South Africa - International Franchise Association

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Chapter 3: Selling U.S. Products and Services
• Using an Agent or Distributor
• Establishing an Office
• Franchising
• Direct Marketing
• Joint Ventures/Licensing
• Selling to the Government
• Distribution and Sales Channels
• Selling Factors/Techniques
• Electronic Commerce
• Trade Promotion and Advertising
• Pricing
• Sales Service/Customer Support
• Protecting Your Intellectual Property
• Due Diligence
• Local Professional Services
• Web Resources
Using an Agent or Distributor Return to top
One of the first steps that an exporter may wish to take in locating an agent or distributor
in South Africa is to contact the U.S. Commercial Service in South Africa and register for
one of the services specifically designed to meet the needs of U.S. client companies.
South Africa offers foreign suppliers a wide variety of methods to distribute and sell their
products, including using an agent (also known as a Commission Sales Representative,
or CSR) or distributor. A link to details of these services is available at the end of this
report.
In South Africa, the terms "Agent" and "Distributor" have a very specific meaning:
“agents” work on a commission basis after obtaining orders from customers; distributors
buy, carry stock and sell products directly to customers.
Agents often distribute durable and non-durable consumer goods, as well as some
industrial raw materials. They may be particularly appropriate when products are highly
competitive and lack a large market. It is common to appoint a single agent capable of
providing national coverage either through one office or a network of branch offices. In
addition to their role as the local representatives of U.S. exporters, agents should be
able to handle the necessary customs clearances, port and rail charges, documentation,
warehousing, and financing arrangements.
Local agents representing foreign exporters, manufacturers, shippers, or other principals
who export goods to South Africa, are fully liable, under South African import control law,
for all regulations and controls which are imposed on the foreign exporters. Local
agents are required to register with the Director of Import and Export Control of the