by Ann Druce

Created on: December 24, 2008   Last Updated: June 13, 2009

South African banks weathered the recent international banking storm with equanimity, but the South African Rand has nevertheless declined in value against the major international currencies since September 2008. Economists have attributed this to investors, suddenly risk averse, fearing the stability of so-called emerging markets. Ironic, really, since no South African bank needed government intervention. Government bail-outs of American banks and the outright government purchase of European banks were dramatic international news rather than an immediate and personal economic or political reality.

Few of us relish the declining value of the Rand against the US Dollar, but it is good news for South African exporters. Suddenly our exports are more cost competitive, more appealing to foreign markets. Competing in the international arena has never made more sense.

And while gold, platinum and diamonds may be the first thing that comes to mind, South Africa has so much more to offer. For instance, the major international car brands, BMW, Mercedes Benz, Volkswagen and Toyota are all manufactured in South Africa for export to first-world countries.

But while international trade in precious metals and motor cars might be the preserve of multi-million dollar contracts, the principle of outsourcing to a country with the resources, infrastructure and the will to deliver can be applied more broadly.

The South African advertising industry enjoys a healthy reputation internationally. Executives in local offices of multi-national agencies have frequently been appointed to senior posts in North America, Europe and Australia, South African creatives are invited to serve on the judging panels for major advertising awards, and our work regularly wins international awards.

And while there can be no argument that the best way to develop a client/agency relationship is face-to-face, it is possible to work around a long-distance relationship! Technology is on our side. International phone calls are clear and are no longer cost-prohibitive, emails circumvent many of the challenges of international time differences, and while presenting a campaign personally is always my first choice, the quality of PDF documents mean creative concepts are easily transported across the world.

It is both possible and realistic to use international exchange rates to leverage your advertising dollar. While the import of goods from low-cost producing countries is a well-established business practice, leveraging a strong currency is not limited to manufactured goods. Major international companies outsource IT to India and call centres to improbable locations around the world, and professional services such as architectural design are regularly rendered on an international basis. Advertising and graphic design is just another professional service that can be supplied on an international basis, using the wealth of talent and expertise that exists in countries with relative weaker currencies to leverage your advertising dollar.

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