Premier Mabuyane
MEC Pieters
Acting Executive Mayor, Cllr. Ntsasela
ECDC CEO, Ayanda Wakaba
Members of the Diplomatic Corps
Officials and Dignities from the public and private sectors
Ladies and gentlemen
It is a great honour to be addressing you today at the opening of the Eastern Cape Export Symposium. As a born and bred citizen of the Eastern Cape, I am passionate about this province and motivated by its potential for largescale growth and success.
South Africa has entered a new era with the establishment of the Government of National Unity. A key priority of this new administration is driving inclusive growth and job creation, using the National Development Plan and UN Sustainable Development Goals as guiding frameworks. We are also committed to collaborate in a more pragmatic manner with our Provincial Investment Promotion Agencies and municipal governments towards effectively addressing economic stagnation, high unemployment, and rising living costs.
It is in this regard that I am particularly pleased to be sharing this platform with the Eastern Cape Development Corporation and representatives from the Eastern Cape Provincial Government and Municipalities to engage on this critically important topic.
One of the Department of Trade, Industry & Competition’s key focus areas is a renewed export drive to lower the risk of slow domestic growth, while also identifying high growth opportunities. Bolstering our international competitiveness and expanding exports markets is key to the Eastern Cape and South Africa’s economic recovery and growth trajectory.
South Africa’s export performance has faced significant challenges in recent years, impacted by both global and domestic economic conditions. Globally, weaker demand in key markets, declining commodity prices, and rising protectionism have negatively impacted South Africa’s traditional export sectors. Domestically, infrastructure inefficiencies, such as rail and port constraints, have further hindered the ability of South African firms to compete optimally in international markets.
I believe that South Africa can become an export-oriented economy with a dedicated focus on implementing measures to boost competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters, and cultivating beneficial trade alliances with other nations.
On this note, Minister Parks Tau and I recently attended the AGOA Forum in Washington. The South African delegation was positively received, and I can confirm that South Africa is still highly regarded as an investment destination. It was also pleasing to find bipartisan and bicameral support for the renewal of AGOA, among members of Congress.
the dtic is going to find ways to diversify our exports in relation to the product mix with a particular emphasis on manufactured goods, as well as from a regional perspective to take advantage of stronger growth in non-traditional markets. It is therefore imperative that we raise the level of competitiveness of companies in order to reduce our country’s high import reliance.
The Eastern Cape is well positioned as a gateway for expanding export markets due to its three ports providing the province with a unique competitive advantage.
Manufacturing has traditionally been the driver of economic and export growth in the province primarily driven by the automotive sector, which is the largest manufacturing sector in the Eastern Cape. The province is home to four of the seven Original Equipment Manufacturers (OEMs) operating in South Africa and hosts approximately 100 major component manufacturers.
The Eastern Cape is also the country’s second-largest citrus-producing province contributing 25% of the province’s GDP. The province features as the fifth-largest exporter of lemons in the world and produces other fruits including mandarins, oranges, and grapefruit. Additionally, the province hosts the largest percentage of the country’s livestock, producing 30% of South Africa’s milk, 36% of its wool, and 75% of its mohair, with 70% of the mohair exported to Italy and China.
I would like to also acknowledge the challenges our agricultural sector is facing with certain export products to markets such as the European Union. We are alive to these issues and are actively engaging the Minister of Agriculture John Steenhuisen to find solutions. We also continue to pursue our dispute at the World Trade Organisation.
As alluded to earlier, we must focus on enhancing the competitiveness of our export industries by increasing productivity, reducing costs, improving the ease of doing business, and shifting towards value-added products.
Expanding and diversifying into new markets, particularly within Africa under the African Continental Free Trade Area (AfCFTA), presents an exciting opportunity for manufacturing growth in the Eastern Cape, while further developing value chains as a gateway into the continent.
Modernising infrastructure, streamlining customs processes, and simplifying regulations will reduce logistical bottlenecks and regulatory barriers, making it easier for businesses to export. the dtic will play a key role in facilitating engagements with various departments to find solutions to these and other challenges faced. Additionally, better access to export financing, targeted incentives, and support for digital trade will empower more businesses, especially SMEs, to reach global markets.
Further to this, strong public-private partnerships are crucial for aligning policies and creating an enabling environment for exporters. Collaboration between the government, private sector, and trade associations can address challenges and develop effective export strategies. Investing in skills development, promoting South African brands internationally, and continuously monitoring export performance will ensure that our country can adapt to global market changes and sustain long-term export growth.
To this end, I am pleased that the dtic has been engaged with the ECDC and other Provincial Trade and Investment agencies ahead of the launch of the Export Development and Promotion Forum. We trust that through this partnership, we will collaborate and find mutually beneficial solutions that stimulate inclusive growth and job creation.
I am convinced that working together through meaningful partnership, we will achieve the objectives set out of having in-depth discussions on potential opportunities and sharing insights that are aimed at enhancing trade relations between our country and its trading partners. I would like to wish you fruitful deliberations over the coming days.
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