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Freight & Trading Weekly

Absence of funding hamstrings exporters

11 Feb 2020 - by Liesl Venter
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CAPEAccess to funding remains one of the biggest challenges facing exporters in the We s t er n C ap e .According to Denan Kuni, head of international trade and development at Wesgro, while the majority of companies in the province produce and sell quality products to the domestic markets, many are struggling to access funding to export.“More funding should be allocated to building export capacity in companies and assistance in getting to markets should be more forthcoming – ie, funding for f lights, accommodation, and shipments of samples,” he says.The opportunity to grow exports exists, but without funding most companies will not enter the space.“A big potential opportunity is the African Continental Free Trade Area Agreement (AfCFTA),” says Kuni.Africa is one of the key areas identified by Wesgro to grow exports. Countries being targeted in 2020 include Angola, Botswana, Namibia, Mozambique, Zambia, Nigeria, Ghana, Senegal, Cameroon, Ivory Coast, Guinea, Kenya, Tanzania and Ethiopia.“Trading under the AfCFTA is set to commence this year, and if effectively implemented this could be a game changer for the continent,” said Kuni. “The rest of Africa is already the biggest export destination for Western Cape goods, despite significant barriers to trade. Any improvements in the efficiency of cross-border trade on the continent will therefore be advantageous. Africa’s consumer population is growing fast and there are significant opportunities for Western Cape exports to the rest of Africa.”According to Kuni enhanced logistics efficiencies and an enabling business environment are critical for successful exporting. Ongoing efforts should be made to ensure this is achieved.“Competitiveness is an ongoing challenge, and in order for exporters to f lourish they need to constantly maintain the competitiveness of their goods internationally,” said Kuni. “This means not only ensuring that exports are of the highest international standards and meet a host of stringent import requirements, but it also means that exporters need to be operating in an environment that is enabling and efficient for business.”He said Wesgro, in partnership with government at all levels, continued to try to support exporters by ensuring that they understood the export process, were well informed about the requirements of global markets, and were aware of opportunities and challenges regarding their products.

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FTW 14 February 2020

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