Labour-intensive export industries will insulate W Cape

The Western Cape’s labour-intensive
export industries are well placed to
take advantage of the shrinking rand,
insulating the province against the
worst effects of the worldwide economic
downturn.
According to Janine Myburgh,
president of the Cape Chamber of
Commerce and Industry, while the
economic outlook for the year has
been quite bleak, industries in the
agricultural sector in particular – where
the drought impact has not been too
severely felt – will continue to do well
in both traditional and new emerging
markets.
“Our fruit and processed agricultural
products such as wine are expected
to fare reasonably well this year.
Manufactured products in the province
like boats and yachts should also do
well.”
Myburgh said tourism was another
sector that would impact favourably on
the provincial economy.
“We don’t tend to look at tourism as
an export industry yet it is something
we should be doing far more often,”
she told FTW. “It brings new money
into the country and is a great job
creator. The weak rand at present
will undoubtedly increase our appeal
to foreign tourists and foreign filmmakers,
another growing industry in
the Western Cape.”
But, said Myburgh, it was essential
for business in the province to
understand that the weak rand would
only bring temporary advantages.
“Over the coming months we will
see the costs of imported products and
services rise and farmers, for instance,
will need bigger and more expensive
loans to buy new trucks and tractors.”
she said.