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Johannesburg - South Africa's trade surplus shrank to R5.22bn ($359m) in July versus a revised surplus of R12.47bn in June, according to data from the South African Revenue Service.
Exports decreased 9% to R95.7bn on a month-on-month basis, while imports fell 2.4% to R90.5bn.
Analysts polled by Reuters had expected a trade surplus of R8.1bn for July.
"The cumulative trade balance surplus (01 January to 31 July 2016) of R17.40bn is an improvement on the deficit for the comparable period in 2015 of R24.67bn," said Sars.
Responding the data, head of commercial banking at Standard Bank Karl Götte said doing business in the country has been challenging, especially since the end of 2015.
"The agricultural industry suffered a drought which resulted in exports declining in 2015 for the first time in 10 years. It is said that the bulk of the decline was felt in exports to Asia which fell by 15% due to the fall in maize exports. The rand is currently under pressure following months of strong performance.”
However, Götte said the country has had an injection in confidence following the deal signed between the Beijing Automobile International Corporation (BAIC) and the Coega Development Corporation for a new automotive manufacturing plant valued at R11bn. This is the largest automotive investment seen in Africa over the last 40 years.
Minister of Trade and Industry, Rob Davies, said that this investment demonstrates confidence in South Africa as an investment destination and also positions the Eastern Cape as an automotive hub.
“The South African Reserve Bank has projected stagnant economic growth for the current year which could be seen to add further pressure on businesses," said Götte.
"Businesses need to consider strategies for growing in a low growth environment as this has the potential to present opportunities which might not be considered by one’s competitors. One should not limit oneself to investors that are only locally based, but also expand the horizons to collaborate internationally or regionally."
Götte said this could be through understanding best practice, collaborating through joint ventures and or being open to strategic partnerships.
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