South Africans Expected to Benefit From Brexit

Justin Chadwick, CEO of the Citrus Growers Association, said the impact of Brexit will become clearer over the next two years as the United Kingdom and European Union negotiate their divorce. Chadwick, nevertheless, said that South African fruit producers stand to benefit from a post-Brexit regime. The United Kingdom is South Africa’s second largest market for fresh fruit exports. Approximately 50% of South Africa’s exported soft citrus is absorbed by the region, according to Chadwick’s estimates.

Competition Increases in South African Retail Environment

The grocery retail environment in South Africa is extremely competitive. Price wars, prime locations, experienced staff and existing store improvements are some tactics. Mixed retailers recently presented additional competition to grocery retailers by increasing their product lines to different types of fresh food. South Africa’s leading grocery retailers are expected to open more convenience stores and digital presence in an effort to benefit from the growing demand for convenience.

B-BBEE Brings Hope to Small-Scale Farmers

The South African government is in the process of finalising the release of the realigned AgriBEE Sector Codes to rate agricultural businesses’ level of compliance to the Broad-Based Black Economic Empowerment (B-BBEE) Amendment Act, which aims to facilitate the meaningful inclusion and participation of previously disadvantaged citizens in the country’s economy.

South Africa's Extreme Drought

Production estimates are down, and the lack of rainfall is forcing fruit producers to spend more. In the case of citrus, where South Africa is a significant producer and exporter, crop estimates for the 2015-2016 season were confirmed and released by the Citrus Growers’ Association. Production for 2016 is estimated to decline by 7.5 million cartons compared with the previous season.

Connecting to the Digital Consumer in South Africa

According to Euromonitor International, there were 4.9 million internet subscribers in 2015 in South Africa. E-commerce in South Africa is in its infancy by global standards, but it is growing significantly. To capture these consumers, retailers are launching different digital strategies to make their shopping experience faster, easier and more efficient. An opportunity exists among niche consumer segments.