SOUTH AFRICAN REVENUE SERVICE
PRESS STATEMENT

28 DECEMBER 2006

SOUTH AFRICAN TRADE STATISTICS FOR NOVEMBER 2006

TRADE DEFICIT REDUCES IN NOVEMBER 2006 TO R10.5 BILLION, LARGELY DUE TO MONTH-ON-MONTH DECREASE OF R2.6 BILLION IN MINERAL PRODUCT IMPORTS.

The South African Revenue Service (SARS) today published trade statistics for the month of November which recorded exports of R41.4 billion and imports of R51.9 billion. This resulted in a deficit of R10.5 billion. The decrease of the deficit is mainly as a result of a month-on-month increase in exports and a decrease in imports of mineral products. Imports decreased by R826 million (-1.57%) to R51.9 billion whilst exports increased by R1.6 billion (4%) to R41.4 billion.

Trade by Category

• The October to November change (down by 1.6%) in imports of goods, reflected decreases in mineral products, particularly crude oil (down by R2.6 billion) and original vehicle equipment components (decrease of R665 million). However, imports of vehicles increased by R563 million; precious and semi-precious stones and metals, specifically diamonds, increased by R444 million and machinery, mechanical appliances and electrical equipment, especially turbo jet machines increased by R366 million.
• The October to November change in exports of goods (up by 4%), reflected increases in base metals (R1.8 billion); vehicles (R1.5 billion); and machinery, mechanical appliances and electrical equipment (R585 million). Partly offsetting the effects were decreases which occurred in precious and semi-precious stones and metals - particularly gold (R1.4 billion); and mineral products - particularly coal and crude oil (R809 million)

Trade by World Zone

• The trade deficit with Asia decreased from R14 billion in October to R9.4 billion in November. Exports increased R760 million to R12 billion, while imports decreased R3.4 billion (primarily due to reduced imports of crude oil from the Middle East) to R21.4 billion.
• The trade deficit with Europe decreased to R2.7 billion in November (trade deficit of R2.8 billion in October). Exports increased by R293 million (primarily base metals and vehicles) to R14.7 billion, while imports increased by R250 million (primarily vehicles; precious and semi-precious stones and metals and machinery and mechanical appliance) to R17.5 billion.
• Month-on-month the trade deficit with America remains unchanged at R1.1 billion. Exports increased by R732 million to R5.69 billion, while imports increased by R772 million to R6.8 billion.
• The trade surplus with Africa has reduced from R1.4 billion to R84 million (94% decline). Exports increased by R202 million to R5.2 billion, while imports increased by R1.5 billion (primarily crude oil) to R5.1 billion

Trade for the year

Shut downs of refineries and stock piling of inventories have resulted in large scale imports of mineral products, particularly crude and petroleum oil. Month-on-month imports of crude oil have decreased by R2.6 billion from R13.7 billion in October to R11.1 billion in November. This importation of mineral products has had a significant impact on the trade deficit.

So far, imports have been driven by a surge in the trade of the following top five (5) sections (% contribution): machinery and mechanical appliances (26%); mineral products (19%); vehicles, aircraft and vessels (11.4%); chemical products (8%) and original vehicle equipment components (8%). Imports of machinery and mechanical appliances have increased, from a growth of about 15% in the previous year versus a year-on-year growth of 32% in the current year. Imports of mineral products have grown by almost 70% year-on-year, compared to a growth of about 20% in the previous year. Another contributor to the growth in imports has been vehicles and aircraft, which have grown by 15% in the current and previous year.

Similarly, in terms of exports, there has been an increase in the trade of the following top five (5) sections (% contribution): precious and semi-precious stones and metals (28%); base metals (18%); mineral products (14.3%); machinery and mechanical appliances (10%); and vehicles, aircraft and vessels (9.6%). Exports of precious and semi-precious stones and metals have grown by almost 33% year on year, compared to a growth of about 1% in the previous year. The other contributor to the growth in exports has been base metals, which have grown by 20% year-on-year, compared to a growth of 10% in the previous year. Exports of mineral products have slightly slowed down, from a growth of about 37% in the previous year versus a year on year growth of 21% in the current year.

ENDS

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA