WORLD BANK RECOMMENDATIONS ON REGIONAL INTEGRATION AND BUILDING OF VALUE CHAINS IN LINE WITH SA GOVERNMENT POLICY

World Bank recommendations that South Africa should deepen regional integration and build regional value chains are broadly aligned to South African government policy and work programmes. This was said by the Chief Director of Policy and Research in the Department of Trade and Industry (the dti), Dr Brendan Vickers. Dr Vickers was speaking at the South African Economic Update report-back on export competitiveness presented by the World Bank at the dti.

The World Bank report focused on South Africa’s export competitiveness and examined the performance of 20 000 companies that were involved in exports between the year 2001 to 2012. According to the report, sub-Saharan Africa had surpassed Europe as the biggest export destination for non-mineral export from South Africa in the past decade. -For South Africa to achieve export growth it needed to take advantage of three opportunities of increased competitiveness, lower trade and input cost, and also greater regional achievement.

Vickers indicated that the update provided a useful overview of recent economic developments in South Africa.

“The recommendation related to deepening regional integration in Africa is fully recognised and being addressed in the Southern African Development Community (SADC), the Southern African Customs Union (SACU) and now under the Tripartite Free Trade Area (FTA). Negotiations on trade in services in SADC are beginning to gain traction and there is work underway to address Non-Tariff Barriers and trade facilitation,” he said.

Vickers added that work is also underway to begin building regional value chains.

“The argument that South Africa is overly protected against imports is hard to sustain as South Africa’s trade weighted average tariff is 7.4%, while 54% of tariffs are set at zero. We are extremely open to many of our largest imports partners from the European Union (EU), the European Free Trade Area and SADC countries,” he emphasised.

He said there are already 2000 firms from the EU that are plying their trade in South Africa, 600 from the United States and many others.

Vickers explained that South Africa’s economic history demonstrates that the country’s relative success in exports of medium level technology goods has not been a result of import liberalisation but of prior and ongoing industrial policy.

“In assessing South Africa’s export performance, we also need to consider demand conditions in our export markets,” he said. 

SA ARTISANS AND ENTREPRENEURS GET LONG-TERM DISPLAY OPPORTUNITIES AT ONE OF THE WORLDS BIGGEST DISPLAY MARKETS

The community of Atlanta, the biggest city in the US state of Georgia, are being exposed to some intriguing examples of the home decor and textile-manufacturing talents of a wide range of South African artisans and entrepreneurs.

After an absence of five years from the Atlanta’s Americasmart Showrooms, the Department of Trade and Industry (the dti) has re-established a permanent showroom to showcase local products manufactured by small businesses and cooperatives. This is one of the of the dti interventions to broaden the participation of SMME’s and Cooperatives in the economy through global markets. The reinstatement of the showroom to this market has been widely welcomed - and the quality of the goods that have been put on display has been fulsomely praised.

In reopening the showroom, the Deputy Minister of Trade and Industry, Ms Elizabeth Thabethe, said she was highly impressed by the talent and skills that had gone into designing and crafting an ‘impressive array of fashionable products.

The participating artisans at this showroom consist of an interesting mix - of both the known and the up-and-coming entrepreneurs. Among the more established businesses participating is the Bayede! Royal Signature Textiles from KwaZulu-Natal.

Bayede! (an isiZulu term that translates into English as ‘Hail the King!’) has strong connections with the Zulu Monarch, King Goodwill Zwelethini, who, in backing it as a job creation project, has given it his ‘royal seal of approval’ and hailed as the first to develop royal and luxury product range for the African continent.

Some of the products on display include sets of ottomans and coffee tables made out of recycled tyres by Yolanda Msutwana and Sazi Mkunqwana, and their East London-based company, Ozzys Eco Decor, and award-winning baskets hand-woven out of ukhasi grass and ilala palm leaves by Angeline Masuku. Some of the participants include Tlanggape Upholstery, which manufactures customized furniture, in addition to restoring upholstery (as well as customizing woodwork, authentic African fabric and leather), is based in Polokwane, in Limpopo 

Deputy Minister Thabethe said that the cultural diversity of these products ought to be a source of inspiration to all South Africans. Thabethe stated that she was convinced that American and international consumers will be impressed with the quality of the goods on display.

In his message of support, the South African ambassador to the USA, Mr Ebrahim Rasool, said thrilled that the dti has brought project to fruition.