Wednesday Dec 25, 2024
Wednesday Dec 25, 2024
Thursday, 26 February 2015 00:00 - - {{hitsCtrl.values.hits}}
The Ceylon Chamber of Commerce in partnership with the South African High Commission yesterday convened a B2B meeting calling on Sri Lankan investors to concentrate more on value addition for an optimal pricing strategy.
Sri Lanka is the market leader for raw materials such as coconut, abaca, ramie and other fibre but countries such as China, Brazil and Kenya receive a high price for this product category. Therefore exporters while catering to the mass market should focus on niche markets existing in South Africa.
Furthermore, as exporters of black tea which gives high export revenue as an individual product, exporters have not been able to be in line with competition with value addition, which disables the pricing strategy of exports.
South Africa Assistant Director Mdu Mulunga stressed: “Exports from Sri Lanka to South Africa do not paint a good picture, which I think is because the country only concentrates on a few items; partnership forums will allow us to discuss how to broaden the scope.”
The fifth partnership forum ended in a positive note to both countries on Tuesday, paving the way for investments mainly in the private sector and tourism sector.
Currently Sri Lanka caters for about 0.3% in the South African market. Market share in the South African market has increased since 2008, prevailed during the recession of 2009 and is currently showing reasonable growth. According to latest statistics of trade between the two countries, Sri Lanka shows a favourable trade surplus with exports amounting to $ 33 million and imports $ 21 million respectively. 
Development of International Relations and Cooperation South Africa Director Tielman Furter stated South Africa was open for business just as Sri Lanka and was home to a huge population, so there were ample investment opportunities. He added: “Do not only concentrate only on South Africa, reach out to the whole African region.”
The importance of a direct business and communication portal in order to meet mutual business interests of both parties to reduce the cost of business was highlighted by Tielman. He added: “Currently Dubai and Singapore act as intermediates representing business between Sri Lanka and South Africa; people-to-people contacts through business exchanges will enhance our existing economic and trade relations. Exchange of information is indeed a clear sign of building already strong relations.”
South African officials went on to say a more prominent Sri Lanka presence is needed in South Africa.
Tielman highlighted the South African trade exhibition, stating: “We expect more representatives from Sri Lanka this year; as the partnership grows, both countries can benefit from each other. For this to materialise, the private sector in Sri Lanka has to play a vital role.”
They also added there is no level playing field for South African infrastructure giants to enter Sri Lanka and if relevant amendments were made South Africa would most likely enter the infrastructure field.
