Laos, South Africa trade volume remains limited
Laos, South Africa trade volume remains limited
The value of Lao products exported to South Africa over the past four years continued to be low at just over US$653,000, while imports over the same period were valued at a little over US$7.68 million.
Products imported from South Africa to Laos included beverages, medical items, clothing, engine parts and electronic equipment.
Meanwhile Lao products exported to South Africa mainly consisted of rubber with a value of over US$85,000 as well as vehicles and parts worth about US$292,000.
According to data compiled by the Ministry of Industry and Commerce, Laos also exported rice products to South Africa during the years 2013 to 2015 worth about US$85,000, but this figure did not appear on the export list.
The two countries are both dependent on electricity and mining as well as other natural resources.
Laos and South Africa established diplomatic relations in 1994, but the volume of trade has remained small. Trade was valued at US$5 million in 2015. The large distance between the two countries is cited as the reason for the slow growth of trade as the two countries are very far apart.
Lao products on sale in South Africa are mostly textiles and handicrafts. South Africa exports wine, foodstuffs, bullion, heavy machinery and equipment, consulting and technical services, automotive components and parts, chemicals, high-tech fibres and plastics to Laos.
In 2015, a business matching session held in Vientiane by the Embassy of the Republic of South Africa to Laos based in Bangkok, Thailand, encouraged Lao businesses to explore investment opportunities in South Africa. In addition, it sought to boost the quantity of imports and exports between the two countries.
Sharing similarities in their economic structure, South Africa has a lot of expertise in rail networks and mining and hoped this would be a good opportunity for Laos to share it with them.
The Lao economy is heavily dependent on natural resources, while South Africa is a leader in agricultural and environmental management, and can offer technical research capability in cutting edge sustainable food production and environmental management.
