Eastern Cape
Nelson Mandela Bay Metropolitan Municipality
South Africa
Sector
Automobiles
Business Support Services
Development Finance
Massive public-private infrastructure investment in the Eastern Cape has placed the provincial economy on a steep growth trajectory. Trade-orientated manufacturers in the province are increasingly able to take advantage of this export-friendly environment, with millions of rands worth of trade deals being concluded in recent months. Central to this growth is the efforts of the Eastern Cape Development Corporation’s Trade Promotion Unit, which this year spearheaded a series of international trade missions, already resulting in R5-million in direct export deals, with more in the pipeline.
The first of these missions was to two Scandinavian countries, Sweden and Denmark, where five Eastern Cape companies – Momentos of Africa, Cape Mohair Spinners, Rainbow Hut, Valor Fruit Processors and Arts Unlimited – were put in direct contact with numerous trade contacts. Among these were the Swedish Chamber of Commerce and Open Trade Gate Sweden, a new contact point for the facilitation of trade between Sweden and various of the world's developing countries. Acting as a one-stop information centre for people wanting to export to Sweden, Open Trade Gate Sweden is one of the major trade contacts in this country, offering free and user-friendly information on trade rules and regulations.
The mission was highly successful, with virtually every one of the five companies hosted receiving either a direct order or strong indications of future trade relations in the near future, said ECDC’s acting Trade Promotions Manager Zodwa Kepeyi. “ECDC was also able to significantly strengthen relations with the South African embassies in these countries and to strengthen ties with Swedish representatives, which will lead to a follow-up mission later this year.”
The Unit also hosted three automotive industry companies – Jendamark Automation, Prisma Engineering and OPM Tooling – on a Department of Trade and Industry-led mission to Chicago and Detroit in the USA. This mission resulted in concrete trade spin-offs, with one of the export companies securing a R3.6-million component deal with General Motors.
In addition, three Eastern Cape companies – MFA Global Plastics, Eastern Province Livestock Agency and Longmore Flower Estate – were invited on a trade mission to the Middle East, incorporating Oman, Saudi Arabia and Dubai. Despite the fact that this was the first such mission, several firm trade commitments were received, with the mission netting in excess of R2.5-million in trade deals for the province.
'These are very exciting spin-offs for the province, and for the individual companies who we have taken along on these missions,' Kepeyi said.
'The overall strategy specific to trade promotion is to make good use of all available opportunities and expose local companies to international trade partnerships,' she said. 'Events such as trade missions enable individuals and groups to showcase the products and services originating from the province. Equally importantly, they facilitate the sharing of trade experiences from the first economy to the second and third economies.'
Further strengthening trade opportunities for local companies, ECDC has become a fixed exhibitor at the newly-launched Absa International Trade Bureau (AITB) at OR Tambo International Airport. Located directly across from the International Arrivals Hall, the R15-million facility will put 122 of South Africa’s premier exporters – five of them from the Eastern Cape – in direct contact with a potential 1.2 million business travelers. AITB is the first of its kind anywhere on the African continent. It facilitates foreign trade with, and investment in, South Africa, while maximising local companies’ exposure to foreign markets as cost effectively as possible. ECDC will host five Eastern Cape exporters at the AITB on a six month rotational basis.
'This is a great opportunity for local exporters to interact with international traffic coming through the OR Tambo International Airport,' said Kepeyi. 'OR Tambo International Airport is the busiest in Africa and the AITB is premised on a successful trade centre model which exists in 308 locations in 101 countries.'
The companies being hosted by ECDC demonstrate the diversity of entrepreneurial activity in the province, ranging from engineering production through to craft products, said Kepeyi. 'Many travelers have time between flights and we will be looking at the direct benefits that ECDC and our partners’ exhibitions at the AITB have on investment and export promotion. This permanent exhibition will enable us to inform international business travelers of what is available in the province. It is a window to a captive audience from which we are keen the benefit.'
