The opening of the Thai Trade Distribution Centre in Cape Town in July 2011 confirmed a trend that has been growing in South Africa’s trade profile in recent years – more and more imports coming into the country from the East. But Western Cape companies are energetically attempting to reverse the flow, and the province’s export profile is growing in the diversity of products and services being exported as new markets are being discovered.

In 2009, Western Cape exports totalled R51.9-billion, a figure that was down 13% over the previous year because of the international recession. Europe is the Western Cape’s biggest export destination (R23.5-billion in 2010) with the United Kingdom being the largest single-country market. Exports to these markets are dominated by agricultural products such as edible fruits.

The main export products of the province are agricultural products, downstream petroleum products, agri-processed products, tobacco, chemicals and machinery. Services is a growing sector in which the Western Cape is excelling. The Western Cape benefits from preferential trade agreements that South Africa has with the US and EU and its membership of the Southern Africa Development Community (SADC). The recent acceptance of South Africa into the BRICS group of nations (Brazil, Russian, India, China, South Africa) holds great potential for increased exports.

The Western Cape has not been exporting to China to the same degree as other South African provinces because China is primarily focused at this stage on importing raw materials such as iron ore and coal. In this sense, China is similar to Africa within the Western Cape export bouquet – the number-one product in both instances is refined petroleum.

Africa is growing in importance as an export destination for Western Cape businesses. With a figure of R10.2-billion achieved in 2010, the African market is now second after the EU. About 36% of South Africa’s refined petroleum exports to Africa come from the Western Cape. Other products being sold into Africa are hot-rolled products of iron/steel (R574-million), fruit (R358-million) and maize (R345-million, 2009, Wesgro).

A field with huge potential for growth is in providing services to the oil and gas industry in countries such as Angola and Nigeria. The Middle East’s demand for fresh and processed fruit and fruit juice presents an opportunity for Western Cape exporters. Within the established markets, a country like Turkey provides many opportunities for the Western Cape to play to its traditional strengths. Exports to that country grew by 104% between 2009 and 2010, primarily because of the sale of fish valued at R13.9-million.

The value of fruit
The export of edible fruits to just two European countries (UK and Netherlands) accounts for 20% of the share of total exports from the Western Cape. The total value of edible fruits and nuts in 2009 was R10.6-billion, which made it the top-earning commodity, ahead of mineral fuels on R9.1-million and beverages, R6.6-million (Wesgro). The Western Cape’s biggest international competitors in the export of fruit are Chile and Argentina.

Wesgro has further broken down the value of exported items within sectors as follows (as at 22 March 2011):
1 Grape wines R5.9-billion
2 Oils, petroleum R5.8-billion
3 Citrus fruit R3.9-billion
4 Grapes R2.8-billion
5 Apples, pears R2.8-billion
6 Petroleum oils R2.2-billion
7 Liquid, gas centrifuges R1.6-billion
8 Fruit, nuts R1.2-billion
9 Diodes (LED light bulbs) R1.1-billion
10 Flat-rolled iron/steel R0.9-billion

Companies such as Capespan, which has its headquarters in Cape Town, and DoleSA, which is part of a large global company, move huge quantities of fruit around the world. DoleSA has more than 200 independent growers supplying it with fruit, which it packages into about 15 million cartons every year. Capespan, which has the Outspan brand in its stable, exports about 80 million cartons of fruit to 66 countries. It also controls fresh produce terminals (FPT) and has a fleet of ships operated by a company within the group, Cape Reefers.

Top exporters
The Western Cape Exporter of the Year Competition is run by the Cape Chamber of Commerce and sponsored by Absa. The 2010 winner was Aerodyne Technology, a designer and maker of structural components for aircraft seating. Tenticle CC won the Small Exporter Award for selling its Bedouin-style tents into the international market.

In 2011, an exporter of wall panel heaters, Econo-Heat Energy Efficient Appliances, was named as Exporter of the Year and won an award for innovation. The wide range of products and services being exported can be seen in the list of finalists for the 2011 competition:

DCD-DORBYL - Marine Ship repair, oil and gas industry
Kelp Products - Plant growth stimulant
Econo-Heat Energy Efficient Heating Appliances - Energy-saving heaters
JF Hillebrand - Wine forwarder
Hose Manufacturers - Fire hoses
Protea Chemicals Cape - Chemicals and polymers
Quantam Sail Design Group South Africa - Yacht sails
TESA Palisade Fencing and Security System - Fencing
Folio-Online - Translation, copywriting, proofing, transcription services