SAFLEC welcomed an inward buying mission from Copperbelt Shoes, from Zambia in October 2016. The team visited several factories, in aim of securing business of Safety and security footwear. The group are currently in discussions with three Footwear companies in view of future business windowsproductskey.org and have secured and paid for orders estimating to 18000 pairs from two companies. Confidentiality of the companies are being maintained as discussion ensue to enlist two other footwear companies . The group CEO has pledged to support SA Safety footwear mwindowsproductkey.com secure with a further USD 380 000 worth of business within the first half of 2017. Watch this space.
The annual meeting of export councils, private sectors and stakeholders with Government to move ahead and grow SA exports was held in Johannesburg Midrand at the end of October 2016. The meeting was opened by the Director General of The Department of Trade and Industry, Lionel October .
South Africa: ‘We need to up our game to provide support to exporters’ – said Director-General, Lionel October
October said exporters needed more support on institutional measures as well as financial to the level of the export bank. He said government was in fact in the process of converting the Export Credit Insurance Council into an Export Import Bank to ensure that exporters and export councils have the necessary resources they require. “Countries do not export, companies do. At best we can play the facilitating role cheapestwindowskey.com but companies should also play their role. We must close the gap between government and exporters, identify top 100 exporters and work with them to break into markets,” said October. He highlighted the importance of driving transformation and ensuring that companies are compliant with the Broad-Based Black Economic Empowerment (B-BBEE) legislation for government to assist them.
Various panel sessions keystaging.ca included the following topics over the two day workshop:
- Institutional Arrangement: Government by, Moderator: Ms Pumla Ncapayi -Deputy Director General: TISA, the dti
- Institutional Arrangements: Private Enterprises by Moderator: Dr Martyn Davies, Managing Director-Emerging Markets, Deloitte
- Africa as an Export Market by Moderator: Mrs Nerisha Jairaj, South African Footwear and Leather Export Council
Exports grew by 3% in the second quarter of 2016 compared with the same period in 2015, supported by manufacturing and mining exports, particularly platinum group metals. The first half of the year saw a two percentage point decline in the share of exports to African markets compared with the same period in 2015, reflecting weaker economic conditions in the region.
In recent years, despite the large and sustained depreciation in the value of the rand, South Africa has not experienced strong export growth. Since 2010, the real effective exchange rate has depreciated by 20.9%. Yet the main factor in export growth is global demand, which has been moderate. A one-percentage-point increase in global demand could add as much as 0.3 percentage points to medium-term growth.
Soft domestic demand was reflected in the decreased volume of imports, which fell by 3.1% in the first half of the year compared with the same period in 2015. Notable exceptions included vegetable products, oils and fats, where increases of between 43 and 60 per cent reflected the effects of the drought. Over the medium term, improved domestic demand should support import growth, but the weaker currency will limit the expansion of volumes. Imports are expected to contract in the current year and grow by 2.7% in 2017.
The current account deficit narrowed in the second quarter as net exports increased and the trade account recorded a surplus, despite some weakening of the terms of trade. The deficit was funded through an increase in net portfolio investment, mainly into government bonds, and a rise in net foreign direct investment. Over the next three years, the current account deficit is expected to average 3.9%, down from an average of 5.2% between 2013 and 2015. The forecast does not project any major gains in the terms of trade.
Ms Jill Atwood-Palm from the South African Fruits and Vegetable Canners Association said she appreciated the interaction by government, agencies and export councils and highlighted the importance of continuous engagement, as sharing of resources will ensure that the common goal of increasing exports is achieved.
Export councils as well as provincial departments participating in the workshop expressed the need for collaboration, communication and increasing the partnership between the dti and the exporters. The workshop also resolved that Trade Invest South Africa (TISA) within the dti leads the process of developing an action plan derived out of the Integrated National Export Strategy to ensure that the objectives are realised.
The Chief Director for the Incentive Development and Administration Division of the dti, Mr Hawie Viljoen, said the department was committed to assist exporters even under the tight budgetary constraints. According to Viljoen the department had introduced more stringent criteria in terms of providing funding for exporters into the international market.
“Some of the criteria that we had to introduce included improvement in terms of strengthening post-event export benefit tracking to ensure that the companies we fund are able to increase exports, to ensure high impact and value for money,” said Viljoen.
He highlighted that the importance of exporters making use of opportunities available for export but ensuring that there is value for money in terms of what government puts in.
According to the Director of Americas Bilateral Trade Relations in the International Trade and Economic Development Division (ITED) of the Department of Trade and Industry (the dti) Mr Malose Letsoalo, South Africa is only utilising 141 tariff lines out of the 1835 that are there under AGOA. He added that with regards to the 3 400 non-reciprocal arrangements, South Africa was only utilising 459.
“We have experienced a lot of change and diversification in terms of our exports to the United States of America market from just exporting mainly commodities between 1994 and 2000, to more value-added products since 2001 to date,” said Letsoalo.
He highlighted that the value-added products included among others nuts, automotive, chemicals and wines, and said more of the opportunities exited in the sectors of agricultural products, automotive components and capital equipment among others.
“TESA needs to take advantage of trade opportunities provided by trade agreements like the SADC protocol, The European Free Trade Agreement and the Economic Partnership Agreements with other countries. This will assist us to deal with the triple challenges of poverty, unemployment and inequality,” said Letsoalo.
In 2008, Majda Rabin started her career in fashion design. Inspired by the unique texture of ostrich leather and tactile elegance of crocodile skin, Majda saw the potential of these inherently African objects to add exquisite detail to a leather handbag and belt.
Surprised by how difficult it was to find accessories that utilized natural and exotic leather, Majda was inspired to create her own bespoke range of affordable and aspirational luxury leather accessories and thus Chimpel was born.
In the 2016 Exporter of the year awards held by the Cape Town Business Chamber, Majda Rabin of Chimpel was awarded as a finalist for the strides she has made in exports. Chimpel exports around the world with major destinations being USA. At a recent showing in Turkey, her products were purchased by the Embassy and contacts were made with Valentino.
The winners of the 16th edition of the 2016 KZN Exporter of the Year Awards, a partnership between Transnet Port Terminals [TPT] and the Durban Chamber of Commerce & Industry [DCCI], were announced at a glitzy gala banquet held at the iNkosi Albert Luthuli International Convention Centre in Durban on Thursday night, the 20th of October 2016.
This year saw the introduction of four new categories, of which three of these awarded recipients for exporting “soft skills” rather than just the usual exporters of tangible products. Driving exports and promoting economic growth in Durban and KwaZulu-Natal is the spark to ignite a growing export industry – and ultimately a stronger economy. The event and awards provide a platform and ideal showcase for emerging and established businesses exporting a wide range of products and services.
Transnet Port Terminals’ CE, Karl Socikwa, said that TPT’s participation in these awards for KZN is vital, considering the role that the terminal operator plays within the province. “The Port of Durban handles about 60 percent of the country’s imports and exports and is regarded as the busiest port in Sub-Saharan Africa. As the cog that ensures that the wheels of this country’s economy are continuously turning, it stands to reason that we continue to be involved with an event of this magnitude. Operation Phakisa, the government led initiative which will unlock the economic potential of South Africa’s maritime sector, also relies on the success of our country’s exporters in order to see the full benefits of the Blue Ocean Economy.” Socikwa added.
Durban Chamber CEO, Dumile Cele, recognized the vital role that exports play in the growth and development of the economy. “I am delighted that the awards have grown over the past 16 years, so much so that we were able to introduce 4 new categories this year. The Durban Chamber will continue to support and help grow our exporters through our Policy and Advocacy function, especially our Durban Port, Trade and Investment and Manufacturing Forums”.
This year’s category finalists and winners were the following:
Emerging Exporter: Sponsored by edtea
BBF Safety Group: Finalist
Small: Sponsored by SEDA
Saddler Belts & Leathercraft (Pty) Ltd: Winner
Medium: Sponsored by ECIC
Bata South Africa: Finalist
The awards continue to grow from strength to strength, KZN companies within the export industries are encouraged to apply for next year’s awards.
Re-known for his quality in the manufacture of Men’s leather, Sandals. SAFLEC member Tego Footwear graced the exhibition stands at MICAM, Italy.
The outcome was excellent, with a lot of interest. Sampling has begun with two very solid leads as per the exhibitor.
Well done Tego.!!!
Watch this space, as South African footwear makes its mark on world platforms.
Tralac News by Richard Humphries
( This article has been distributed and included into SAFLEC Newsflashes with the authority of Tralac)
The 6th Meeting of the Continental Task Force discusses fast-tracking the establishment of the CFTA (@AUTradeIndustry).
The UN Summit for Refugees and Migrants, in New York: conference website
Profiled conference resources:
South Africa: the minutes, documentation from last week’s parliamentary hearing on the Border Management Authority Bill.
African Union for Housing Finance: presentations from last week’s 32nd Annual Conference, on the theme ‘Housing and Africa’s growth agenda’.
Featured commentary, by Memory Dube: ‘Could emerging economies accelerate regional integration in Africa?’ (ICTSD)
It must be stressed from the onset that, to date, emerging economies’ influence on African regional integration has not been the result of targeted intervention. Instead, it consists of what observers can perceive by making connections and creating links between their trade, investment, and development aid interventions, where such interventions have regional implications. This, of course, is distinct from speeches or forum declarations where commitments to regional integration are made without specific allusion to any particular project. Emerging economies tend to have a bilateral, project-based approach to their engagement with African countries that, at cursory glance, cannot be said to speak to regional integration. Africa’s “traditional” partners (mainly EU countries), on the other hand, have long supported African regional integration efforts through trade-related development aid, with well-established technical support structures and capacity building initiatives. In considering the current role of emerging economies in regional integration, there are three avenues that can be considered: trade, investment, and development aid.
Financing the African Union: F10 Ministerial workshop (AU)
The two-day conference saw the Committee of Ten Finance Ministers (F10) convene to share ideas and best practices of implementing the decision. The F10 (representing the five African regions East, Southern, West, North and Central) met to discuss the draft terms of reference of the F10 which among others include; the review and evaluation of the annual budget of African Union before submission to the Assembly of Heads of State and Government of the African Union; propose implementation mechanisms of the Import Levy in particular; the collection of the funds, transfer of the collected funds and Peace Fund management arrangements. The F10 are also tasked with defining a roadmap for the implementation of the Decision, reviewing the status of the implementation of the 0.2% levy on all eligible imported goods into the continent to finance the African Union operational, program and peace support operations budgets starting from the year 2017 while ensuring the effective use of these resources.
The US-Africa Business Forum: Assessing progress and considering the stakes (Brookings)
Two years after the first US-Africa Leaders Summit and Business Forum brought together US and African CEOs in addition to heads of state and government, the US will convene a second US-Africa Business Forum on 21 September in New York City. Co-hosted by Bloomberg Philanthropies and the US Department of Commerce, the forum will emphasize opportunities for expanding US-Africa business, trade, and investment ties in key sectors positioned for growth, such as finance and capital investment, infrastructure, power and energy, agriculture, consumer goods, and information communication technology. While at the inaugural forum in 2014, nearly 150 CEOs from US and African companies announced more than $33bn in new deals – thus highlighting Africa as a strategic business and investment destination – this year, the forum promises to delve further into the question “How do you effectively do business in Africa?” It will also serve as an opportunity to assess how far the US has come in fulfilling its commitments from the last forum to the continent. [The analysts: Amy Copley, Amadou Sy]. Related Business Forum commentaries (Brookings): Witney Schneidman: Investing in solar energy, Robin Lewis, John Villasenor, Darrell M. West: ICT investment can drive economic growth, John McArthur: Expanding credit for small-scale irrigation
Women’s trousers top list of Kenyan exports to the US (Business Daily)
Official data shows that the United States ordered women trousers and shorts worth Sh4.2bn in the year to June, a 23.5% growth compared to Sh3.4bn in a similar period of 2015. The export of women’s wear has grown steadily over the last three years from Sh2.9bn in the first half of 2013, according to data from the Kenya National Bureau of Statistics. At Sh4.2bn women’s trousers accounted for nearly a third of the Sh13.4bn value of clothes shipped from Nairobi to Washington in the year to June, having grown by Sh1.5bn or 12.6%. [Kenya eyes more exports to US at Agoa summit]
East Africa: Illicit trade a security threat, region warned (New Times)
Pointing out the impact on security, Magdalene Munyao, Chairperson of the Anti-Illicit Trade Committee of Kenya Association of Manufacturers, said the crime is conducted by organised criminal groups, and was an opportunity for financing terrorism. Shedding light on the impact of illicit trade on investments, government revenues and social welfare, Munyao noted that it is a front for money laundering and has the potential to sabotage national economies. “KAM urges governments, the private sector and the consumers to work together in fighting this common enemy so that we may be able to; enhance the regional and national regulatory frameworks in order to protect EAC investments and consumers,” Munyao said. [Illegal trade ‘costing East Africa $500MN in tax’]
Tanzania changes tune on food exports to East Africa (The East African)
Tanzania is set to introduce new rules on food exports after it lifted a ban that had seen Uganda become the main source of grains in the region. The government said the lifting of the ban was prompted by forecast of surpluses. However, exporters will still require permits for rice and maize, and quotas will also be introduced to limit the export quantities. The Minister for Agriculture, Livestock and Fisheries, Charles Tizeba, said the new rules were meant to curb practices that jeopardise food security such as pre-harvest sale of produce. Mr Tizeba said traders were now free to export maize, sorghum, millet, rice, wheat, beans, cassava, potatoes and bananas potentially providing a respite for Rwandans who have over the past two months borne high food prices following a ban of exports there by Burundi.
Kenya to lose regional fuel market (Daily Nation)
The image of a visibly angry Energy Cabinet Secretary Charles Keter moving from one petrol station to another two weeks ago pouring adulterated fuel in Nakuru not only raised eyebrows but also questions why he was doing a job that would ordinarily be done by junior ministry officers. In the end, seven fuel companies had their licences cancelled. But Mr Keter has a bigger reason to worry. But on the regional front, all EAC countries apart from Uganda and Tanzania have since the beginning of the year reduced the amount of fuel they import from Kenya due to concerns over adulteration. So dire is the situation that Rwanda, which imports on average 60 metric tons of diesel through Kenya, completely stopped doing so in July opting for Tanzania which it claims has cleaner fuel and has a bigger axle load limit offering better economies of scale. Burundi, too, has since May not imported any diesel from Kenya.
Tanzania: Involve Parliament in EPAs, Ndugai advises government (The Citizen)
National Assembly Speaker Job Ndugai has asked Prime Minister Kassim Majaliwa to bring the Economic Partnership Agreements to Parliament so they can be debated before the government decides whether or not to sign them. In his remarks after the Premier had adjourned the august House on Friday, Mr Ndugai noted that MPs would have valuable input on the matter. His call comes only a few days after members of the business community also asked the government to involve them in deliberating the documents. They blamed the government for sidelining them in the last ten years during which it has been consulting with the EU through the EAC. [Honest Ngowi: ‘Postponing signing of EPAs: looking at issues of concern’ (The Citizen)]
South Africa: Busa rejects border agency due to cost (Business Day)
Business Unity SA has added its voice to growing opposition to a mooted border management authority and cautioned against such a move, citing the strain this would place on the fiscus when the country is faced with the prospect of having its sovereign credit rating downgraded. Busa pointed to the socioeconomic impact assessment study conducted on the formation of such an entity, which showed that setting up a border management authority would cost R15bn-R24bn, while capacitating the South African National Defence Force would come at a projected R2.5bn price tag. “The fiscal space for the establishment of the [authority] is simply not available.” [Government’s refugee plan is overkill]
South Africa: Review of system for import tariffs on key foods is nearing completion (Business Day)
The International Trade Administration Commission aims to complete its review of the system for determining import tariffs on wheat, maize and sugar before year-end, chief commissioner Siyabulela Tsengiwe said on Friday. Tshenge said in briefing Parliament’s agriculture portfolio committee that Economic Development Minister Ebrahim Patel had directed Itac to review the dollar-based domestic reference price and varied tariff formulas for the three commodities. “The reasons for these reviews are changed circumstances,” he said.
Zimbabwe: SI64 paying dividends (Sunday Mail)
“We are happy to note that there are some industries that are now reaching 100% capacity utilisation, with cooking oil industry pushing to between 90 and 100 percent from around 50% a few months ago,” said Industry and Commerce Deputy Minister Chiratidzo Mabuwa. “The yeast industry was almost closed but it’s now at 83% capacity utilisation while the biscuits manufacturing industry has gone up from 35% to around 75% because of SI64. “Some big companies were about to fold because we were importing products that they were producing. We corrected that and gave them an opportunity to produce those goods,” she said. The deputy minister dismissed suggestions that SI64 pushed the prices of basic goods upwards.
Trade in agricultural commodities is the next frontier for UNCTAD’s ASYCUDA program, which reduces bureaucracy, corruption, and trade delays in as many as 93 developing countries by automating customs procedures. The first country to pilot ASYCER – which stands for Automated System for Certification – was Ethiopia. “Flowers are especially perishable, and cutting customs clearance times can bring significant benefits to farmers,” said Fabrice Millet, Chief of the ASYCUDA program at UNCTAD’s Division on technology and logistics. ASYCUDA is UNCTAD’s largest technical assistance program.
The fact that Argentina and Brazil do not coordinate their most actively changing trade policies of antidumping and safeguards has other important implications. Each can and does continue to respond to political-economic shocks independently. Yet, this also makes them unable to take full advantage of the benefits of a customs union arrangement. In particular, the inability to credibly coordinate joint policy changes means they have been unable to amass increased bargaining power vis-à-vis the rest of the world – that might have otherwise arisen through increases in their (joint) import market power – to better negotiate collectively. [The analysts: Chad Bown, Patricia Tovar]
Released in 2015, a few provisions in the model treaty have drawn attention from trade partners. A greater look at this treaty, which will shape investor dispute battles in the future, is clearly necessary. There have been concerns regarding India’s model treaty and its seemingly protectionist approach that has come to inform this process. Recent reverses including the verdict in the Devas dispute, are also strengthening positions of both investors and the government. India has so far signed BITs with 83 different countries. According to UNCTAD, which keeps an account of the number of disputes, a total of 17 known investor-state dispute settlement cases were filed against India by the end of 2015. Of these seven are pending, nine were settled and India lost one case (excluding the recent Devas ruling). India was one of the top 15 most frequent respondent states in 2015 (sued most often). [The analyst: Priti Patnaik] [India’s appeal against WTO solar ruling rejected]
Today’s Quick Links:
Cashaa, the Uber of money transfers, revolutionizes cash remittances to Africa (The Coin Telegraph)
Ghana’s horticulture and floriculture potentials showcased (GhanaWeb)
Collins Odote: ‘We need more objective debate on the SGR’ (Business Daily)
China sets up council to promote investments with India (Indian Express)
Egypt sets up committee to resolve agricultural trade dispute with Russia (The Independent)
NZ dairy companies press WTO over Canadian subsidies
After months of negotiation for Footwear Leather, handbags and belts to be included into DTI ITI’s, by both Executive Director of SAFLEC, Nerisha Jairaj and Chief Director of Textiles, Footwear and Leather, Abisha Tembo at the Department of Trade Industry, the first of our accepted Footwear companies, (whom applied for the ITI), Re-union components /Angel Footwear, had the pleasure of being included into Tanzania OSM. Africa is our main focus area, without a doubt, and as a first step into some areas, we see benefit in the ITI’s and National Pavilions as stepping stones into the markets. Upcoming platforms are Angola, DRC, Zimbabwe and Egypt. The Tanzania ITI, OSM, trade platform consisted of a multi-sectoral range of companies and according to Mathew Hansen, was a marvellous learning experience. Mathew said he has made good contacts into this predominately second hand footwear market and was confident that he would make positive in-roads into this area with time.
SAFLEC, has embarked on ensuring that we are able to provide as many trade platforms as possible for our members. As an export council our sole mandate is to create export platforms for the industry, educate and assist you with your exports. We arrange SASS Pavilions, Emia Individual, and this year have ventured into ITI’s OSM’s and National Pavilions with the DTI, amongst the many joint platforms we have negotiated, with the likes of the Luggage, handbags and general goods Association, Ostrich Chamber, TIKZN, Wesgro, Durban Chamber, Capetown Fashion Council, KZN Fashion Council and the South African Fashion council.
Meanwhile……..On the other end of the world SAFLEC Member, Hamethorp Handbags and Footwear, made SAFLEC and SA proud at Show and Order Berlin, Germany , another SAFLEC arranged joint platform with the Capetown Fashion Council. After a vigorous selection process, she was accepted as an exhibitor. With her unique sense of style and ethnic African designed Fabric Hamethorp is set to make her mark in the Global arena. As per the Exhibition agent for Show and Order Berlin, SA begun writing orders from the first hour the show opened.
SAFLEC encourages you to participate in platforms provided, to get yourself out there. These experiences, assist in research and development and most importantly, allows you to make contacts with possible buyers. We are realistic enough to know and understand that exports cannot grow over night and that these processes normally take a few visits to entrench yourself into the platform markets, build relationships and trust………. But make the start and grow with us. We at SAFLEC are passionate about assisting you.
WATCH THIS SPACE
SAFLEC……working in the best interests of our members….Taking South African Footwear and Leather products to the world. Become a member now by emailing …..email@example.com