INFLUX OF CHEAP IMPORTS AND COUNTERFEIT GOODS

The Durban Chamber of Commerce and Industry NPC is deeply concerned by the recent surge in cheapimports and counterfeit goods entering South Africa's domestic market, which is widening the trade imbalance and placing immense pressure on our domestic industries. As organised business, we believe this is far from a minor issue—it represents a systemic threat to the economic resilience of both the country and the province. The current situation is escalating into an economic crisis, adversely affecting critical sectors.

These products not only undermine intellectual property rights but also compromise safety standards and damage reputational integrity. As organised business, we have observed the following industries struggling under this pressure, with significant impacts on operational viability and competitiveness:

1. Although KwaZulu-Natal’s paper and pulp industry plays a vital role in South Africa’s economy through industrial output, exports, rural development, and job creation, the sector is now facing a serious threat from imported paper dumping, particularly from Asia, where products are sold below fair-market value, undermining local manufacturers and the government’s localisation drive.

2. In the solar manufacturing industry, we have seen that over 96% of solar modules supplied into national renewable energy projects continue to be imported. This persists even as South Africa’s only operational solar PV manufacturer, together with its local supplier network, faces severe financial strain and operational uncertainty.

3. The automotive industry is no exception. Large-scale automotive manufacturers that employ thousands of workers and contribute significantly to the country’s GDP and employment rates face severe constraints due to a high influx of foreign vehicles entering the South African market.

4. The textile and clothing industry is in urgent need of support. Major retailers face intense international competition, especially from Asia. This is threatening the entire value chain and the sustainability of big and small businesses.

5.Last but not least, and perhaps most dangerously, the food and beverage sector is facing a surge in illicit and counterfeit goods. These products are entering our city at alarming rates, bypassing safety checks, and the effects are tangible. This puts strains on SMMEs as there is a trust deficit, making consumers reluctant to purchase from local establishments.

The impact is significant; domestic manufacturers and businesses are increasingly unable to compete with such low-priced imports. This has the potential to lead to job losses, reduced government revenue, and the collapse of key industries, limiting the country’s potential for sustainable economic growth. Our local businesses face financial strain and operational uncertainty. The impact is even more severe for small, medium, and micro enterprises (SMMEs), many of which are struggling to survive or are operating at minimal capacity as they face intense competition from cheaper imports.

While the Durban Chamber of Commerce and Industry NPC supports international trade and promotes international relations, co-developing solutions with government and our international partners is critical to protecting our domestic market. Furthermore, there needs to be enforcement on illicit foreign goods. Protecting local businesses must be a priority on South Africa's economic agenda.