These countries are geographically positioned in the "heart of Europe" which makes them ideal trade partners, as they are the gateway to Eastern and Western Europe. In addition, the low labour cost versus high labour productivity, strategically positioned ports, advanced transport infrastructure as well as lower shipping costs, one can see that this is ideal area for trade and investment cooperation.
"Poland is a land of opportunity in terms of imports and exports. The prospects that become apparent when information is shared between countries are immeasurable," says Ryszard Nowosielski, Commercial Counselor of Trade & Investment promotion section at the Polish Embassy. "If South Africa utilizes the potential for trade and investment in these areas, trade between South Africa and Poland could easily reach the region of US$5 billion. When all Central European countries are considered, the untapped turnover potential with RSA may well exceed US$10 billion and bring US$2 billion advantage in a way of saving on import costs or getting more value from exports."
Particularly strong sectors within these four countries that have high potential for future international trade and investment with South Africa are: automotive spare parts and components, food, electronics, furniture, cosmetics, ITC, renewable energy, biotech and medical devices, to name just a few. Generally, the prices are 10 - 20% lower and the quality matches that of European obligatory standards. One would also save on transportation costs in relation to ports of Western Europe.
These countries provide a level of economic security. For example, Poland has been experiencing fast GDP growth as a result of internal and external stability and a large inflow of foreign direct investment and funding from the European Union. In 2008, Poland recorded a GDP growth of 5% despite the global crisis, an indication of its growing economic influence. This paired with the fact that these countries are members of NATO suggests that this would be a relatively safe place to grow a business with a number of incentives from the Polish Government for high scale production that is, in a large degree, negotiable.
"There have been a number of success stories regarding South African Companies operating in Central Europe. SAB Miller, Mondi and Naspers are the most prominent examples of what our countries can help South Africa achieve on a global scale," concludes Nowosielski.
