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Six Eastern Cape companies participating at a permanent trade fair in Ningbo, China, have made significant inroads into the lucrative Chinese consumer market securing growing orders and distribution channels for their products.
 
This comes after development financier, the Eastern Cape Development Corporation (ECDC) took its fight for a greater share of the national export market to the east placing the local companies on a 30-month permanent trade fair in Ningbo, China in April last year.
 
Located northeast of the Zhejiang province of China, Ningbo has the largest seaport in China and the second largest in the world. It forms a major part of China’s import and export market. The United States Food Industry Association predicts that Chinese imported and exported food sales will grow at a speed of 15% year on year. To 2018, China will become the world’s largest consumer of imported and exported food. The Chinese domestic market size of imported food will reach up to $480 billion.
 
“For example, unique Eastern Cape African-style honey wine owned by Makana Meadery in Grahamstown, iQhilika, has secured an order of 600 bottles of the local beverage in little under a year exhibiting in Ningbo. The Chinese have been very receptive to the award-winning product which is based on honey. They believe in honey, they love honey. Honey is a vital ingredient in iQhilika and to match this demand, the company has developed an extensive beekeeping programme. We predict that in 2014 the order will rise to 1 600 bottles and to 2 000 in 2015.
 
“We are also excited mohair products producer Momentos of Africa have sold out their samples worth R10 500. A second delivery worth R11 250 has also been sold out. A third order of R38 250 by a merchant has already been paid for. This means our export interventions are working and should further boost the value of Eastern Cape trade. ECDC has facilitated exports to the value of R1,1 billion in the first six-month of 2013./14. A total of 54 new and existing businesses were assisted with integrated export development support,” says ECDC market access specialist Zodwa Kepeyi.

Kepeyi says ECDC is equally pleased that one of the largest processors of pickled cherry peppers in South Africa, Grahamstown-based Carara has secured a working relationship with Seea Seafood Restaurant which is owned by a large franchising group which possesses a franchising network and market capacity in over 10 major provinces in China.
 
“It’s predicted that the restaurant chain will use of 5,5kg  per day of cherry peppers amounting to an annual consumption of 2,2 tons a year.
 
“Ningbo therefore presents immense opportunities for the Eastern Cape as it could serve as a channel for Eastern Cape products to larger markets within China and the rest of the world. Our long-term view is to attract investment from China and boost employment creation in the province by acquiring long-term contracts and new investment. Between January and December 2013 the value of imported goods from South Africa into Ningbo is $382 million and has increased 21,7%,” says Kepeyi.
 
Kepeyi says the recent launch of the East London Exporters Club should also provide a platform for the city’s exporters to become globally competitive and to convert local traders into international players.
 
According to the development financier, East London now joins Port Elizabeth, Durban and Cape Town as the only cities with such a club. A 33 year old organisation with about 280 companies in the Eastern Cape, the exporters club provides a networking platform for the exchange of ideas, information and experience, liaison with other export orientated clubs and bodies as well as apply for funds to promote its objectives.
 
“For ECDC, the establishment of the East London chapter of the Exporters Club means traders form this region will save up on transport and opportunity costs related to travelling to Port Elizabeth in order to access the services of the club. It also brings ECDC closer to its clients and allows for improved interaction. It further allows traders in the region to share common experiences as well as strategies of how to deal with challenges that maybe unique to the area.
 
“Perhaps more importantly, this platform should result in more globally competitive exporters who are able to compete favourably with their international counterparts. It also seeks to convert the small local traders into meaningful international players,” explains Kepeyi.
 
Eastern Cape Exporters Club chairman Quintin Levey says the main objective is to bring all players in the industry together. This includes direct and indirect exporters as well as service providers in the industry. Service providers to the industry include banks, insurers as well as logistics companies.
 
“Exporters benefit from market intelligence, economic updates, access to informative speakers on a variety of export-related subjects, first-hand contact with government officials, liaison with business chambers and sector-specific information among other things. The most vibrant exporters club in the country which has seen membership double over the last five years, the provincial chapter also hosts the prestigious Eastern Cape Exporter of the Year awards. The awards are of the biggest functions in Port Elizabeth with more than 500 participants,” Levey explains.