Western Cape seeks 1 000 new exporters, steps into EU markets as US exports fade
The Western Cape government aims to add 1 000 new exporters to its current portfolio of 8 000 registered exporters by 2035.
The Western Cape Export Strategy 2035 sets a number of targets, in fact. It aims to grow exports to R408-billion a year (from R136-billion in 2020), and to add more than 200 000 new jobs from increased exports nine years from now.
It also hopes to unlock ten new export product opportunities by 2035.
Western Cape Premier Alan Winde in October outlined the province’s export strategy as he addressed the Second Biannual Export Industry Dialogue in Cape Town.
“Every shipment that leaves our province represents a livelihood for a family back home. That is why we are fiercely committed to economic diplomacy, to protect jobs and build a runway for 200 000 more.
“While we do not always have a mandate to delete obstacles to growth, we as a government will do everything in our power to clear blockages, and to minimise the impact of global disruptions,” said Winde.
The export dialogue event provides a platform for multiple stakeholders to engage on growing the province’s exports. It also aims to strengthen coordination across the export ecosystem.
A key focus area at this month’s iteration of the dialogue was accelerating the diversification of the province’s export markets across Africa, Europe, the UK, Asia, and the Middle East.
In a survey conducted before the engagement, 89% of export bodies canvassed cited high entry-to-market costs and tariffs as concerns, while more than 70% expressed worries about port efficiency.
The issue of the US’s punitive tariffs on South Africa was a prominent point of conversation.
The Western Cape last year accounted for more than 50% of South Africa’s total agriculture and agriprocessing exports to the US.
The province also held a significant national share in exports of products such as seafood, yachts and vessels, jewellery, beauty products and vehicle engine components to the US.
Between August last year and July this year, however, South African exports to the US declined by 16.2%.
What has become clear is that European countries have largely filled the gap left by the decline of the US market.
While this is a positive development for the Western Cape economy, these fledgling trade relationships may be jeopardised by the need to comply with growing EU demands around decarbonised goods.
Winde noted, however, that this was an area in which the Western Cape excelled.
“We are ahead of our own targets for renewable-energy generation.
We can now realistically say that we might see some 50% of the Western Cape’s energy usage come from renewables within the next year.
“Projects like the newly inaugurated Riversdale Solar Plant and Helderhoop Solar and Storage Plant will not only result in cheaper, more environmentally friendly and reliable energy for our residents; they will also help our exporters to produce goods which comply with the growing global demand for carbon-neutral manufacturing, enhancing their competitiveness as a result.
“Our economy’s strength is built on international partnerships,” added Winde. “Where we encounter trade challenges, we remain committed to constructive economic diplomacy.”
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