Energy could unlock US trade ties for SA

The city of Houston, America's number one export market, is seeking new trade partners in South Africa to boost trade between the two parties as the potential for collaboration and growth “has never been better”, particularly in the energy sector. This was the key message at a press conference held in Johannesburg by key private and public trade sector stakeholders from the City of Houston during a week-long trade mission which included visits to key South African trade destinations in Gauteng and Cape Town last week. The delegation, led by Houston mayor Annise Parker, hosted a “Doing Business in South Africa” seminar for South African businesses and investors during the week. “Our economy is diverse ad robust and it matches up well with the types of industries that South African entrepreneurs and businesses are pursuing,” said Greater Houston Partnership (GHP) vice president of international investment and trade, Genaro Pena, adding that the city led in several industries, including oil and gas, energy, transportation and manufacturing. “We want to provide a platform for other South African companies to follow Sasol’s example and set up office in Houston and/or do business in the city,” said Pena. Responding to a question around South Africa’s inclusion in the African Growth and Opportunity Act (Agoa), which is up for renewal in 2015, Pena said he was “confident” this was a mere formality as there was strong US business support for this. “South Africa is seen as a gateway into sub-Saharan Africa and one of the strongest economic powerhouses on the continent,” he said. Texas Senator Rodney Ellis reiterated his commitment to working with South African leaders to ensure the city and state were able to continue the “solid partnership that has served the two regions so well”. He told FTW that Houston ranked first in handling US foreign cargo tonnage and that annual trade between SA and the city totalled US$1.3 billion in 2012. Mayor Parker noted that this was the first time in more than 10 years that a Houston mayor had visited South Africa. “We now have a much greater knowledge and insight into South Africa and the potential it holds,” she said, adding that with each trade mission, the city looks to grow its aviation ties. “Anytime we can improve the options for getting to Houston from other points in the world, we make it easier for businesses that wish to explore new opportunities,” she said. To meet increased demand, the William P Hobby Airport – currently a domestic hub – is being converted into an international hub which will serve over 200 global connections, said Mario Diaz, director of the Houston Airport System. INSERT & CAPTION We now have a much greater knowledge and insight into South Africa and the potential it holds. – Annise Parker FACTS & FIGURES ● Houston’s exports to South Africa totalled $923.6 million in 2012 ● Imports from South Africa amounted to $423.9 million in 2012 ● Total seaborne trade between SA and Houston was worth $1.2 billion in 2012 and had a vessel weight of 517.1 million kilograms ● Total annual air cargo trade between Houston and South Africa rose 46.8% in 2012, valued at $99 million and amounting to 1.1 million kilograms