The African Continental Free Trade Agreement (AfCFTA) could be a game changer for the Western Cape which is increasingly looking towards Africa for exports. This is according to Terry Gale, chairman of the Exporters’ Club Western Cape (ECWC), who said removal of tariffs or reduced tariffs with key partners on the continent would undoubtedly boost the province’s exports. According to Denan Kuni, Wesgro’s Head of International Trade and Development, Africa has become the province’s largest trading partner. “A total of 46% of our exports in the Western Cape are going into Africa. The continent has overtaken Europe as our largest trading partner.” Whilst the AfCFTA tariff schedule still has to be negotiated, the
agreement is aimed at increasing intra-African trade significantly by allowing either free access or significantly reduced tariffs. “African countries are keen to work with the Western Cape,” said Gale. “However, currently the import duties are prohibitive and the services especially along the East Coast are not as reliable or competitive as we would like.” He said the ECWC was working hard behind the scenes to ensure the viability and sustainability of this agreement, with particular reference to
not only agricultural but manufactured goods as well. According to Kuni this was welcomed. “With nearly half of our exports into Africa it is extremely important to have a voice in the CfCFTA negotiations whether that be the Exporters' Club, Tralac, Wesgro, private sector or government.” Gale said it was imperative for exporters to keep up to date with developments not only around the CfCFTA but other pertinent issues impacting on their business. Considering the impact of the drought on many of the province’s top exports in 2018, Gale said there was still a very strong export-orientated outlook in the province and hopes were high for 2019 to be better than last year, even
if just marginally. “I do believe we are in a more positive space, having overcome the worst drought in history. “However, the wine industry is suffering as a fall out from the drought and also the exorbitant costs involved in the upkeep of the vineyards, and then land expropriation rears
its ugly head,” he said. “There is also the increased export potential of our products into the UK, if, and when Brexit comes into force. The US is still a good market with growing potential, if we plan correctly.”
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A total of 46% of our exports in the Western Cape are going into Africa. – Denan Kuni
