The World Cup 2010, June 11 – July 11, in South Africa is expected to generate more than USD1.8 billion for the South African economy via increased consumption and higher spending during their hosting of the world's most prestigious soccer event. This spectacular tournament is projected to boost the host country's economic growth to 3.6 percent this year, according to the South African government.
KASIKORN RESEARCH CENTER (KResearch) holds the view that Thailand's exports to South Africa will therefore benefit from the country's brighter economic performance. Despite the fact that Thai exports to South Africa are presently small, representing less than 1 percent of our total exports to global markets, there is considerable potential ahead. Among the main beneficiaries of this large sporting event would likely be consumer goods, especially Thai food, health products and gems/jewelry, thanks to higher demand from tourists. Thailand should take this opportunity to promote our products with the visitors to this competition and the African continent with a population of more than 200 million.
Nonetheless, Thai exports may have to compete head-on with Chinese and Indian counterparts that are cheaper. In terms of quality, our major rivals in this marketplace will be Germany, the US and Japan, which are also key trading partners that have higher manufacturing potential. Emphasis should thus be placed on the most effective logistic routes to ensure reduced shipping costs.
Opportunities seem to abound in northern South Africa, having a population of over 35 million (70 percent of the total population) with high purchasing power. Shipments should be made via ports in Durban, KwaZulu-Natal state for further distribution to the interior of South Africa, e.g., North West, Free State, Gauteng, Mumalanga and Limpopo provinces. The city also serves as a gateway for shipments to other African countries such as Lesotho, Zimbabwe, Botswana and Swaziland, etc. In the southern region, Thai shipments should be made via ports in Cape Town, Western Cape in southernmost South Africa. Shipments could then be distributed to neighboring southern states including Northern Cape and Eastern Cape provinces, etc. where a population of around 13 million (representing 30 percent of the country's total population) resides.
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