Segmentation
 • Base chemicals
 • Intermediate chemicals
 • Chemical end-products
 • Speciality end-products

Vision
To develop a high growth, internationally competitive chemical sector.

Production Capacity
South Africa's chemical industry is of substantial economic significance to the country, contributing around 5% to GDP and approximately 22% of its manufacturing output. The industry employs approximately 175 000 people. Through isolation of the industry from international competition and high raw material prices as a result of import tariffs, locally processed goods have generally not been competitive in export markets. Furthermore, the industry's focus on import replacement has led to the location of chemical plants at inland locations close to the coal based synthetic fuels plants which provide feedstocks. This strategy was attractive at the time due to the additional benefit of being sited close to the heavily populated Gauteng area which is the largest domestic market. These plants are generally smaller than world-scale and their cost structures are not highly competitive in export markets, partly because of the high transport costs to coastal ports. They are nevertheless, well-placed for exports to neighbouring African countries.

Imports
Imports of the largest component of total chemicals (industrial chemicals) increased by 5,4% in the first semester of 1997, compared to the first semester of 1996. This represents 10,3% of total manufactured imports.

The top seven countries of origin of imported industrial chemicals for the first semester of 1997 were: (in order of descending volumes) 1) USA2) Germany
3) Australia4) UK 5) Netherlands6) Switzerland
7) France.

Exports
Exports of the largest component of total chemicals (industrial chemicals) increased by 23% in the first semester of 1997 compared to the first semester of 1996. This represents 19% of total manufactured exports.

The top seven export destinations for South African exports of industrials chemicals for the first semester of 1997 were: (in order of descending volumes) 1) USA
2) Spain3) Zimbabwe4) Netherlands
5) Singapore6) UK7) Mozambique.

Objectives

•	To shift the emphasis from an inward looking policy and create an export culture
•	To increase plant capacities geared for exports resulting in better economies of scale
•	To develop a positive global image of the quality of chemicals produced in South Africa
•	To increase the market share in existing markets and diversify exports to new foreign markets
•	To encourage foreign investment in the local chemical industry
•	To improve product innovation and maarketing skills
•	To encourage and train SMMEs to export.

Export Promotional Assistance
To assist the chemical sector in generating export growth the DTI directorates, as facilitators, will work with all stakeholders in the sector to:

•	Establish export consultative groups/export councils which would act as the driving force in stretching export growth.
•	Develop and refine an export strategic plan, and specify market development plans for target markets
•	Identify exporters to participate in trade and investment missions organised by DTI
•	Organise inward buying missions to coincide with relevant local exhibition
•	Encourage and assist exporters to participate in specialised exhibitions abroad
•	Bring tenders and notices to the attention of SA exporters and project companies
•	Monitor market trends and regulatory changes in export markets.