A strong case for strengthening bilateral trade relations between Belgium and South Africa was made this morning by Mathias Bogaert, the first-ever consul general to be posted by Brussels in Cape Town.
Addressing a seminar aimed at highlighting the Benelux country’s gateway options for Western Cape (WC) companies into the Europe Union (EU), Bogaert said Belgium’s strategic position at the heart of the EU could help exporters gain a firm foothold in the world’s biggest economic bloc.
He mentioned the Western Cape’s double-digit growth in the fresh produce agricultural market and South Africa’s strong automotive exports as key factors worthy of a stronger relationship.
With particular reference to the latter, Bogaert emphasised that the Port of Zeebrugge was Europe’s largest port for importing vehicle and component parts.
He also used his time at the podium to dispel a falsehood, that China is still South Africa’s biggest trading partner.
Referring to data recorded in 2019, he said South Africa’s total external trade to the EU was 22.9% compared to China’s 14.7%.
Consistently getting back to Belgium’s strategic position in relation to the other 26 member states of the EU, Bogaert pointed out that in addition to Brussels being the capital of the EU as well as Belgium, the country was logistically within a 500-kilometre radius of where 40% of Europe’s GDP was generated.
More importantly, Brussels is even closer to key capitals such as Paris, Frankfurt, Amsterdam, and London, representing wider socio-economic zones that collectively generate 75% of Europe’s GDP.
With regard to the Western Cape’s double-digit growth in the production of fresh produce, which makes up a large part of exports to the EU, Wesgro CEO Tim Harris said the province’s agricultural performance had stayed on course during last year’s Covid-19 outbreak.
The head of the Western Cape’s tourism, trade and investment promotion agency told seminar attendees that whereas the province had experienced a 6% decline in economic growth, the agri-sector hadn’t experienced a decline at all.
The manufacturing sector was hit hard though, he said, as it was very hard to get production going when you were under a hard lockdown.
He reiterated Bogaert’s sentiments that there was significant scope for boosting business relations between South Africa and Belgium.
He mentioned that although trade between the two countries was already strong, it was interesting to note that South Africa’s export trade balance with Belgium was smaller than that of Nigeria and Togo.
Nigeria was understandable, Harris said, seeing as it was the continent’s most populous nation.
“But Togo, it’s a very small country. What’s in Togo?”
