NEWS RELEASE 27 June 2002
WESTERN CAPE EXPORTERS HIGHLIGHT TRADE PROMOTION NEEDS AND CONSTRAINTS
Exports from the Western Cape and Cape Town are big business, totalling over R19 billion in 2001, making an increase of R3 billion since 2000.
As part of an effort to further boost the Western Cape and Cape Town’s foreign trade promotion growth, a large-scale trade promotion user needs survey of Western Cape exporters and non-exporters has identified the need for a coordinated approach to meeting the various trade support needs of exporters.
The research conducted with about 120 companies, and led by Dr Steve Burgess of the University of Cape Town’s Graduate School of Business, indicates that exporters priority needs are access to various types of finance to support exports, and marketing information specific to their industry.
The survey covered 48 different trade promotion services and results show low levels of awareness for a number of these services. Plans are underway to produce a Western Cape directory of trade promotion service providers to address this awareness problem.
The results of the survey were discussed with exporters at a trade promotion workshop organised as part of the Cape Joint Marketing Initiative (JMI), a partnership between local and provincial government to brand and market the Western Cape internationally as an attractive product in the marketplace.
“Clearly, exporters need a helping hand with relevant information that they have been unable to access until now,” said Rose Blatch, Executive Director for ITRISA (International Trade Institute of Southern Africa).
We want to give exporters all the help they need to get our world-class products onto world markets.
Despite the crucial importance of growing our exports, the research identified wide-spread constraints facing exporters as they try to grow their exports, as well as non-exporters as they attempt to become exporters, which are limiting our export growth.
The main constraint identified were problems with sea, air, road, and rail transport. These problems were followed closely by customs clearance, freight forwarding, marine cargo insurance, dispute resolution, and trade documentation completion.
As an example of the problems faced by Cape exporters, Stuart Symington, CEO of the Fresh Produce Exporters’ Forum, said the theft of copper wire used for telephone lines had prevented access to the Internet in rural areas, while inefficiencies at Cape Town Port made it difficult to maximise fruit exports which impacted negatively on the economy.
Statistical reserch undertaken by the city of Cape Town has shown that the Western Cape and Cape Town has strong competitive advantages in a number of export-oriented economic sectors, including animal products, vegetable and fruit products, prepared food, footwear and textiles, information and communications technology, mechanical equipment, plastics, and boat-building.
Interestingly, although Cape Town is at the hub of the biggest emerging markets - Africa, Asia and the Far East - most exporters still see Europe and the USA as their main markets for the future. Exporters are however building on their knowledge of emerging markets and increasingly seizing opportunities in other emerging markets where competition is not as fierce.
Strong opinions about the need for a Western Cape trade promotion public-private partnership body to improve service delivery to exporters were expressed by leaders in a number of Cape industries, including food, fruit growers, IT and textiles.
Ways to best address this need are in the process of being discussed with relevant trade promotion organisations as part of the Joint Marketing Initiative process initiated by the City of Cape Town and Western Cape Government.
The full detailed results of the Trade User Needs survey will be made available on the Joint Marketing Initiatives web site at www.jmi.co.za
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