Drought scuppers Cape’s export growth trajectory

The Western Cape recorded an annual average export growth of 17.84% between 2012 and 2016, but one of the most severe droughts in decades is expected to impact these figures significantly in 2018. According to Wesgro, exports from the Western Cape totalled R121.09bn in 2016, an increase of 3.8% from 2015, slightly lower than the 6.54% growth in 2015. While this was largely due to the depreciating rand, the province’s ongoing efforts to promote and grow exports are bearing fruit. According to Denan Kuni, head of international trade and development at Wesgro, exports to the Americas have grown by 25% over the past few years, and 10% to Asia. “The products contributing to this growth were agricultural as well as engine parts, diodes and hot-rolled iron and steel.” The steady growth in particular of fruit juice and apples and pears between 2012 and 2016 played a major role in the overall export growth. In 2015, the apple-producing region of the Western Cape alone supplied 73% of all fermented beverages like cider into Africa. The province accounts for 18% of Africa’s global fruit juice imports, 14% of the apple and pear imports, 16% of citrus imports and 20% of all wine imports. According to Kuni the province has also seen export growth to markets such as Kenya and Mozambique while demand from West Africa was continuing to increase. The exact impact of the drought on exports remained unknown at this stage but efforts to support the sector were under way, said Kuni.

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