Africans are brand conscious, thus new products entering the South African market, particularly unknown or lesser known brands, require extensive market research. It is a similar challenge start-ups face in India’.
What may sound interesting to Indian export enthusiasts is that there is greater demand for a house or private labeled-brands as consumers see these products as providing good value for money. A possible wow factor for Indian’s looking for homely export opportunities.
Similarity does not end here. The South African consumers are also looking for convenience. Supermarkets and convenience stores are augmenting their stock of snack foods, ready-to-eat meals, and pre-cooked “heat at home” meals.
Consumers buying more “natural” products; foods with less or no “perceived bad” ingredients (e.g. sugar, salt, Trans fat, etc.) are becoming mainstream. As India is one of the largest horticulture production giants of the world, the demand for fresh fruits and vegetables, nuts, grains and legumes that are increasingly getting part of the daily diet for middle to high-income consumers, can earn India a lot.
Consumers from South African are also increasingly interested in food from other countries and cultures besides none wants to lose a familiar taste, a win-win situation for India.
The agriculture and allied sectors overall shares are-
