Source: Department of Trade and Industry
Title: Mpahlwa: Opening of Export Africa 2005 and Export Week
Speech by Minister Mpahlwa at the opening of Export Africa 2005 and Export Week
Representatives from Standard Bank
Programme Director
Ladies and Gentlemen
Africa is not the place that it was 10 years ago. The change that has happened on the African continent over the past 10 years is remarkable. Long standing conflicts have come to an end, democracy has come to countries were there was none, the African Union is able to make interventions to prevent the escalation of conflict where it does occur, the average growth rate in Africa last year was 4.5%, and there are many more positive changes taking place. The conditions and a favourable climate for growth are in place.
As we gathered here to open Export Africa 2005 and Export Week we can see how the climate for growth has improved, and there is now greater co-operation and more interaction between governments and businesses from different African countries than ever before.
With the African Union and the New Partnership for Africa’s Development (NEPAD) programme as our guiding framework, we can see greater levels of co-operation between governments of African countries in the areas such as telecommunications, trade, transportation, customs regulations, aviation, tourism, as well as by local municipalities. Importantly, the opportunity presented by NEPAD to improve our infrastructure and cross border infrastructure has resulted in greater ability to move between countries. These improvements have opened up business opportunities and opportunities for greater levels of trade. Indeed Africa is becoming smaller.
On the economic front we find that the levels of trade between African countries are starting to increase, and co-operation between chambers of commerce have started to take place. This has seen the levels of Africa’s total trade grow almost five fold between 1994 and 2004, with South Africa alone seeing its volumes of trade with other countries in Africa more than triple over the past 10 years. The potential to expand our levels of intra-Africa trade is significant.
Today’s event is an opportunity to celebrate. We can celebrate the progress that we have made thus far, we can celebrate the fact that we are able to hold such an event, and we can celebrate the success of this event and the high quality of exhibitions. We can also celebrate the opportunities and hard work that will come out of the contacts made at this event, as well as celebrate other efforts that have been made at improving trade between African countries, and between Africa and the rest of the world.
We can celebrate that Africa is becoming smaller and in greater reach.
This celebration however does not mean that we are unaware of the challenges and hurdles we still need to overcome. Some of the challenges relate to moving goods across borders, the high costs of transport, the backlogs at ports, and delays in ensuring compliance with regulations. These problems exist, but we are working to overcome them. Regular feedback from organised business formations helps to identify specific bottlenecks, which we can then start to address.
Ladies and Gentlemen, as South Africa we are aware of our role on the continent. As the largest economy in Africa, with our GDP contributing quarter to a third of Africa’s GDP, we are a significant economic force and we have a significant impact on the rest of the continent. A recent International Monetary Fund (IMF) survey showed that a 1% increase in South Africa’s economic growth can be correlated to a 0.5% to 0.75% growth in the rest of Africa.
It is for these reasons that the South African government is supportive of our business community becoming more involved in Africa. We are encouraging our businesses to invest and increase levels of trade, which includes both exporting and importing. I believe there are many opportunities that the South African business community have lost by not sourcing products from our neighbouring and other countries on the continent. It is in all of our interests for us to grow the levels of trade between African countries, and use trade as a means to further develop our continent.
The Southern African Development Community (SADC) trade protocol will further promote economic integration and regional economic co-operation.
At events of this nature and in general when I speak to South African business people, I have a consistent message, which is: there are significant opportunities for South African businesses, both big and small, in other countries in Africa; that you do not need to be a big businesses to become involved in trade with other African countries, and most importantly I say, Africa and the Southern African region in particular, represents one of the best opportunities for expansion by forward-looking South African firms. This expansion contributes not only to the growth of individual firms but contributes to economic development of the region as a whole.
We should also recognise that for smaller enterprises or enterprises with little experience in international trade it is often easier to enter into regional trade relationships, and use that experience and knowledge as a basis on which to delve into the global marketplace.
Ladies and gentlemen, I said at the media launch of this event a few months ago, “the South African government actively supports the vision of an Africa that is self-reliant, innovative and enterprising, but also interdependent.” The dti is therefore pleased to participate in Export Africa 2005, as it is a practical step towards growing the levels of trade and in contributing towards the “African miracle”.
Visitors to Export Africa will find a wide range of products, which are manufactured in Africa. These products highlight the potential of our continent to start producing more value added goods and to move away from our historical dependency on mineral extraction and commodity production. Not only does the exhibition reflect the diversity of the South African manufacturing sector, it also introduces exporters from throughout Africa - literally from the north to the south of the continent. These include such countries as Tunisia, Swaziland, Malawi, Ghana, Nigeria, Namibia and many more. I welcome the participants from these countries and I hope that their visit here and participation in this event is fruitful. The expectation from the organisers of the event are that it should be very fruitful; they have informed me that delegates from 16 African countries and at least 20 countries in Europe, Asia, the Middle East and North America, will be passing through these halls. Many will be looking for suppliers.
Programme director, today I have also been asked to officially open Export Week. This is a dti initiative, which aims to build the capacity of potential, new and experienced exporters, and has been combined with Export Africa. Export Week, for those of you who are not aware, involves practical export workshops for interested companies, and includes:
* Export training workshops in marketing and logistics
* Export market workshops, designed to assist exporters to identify new business opportunities in important global markets
* Export finance workshops, covering such key issues as export finance and export risk as well as briefings on marketing assistance offered by the dti to exporters.
This year, in line with our commitment to regional economic growth and having balanced trade patterns within the region, we have included a workshop for businesses from other African countries on exporting into the South African market.
To conclude I would like to acknowledge the outstanding co-operation that has been developed between all key parties in the planning and management of both Export Africa 2005 and Export Week; and I would like to thank the organising team. This event has been an excellent example of joint public/private sector co-operation in achieving an important export objective. These parties include many of the members of the dti and TISA export promotion team; Hweba Africa, the organisers of Export Africa 2005; and Standard Bank and Stanbic Bank Limited, who are sponsors of Export Africa 2005. Thanks also to those dti Foreign Economic Representatives who have travelled to South Africa to conduct the Export Market Briefings and to other organisations that are also conducting workshops within Export Week.
I wish all participants in Export Africa 2005 and Export Week a successful event, may it result in new business opportunities and growth for your companies.
I thank you.
Issued by: Department on Trade and Industry
17 May 2005
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