Businesses encouraged to export

MBOMBELA – To continue the economic momentum of the province, the Mpumalanga Economic Growth Agency (MEGA) recently hosted a three-in-one event to increase awareness of MEGA’s different operational divisions and its current respective services.

MEGA is Mpumalanga’s official economic-development agency, and is mandated to implement the economic-growth initiatives of the provincial government.

According to

Mr Andrew Bülter, foreign trade promotion manager of MEGA, the event was a combination of three elements, namely the MEGA business forum, the Department of Trade and Industry’s (DTI) export training workshop, as well as the South African foreign marketing officers’ orientation.

During the forum, the business community was not only briefed on the agency’s current initiatives, but it also served as a mechanism to understand the needs and challenges faced by the provincial business community. According to Bülter it also created the opportunity to build a relationships in support of economic development, contributing to a better life for everyone in the province.

The workshop focused on emerging and potential exporters and how to prepare small and medium-sized enterprises for the successful expansion of their businesses into international markets. According to Bülter it formed part of the National Exporter Development Programme (NEDP) and he stressed the importance to develop export-ready companies to ensure export growth, new market penetration and product diversification.

According to Bülter there are definite export opportunities in Mpumalanga as it consists of a diverse economy which includes agriculture, mining, manufacturing, electricity, construction, trade, transport, finance and communication services.

During his presentation it was announced that Mpumalanga contributed six per cent of South Africa’s gross domestic product (GDP), a total of 23 billion US dollars, in 2012. The manufacturing sector contributed 14 per cent of general growth properties (GGP) in South Africa, which mainly comprised Sasol, chrome-alloy and steel plants as well as sugar, paper, pulp and saw mills. It was, however, the mining sector which claimed the major portion with a total of 25 per cent. Various other sectors such as the tourism industry, as well as agriculture and forestry, also played a significant role in South Africa’s economy, Bülter stated. He said it was especially the exportation of macadamia nuts that drew special attention in the province.

The presentation showed that from 1993 to 2013 there was a significant upwards tendency in exports in the province, stating that Mpumalaga exports contributed R2 billion to the economy in 1993 and a total of R12 billion in 2013.

Bülter, however, encouraged aspiring exporters to do their homework properly and not to rush into things in order to increase international competitiveness which could result in a new and expanded export market.

Foreign marketing officers (FMOs) also attended the event to gain better understanding of the provincial economy as well as the challenges faced by the companies operating in Mpumalanga. According to Bülter they were stationed at all the South African embassies and high commissions where the DTI had an economic office. He added they were a key resource for South Africa’s trade and investment promotion as they were permanently employed in their respective foreign missions and not changed every four years. “As locals they have language, cultural, business intelligence and contacts skills which can be very useful four South African exporters.”

Mpumalanga’s major export

products:

• Ferro-alloys

• Coal

• Iron and steel

• Manganese

• Citrus fruit

• Fruit-juice concentrate

• Pulp and paper

• Treated poles

• Watermelons

• Macadamia nuts

• Avo, guavas, litchis

• Arts and crafts

• Woodchips

• Vegetables

• Flowers and foliage

• Sugar

• Chemical products.

Top-10 export markets for

Mpumalanga (2013)

• Netherlands

• Mozambique

• United States

• Japan

• China

• India

• Hong Kong

• Zimbabwe

• Angola

• Canada.