Range of export incentives is worth exploring

There is a limited number of direct export incentives available in South Africa, but carefully used they can provide an exporter with valuable assistance in developing his markets. A first area of incentive is participation in the five selected industrial development zones (IDZs) in this country. However, they are primarily to encourage geographical relocation of export industries to help develop some of the less prosperous regions – such as the Coega IDZ at the new deep-water port of Ngqura in the highly under-employed and economically disadvantaged Eastern Cape. And, as these development regions are removed from the main industrial hubs of the country, they are of limited benefit to the export industry in general. The most beneficial export incentive scheme, according to Nada Reyneke, head of international trade at the Johannesburg Chamber of Commerce and Industry (JCCI), is the Export Marketing and Investment Assistance (Emia) scheme – which is designed to develop export markets for SA products and services and to attract new foreign direct investment (FDI) into the country. And the JCCI, she told FTW, particularly encourages the use of the sections of Emia that are aimed at providing marketing assistance to develop new export markets and grow existing ones. In the chamber’s case these are benefits for individual exhibition participation; group outward-selling missions; and individual inward-buying missions. Under the ‘exhibition participation’ heading, the first area of assistance comes in the form of department of trade and industry (dti) assisting SA exporters by organising national pavilions to showcase local products at international trade exhibitions. The EMIA scheme bears costs for space rental, the construction and maintenance of stands, electricity and water charges, as well as freight charges, up to a maximum of three cubic metres or two tonnes per exhibitor. Then there is international trade exhibition assistance, where the dti provides financial assistance to export councils, industry associations, provincial trade and investment promotion agencies (PIPAs), joint-action groups (JAGs), export clubs and chambers of commerce, for international trade exhibitions where there is no national pavilion scheduled or approved. Also on offer are group outward-selling missions, where the dti provides assistance to SA exporters who seek to conclude export orders with foreign buyers. These missions are organised by export councils, chambers of commerce, PIPAs, export clubs or directly by the dti. For individual inward missions, assistance is provided to SA entities organising an inward buying investor, to make contact with them to conclude an exporter’s order or to attract FDI. Outside these sections of Emia are two other incentives. The first is assistance for companies to increase their competitiveness by supporting patent registrations, quality marks and product marks. The second is assistance for primary market research and foreign direct investment.