Attracting foreign investment for the frozen fruit and vegetable sector
During the final weeks in January Wesgro’s Agribusiness Unit led an outward investment mission to Belgium. With the aim of attracting foreign direct investment into the Western Cape’s Agricultural sector, Wesgro conducted several business meetings with interested Belgian companies. The mission focussed on the frozen fruit and vegetable market, a sector in need of investment and development within the Western Cape.
According to global statistics a third of the frozen fruit and vegetable market is exported from Flanders, located in the northern part of Belgium. Wesgro’s newly adopted proactive approach has resulted in the early identification of this successful market, enabling a more targeted outward investment mission.
While South Africa possesses the resources to cultivate fresh produce, its frozen fruit and vegetable sector is relatively under-developed especially when compared to that of the Europe Union. Consequently South Africa and the Western Cape are strategically positioned to benefit from the injection of another competitor in this sector.
The targeted investment mission to Belgium, a Wesgro first, has already ‘borne fruit’ as the Embassy of Belgium and Luxembourg, in collaboration with Wesgro, are working together to form partnerships with local Western Cape companies and their EU counterparts.
Is your company based in the Western Cape and a supplier of frozen fruit and vegetables? If so, please contact Lentswe Bhengu on 021 487 8648 or email Lentswe@wesgro.co.za to take advantage of this investment opportunity.
WealthTree
blooms in Wesgro
Wesgro welcomed WealthTree Director, Mr S Venkat to its offices on 11 February 2010 to share his trade insights on entering the Indian market. Venkat, an experienced Chartered Accountant and Risk Manager, has focused his skills on assisting companies who wish to enter and /or form partnerships with India. As part of their South African road show (8th – 13th February 2010), WealthTree hosted a seminar for Wesgro members and local companies interested in accessing this emerging market.
The Indian economy has emerged as the second highest global recipient of Foreign Direct Investments. According to Venkat, India along with China, are the only major economies to boast a growth rate of 8% per annum. As one of the biggest consumption destinations India offers an unmatched opportunity for foreign companies interested in expanding their enterprises. Markets in North America and Western Europe are struggling, while India with its large middle class, young population and increasing global aspirations, provides an ideal avenue for growth for South African companies’ says Venkat.
Venkat briefed guests on the basic criteria potential exporting companies needed to fulfill before attempting to enter the Indian market. According to the export advisor, mid-sized companies were more suitable to successfully penetrate the Indian market if they had management bandwidth to provide support, a budget to sustain the long-term process and experience in interacting with other foreign markets.
Several South African companies have already successfully entered the Indian market by taking advantage of the growing economy and veiled opportunities. “This is an excellent time for companies based in the Cape Town region to consider expanding their businesses in India said Venkat. Wealthtree has been actively involved in assisting more than 75 Companies, 3 of which are located in South Africa, and a variety of countries and industries with their Indian entry plans.
Venkat worked with PriceWaterhouseCoopers, Aon and Hines before founding WealthTree in 2006. He specializes in assisting foreign companies with their ‘start up’ requirements in India, including India market entry strategy, feasibility studies and identifying local partners amongst others.
For more information about Venkat and WealthTree visit www.wealthtree.in
Zimbabwe trade reality
Zimbabwe is emerging from its lost decade and is ripe for growth after years of severe economic decline, says Steven Ombati, a senior analyst at the leading business consultancy, Frontier Advisory. This statement was delivered during Ombati’s speech at Wesgro’s Export Development Programme (EDP) 3 seminar held on 11 February 2010.
Leading business analysts and local export authorities attended the Wesgro initiative which gathered over 180 local companies at Hotel Le Vendome in Sea Point to address the realities of the economic situation in Zimbabwe.
The seminar tackled a number of pressing issues and concerns within Zimbabwe.
Topics of discussion included the Macro-Economic Overview of the Situation in Zimbabwe (Frontier Advisory), Zimbabwe Market and Logistics (CDT), Financial Risks (Ernst & Young) and the Potential Trade and Sector Opportunities for Exporters in Zimbabwe (the dti).
According to Ombati, Zimbabwe’s economy last year grew for the first time in about 10 years and the country was expected to show further growth in coming years. He said despite challenges around governance, deteriorating infrastructure and funding, Zimbabwe could not be ignored in southern Africa due to its size, geographic location and wide array of natural resources.
Ombati, whose organization helps companies get to grips with emerging market economies, said it was also in South Africa’s best interest that Zimbabwe succeeded. He noted that the Zimbabwean government had put a number of steps in place to stabilize and revive the economy, including lowering corporate taxes and introducing a multiple currency system in order to curb inflation.
The Zimbabwean government in its Short-Term Economic Recovery Plan (STERP) had estimated growth of 7% for 2010 and 6.3% for next year and the year after, far above estimates of about 2 % for South Africa for this year. Ombati said that the funding for this growth remained a challenge, the government hopes to raise U.S. $25 billion by 2012, about five times the current size of the economy, but overall he was optimistic about Zimbabwe’s prospects.
For more information about these and other Wesgro initiatives, contact:
Judith Coetzee
Tel: +27 21 487 8608
Email: judith@wesgro.co.za
