Trade & Investment KwaZulu-Natal Export Development and Promotion for the Footwear and Leather Industry 23rd NOVEMBER 2021
PRESENTATION OVERVIEW •
EXPORT DEVELOPMENT & PROMOTION SUPPORT
•
KZN’S AFRICA EXPORT STRATEGY
•
OPPORTUNITIES
Trade & Investment KwaZulu-Natal, The Official Trade and Investment Promotion Agency of the KwaZulu-Natal Provincial Government and Home of the
EXPORT DEVELOPMENT & PROMOTION
EXPORT DEVELOPMENT • Export Related Information o Trade data o Fact Sheets • Export Registration – consultation and online support • Emerging Export Development – Awareness Sessions • The Export Graduation Programme o Development of Small and Medium Companies o The Intermediary Export Development Programme o Enhance Export Development for previously Export Graduates
EXPORT DEVELOPMENT • Advanced Export Workshops and Master Classes o INCOTERMS 2020, AfCFTA, AGOA, BREXIT, Trade Wars, Challenges to overcome in Exporting, etc.) • Local and International Export Mentorship Programmes o KZN Export Competitiveness Programme implemented by Productivity SA o TPT Kaizen Programme o Transactional Mentorship o Dutch PUM Program o German SES Program o Swiss SIPPO Program – Export Marketing Plan • Advanced Export Consultations o DSM Report Consultations , Site Visits, Incentives Facilitation o Technical Support (TAF)
EXPORT PROMOTION • Market Development Workshops and Briefing Sessions • Trade Lead Distribution • Export Promotion Consultations • Participation and coordination of KZN Delegates on OSM’s, ITI’s, Local and International Exhibitions • Hosting of Inward Buying Missions • Coordination of Export Week, Conferences, etc. • Facilitation of access to Export Incentives (TIKZN FAS, DTIC’s EMIA, etc) • Registration on the KZN Export Information Portal
KZN EXPORT INFORMATION PORTAL www.exportkzn.co.za
EXPORT 101 : Guide on How to Export
KZN’S AFRICA EXPORT STRATEGY
GROWING KWAZULU-NATAL TOGETHER
ELEMENT OF THE AFRICA EXPORT STRATEGY • ECONOMIC AND POLITICAL RISK • EXISTING TRADE FLOWS • POTENTIAL PRODUCTS TO BE TRADED • COMPARATIVE ADVANTAGES • DESCISON SUPPORT MODEL • TOP MARKETS/PRODUCTS TO FOCUS Download: www.exportkzn.co.za
KZN TOP 10 EXPORTS AFRICA MARKETS (Billions)
`` Angola
R1.6
Namibia
R6.3
Botswana
R5.8 Lesotho
R1.9
Total KZN Exports to Africa (10,87%) = R37,39 Billion Total SA Exports to Africa = R343,99 Billion GDP for SA = R368,3 Billion USD; GDP for KZN = 16% of SA
Zambia
R3.3
Tanzania
R1.2
Kenya
R 1.2
Mozambique
R2.8
Swaziland
R3.1
Zimbabwe
R2.3
COMPETITIVE ADVANTAGES FOR KZN EXPORTERS Sector Footwear Forestry Paper and paper products Wearing apparel Non-ferrous metal products Textiles Agriculture Plastic products Wood and wood products Leather and leather products Basic chemicals Food Furniture Transport and storage Water Rubber products Other chemical products Motor vehicles, parts and accessories
Districts of Importance UThukela, uMgungundlovu, Ugu Harry Gwala, Umzinyathi, uMgungundlovu, Umkhanyakude iLembe, UThukela, King Cetshwayo iLembe, Amajuba, eThekwini King Cetshwayo, uMgungundlovu, UThukela, iLembe, eThekwini Harry Gwala, iLembe, Umzinyathi iLembe, eThekwini Harry Gwala, Umzinyathi, uMgungundlovu iLembe King Cetshwayo, eThekwini Ugu, UThukela, iLembe UThukela, iLembe King Cetshwayo, eThekwini uMgungundlovu, UThukela, Umkhanyakude uMgungundlovu, UThukela eThekwini, Amajuba iLembe, eThekwini
Printing, recorded media Structural metal products Construction
eThekwini, Amajuba King Cetshwayo, iLembe, eThekwini, uMgungundlovu iLembe, Ugu, uThukela, Umkhanyakude, King Cetshwayo, Harry Gwala
Education (private) Other manufacturing groups Health and social work (private)
Umzinyathi, Zululand, Umkhanyakude, Harry Gwala eThekwini, Amajuba Umkhanyakude
Other fabricated metal products
Umzinyathi, King Cetshwayo, iLembe, eThekwini
IDENTIFICATION OF REALISTIC EXPORT OPPORTUNITIES
PRIORITY COUNTRIES OF FOCUS
Country
Kenya Uganda Ghana Angola Mauritius Madagascar Guinea Seychelles Morocco Zimbabwe Senegal Congo Burkina Faso Mozambique Djibouti Benin Algeria Ivory Coast Gabon Cape Verde
KZN share of ZAF Exports [B] to Target Market (Mn) [USD]:
[A]Total Realistic Export Potential to Target Market(s) (Mn) [USD]:
3.78 7.06 2.30 3.34 1.21 1.01 0.47 0.46 1.76 0.74 0.32 0.32 0.11 0.66 0.22 0.10 0.16 0.02 0.02 0.00
22.36 16.45 14.07 12.22 6.03 3.73 2.85 2.09 2.06 1.58 1.37 1.32 1.27 1.25 1.24 1.02 0.43 0.35 0.06 0.01
[A1] Halal reduced potential to Target Market(s)(Mn) [USD]:
21.68 16.20 13.42 12.22 5.42 3.72 2.85 2.09 1.86 1.58 1.37 1.32 1.16 1.25 0.07 1.02 0.43 0.35 0.06 0.01
[B]Total Exports from ZAF to Target Market(s) (Mn) [USD]:
15.90 19.75 7.92 12.04 4.63 4.03 1.53 1.59 2.15 1.35 1.30 0.87 0.74 1.25 0.77 0.52 0.25 0.17 0.05 0.00
[G]Target Market(s)Tota l Imports (Mn) [USD]:
161.51 124.46 110.90 94.55 48.37 28.29 20.56 16.40 14.83 10.92 12.00 9.13 10.84 8.96 8.80 8.00 3.25 2.80 0.41 0.04
TARGET AFRICAN MARKETS FOR KZN: 1. Algeria (TDO)
10. Burkina Faso (TDO)
19. Rwanda (TDO)
2. Morocco (TDO)
11. Botswana (TEM19; TDO)
20. Djibouti (TDO)
3. Ghana (TDO)
12. Nigeria (TDO)
21. Kenya (TEM19)
4. Tunisia (TDO)
13. Namibia (TEM19; TDO)
22. Tanzania (TEM19)
5. Senegal (TDO)
14. Seychelles (TDO)
23. Angola (TEM19)
6. Madagascar (TDO)
15. eSwatini (TDO; TEM19)
24. Zimbabwe (TEM19)
7. Mauritius (TDO)
16. Uganda (TDO)
25. Zambia (TEM19)
8. Ivory Coast (TDO)
17. Cape Verde (TDO)
26. Mozambique (TEM19
9. Benin (TDO)
18. Gabon (TDO)
27. Lesotho (TEM19)
Key: TDO=Trade DSM Outcome; TEM19 = Top Export Market 2019.
EXPORT PRODUCTS FROM KZN (+3500 products) • Automotive parts and components • Sugar, prepared foodstuffs and beverages • Chemicals and Plastics • Furniture, arts & craft • Pulp & paper • Engineering & Consultancy services • Electronic, communication devices • Leisure boats, transport and logistics equipment • Machinery • Jewelry, base metals • Clothing, textile, body armor
TARGET PRODUCTRS FOR AFRICAN MARKETS FROM KZN Opportunity (s)(Mn) Current Sales (Mn) Demand (Mn) Product Tariff book product (HS 6 digit) [ZAR]: [ZAR]: [ZAR]: Count: 173 Count: 173 5 911.70 9 438.95 48 853.44 Vegetable oils: soya-bean oil and its fractions, crude, HS150710 whether or not degummed, not chemically modified 2 086.71 184.52 14 315.10 Sugars: sucrose, chemically pure, in solid form, not HS170199 containing added flavouring or colouring matter 862.01 1 625.83 7 579.06 Aluminium: casks, drums, cans, boxes and the like for any HS761290 material (not compressed or liquefied gas), 227.61 373.87 2 050.32 Sauces and preparations therefor: mixed condiments and HS210390 mixed seasonings 234.64 198.57 1 771.39 HS480256 HS340120 HS481910 HS151219 HS730840 HS340290 HS210410 HS721621 HS721631 HS090230 HS841830 HS380899 HS760110 HS440310 HS340219 HS640590
Uncoated paper and paperboard (not 4801 or 4803): printing, writing or graphic, Soap: in forms n.e.c. in item no. 3401.11 Paper and paperboard: cartons, boxes and cases, of corrugated paper or paperboard Vegetable oils: sunflower seed or safflower oil Iron or steel Washing and cleaning preparations: Soups and broths and preparations therefor Iron or non-alloy steel: L sections, hot-rolled, hot-drawn or extruded, of a height of less than 80mm Iron or non-alloy steel Tea, black: Freezers: of the chest type, not exceeding 800l capacity Rodenticides and other similar Aluminium: unwrought, (not alloyed) Wood Organic surface-active agents Footwear: n.e.c. in chapter 64
206.69 164.17
171.81 238.97
1 498.48 1 259.89
143.23 33.41 134.61 62.57 117.49
235.47 889.49 101.24 388.59 18.82
1 222.75 1 112.99 1 054.71 862.30 736.06
107.13 54.69 46.39 49.85 34.41 55.56 29.34 23.95 30.33
25.31 165.71 156.48 115.08 189.31 55.67 236.77 224.82 142.06
671.78 498.19 442.63 426.46 424.12 412.30 405.29 395.38 348.37
INTRA-AFRICA TRADE INITIATIVES : 1. Market Development Initiative with Trade Commissioners, Investment Promotion Agencies, Exports Councils, etc. 2. Trade regulation and compliance with Intertek, BV, SGS 3. Online/Physical Trade Mission (Conference and B2B arranges for promotion of intra Africa trade) 4. Follow up with inbound and outbound missions to enhance market penetration within 6 months of prior engagements. 5. B2Bs arranged for promotion of Intra Africa Trade at least once per annum per regional grouping. 6. Hosting of delegates from Key African Markets at IATF 2021, KZN Investment and Trade Conference 2022, etc.
TRADE AND INVESTMENT - TECHNICAL VISITS • A series of technical visits are proposed to the following countries in 2021/2022: Ghana, Egypt, Tunisia, Nigeria, Algeria, Kenya, and Tanzania • The purpose of this activities would be as follows: Meet with counterparts in trade and investment and key stakeholder in these countries including Chamber of Commerce. Instill investor confidence and promote KZN as a viable investment destination for African Investors. Discuss trade and markets access opportunities and platforms on the back of the AfCFTA and KZN’s Africa Export Strategy. Promote participation in the IATF 2021, KZN’s Trade & Investment Conference and World Halal Day 2022, etc.
ALIGNED TRADE EVENTS FOR AFRICA • SAITEX 2021 Aug 2021 • Africa Big 7 Aug 2021 • Expo 2020 Dubai (October 2021 to March 2022) – Promote Trade in Africa and Made in Africa – Investment focused events and Sector Webinars • Trade & Investment Indaba + World Halal Day (March 2022) – Hybrid Conference at the Durban ICC – Investment Focused Day – Trade Focused Day – B2b Engagements – Exhibition – 200 online + 50 physical • Intra Africa Trade Fair (IATF) SA (15 to 21 November 2021) • Seychelles Fashion Week (26 to 29 Nov-21) • Automechanika (15 to 22 Mar 2022)
OPPORTUNITIES
GROWING KWAZULU-NATAL TOGETHER
EXHIBITIONS : IATF 2021 www.intrafricantradefair.com
IATF INWARD DELEGATIONS SUPPORTED BY TIKZN • Over 450 delegates hosted during side events facilitated by TIKZN . • Monday 15th November – Country Dinner hosted by Premier – Greyville Race Course • Tuesday 16th November – Investment RoundTable – Durban ICC – close to 100 delegates supported the country day event which was chaired by TIKZN CEO Neville Matjie • Wednesday 17th November – Dinner hosted for Egyptian Delegation at Booth Hotels – 18h00 (TIKZN, GGDA and Nissan South Africa) – Over 60 Egyptian Companies participated with a total of 120 participants at the event. Present were HE Ambassador Mashimbye, Hon MEC Ravi Pillay, Hon MEC Parks Tau (Gauteng) and the CEO of Nissan Africa Mr Mike Whitfield • Thursday 18th November – Francophone Investment Round-Table Session for delegates from Ivory Coast – also present were delegates from the Russian Federation, Niger, and Namibia – 09h00 – 13h00 Capital Pearls Hotel – Over 70 businesses participated in the event • Thursday 18th November – Agric business Forum – 20 companies in attendance and there was an opportunity for the Francophone companies to also engage with this group. • Friday 19th November – Ghana Investment Forum – 150 attendees where KZN provided overview of trade and investment opportunities in the region. • Friday 19th November – Site visit to Kingsgate Clothing and DTP with 23 foreign delegates in attendance. • Monday 22nd November – B2B session with Shea Butter Alliance with over 60 attendees.
COMPANIES AIDED TO EXHIBIT • 10 x Creative Industry Clients (Funded through our relationship with DSBD) • 7 x SMMES funded through our relationship with Transnet • 23 X Small, Medium and Large Companies funded by One Stop Shop and Export Development Unit • 12 x SMME funded by DTIC • 2 X Corporate companies funded through our relationship with Afriexim Bank, Foscor, Nyanza Light Metals. • Bell Equipment, SAPPI and Toyota were also exhibitors on the KZN pavilion. • Total companies aided – 54
SUCCESSES In excess of R300m in trade negotiated Top companies are: Chem Energy, Gem Water Solution and Coconathi Pty Top three SMMEs: Sluvin Designs, Minnies Foods and Gugu Bhengu Mobile Boutique (Crafts)
Deals presented to Afreximbank in the Deal Room
KZN managed to submit a total of 8 projects to the deal room with investment value of R78b and potential job creation of 80 000. These will form part of the Afreximbank for funding consideration
The projects are as follows: 1. Durban Film City – R7.5b with 430 jobs (direct) 2000 (indirect) 2. Fenningley Eco Estate – R45b with 27700 jobs 3. Colenso Energy – R6.3b with 19000 jobs 4. Xylomed Pharma – R3.5b with 3500 jobs 5. KSRA LVP – R200m with 1000 jobs 6. Fenzhor Theme park and hotel – R1.5b 7. 12 Fountains Smart City – R5b 8. Ncadu Eco Resort – R450 MOU signed with GIT Zone for market access support into Africa.
SUCCESSES
Trade & Investment KwaZulu-Natal won two prestigious Awards at the IATF 2021:
The Most Extraordinary Experience Stand: Variety of Companies from Small to Large demonstrating cohesion, knowledge, skill and appetite to do business in the African Continent
The Best Agency Partner to Gate-Africa For Francophone Business Development: Recognised for outstanding commitment in ensuring excellence and business partnership creation between KwaZulu-Natal and the Francophone Countries
EXHIBITIONS : EXPO 2020 DUBAI www.expo2020dubai.com
EXHIBITIONS: Trade & Investment Indaba 2022 + WHD www.tikzn.co.za
CONCLUDING REMARKS • Encourage Intra-Africa Trade – Sustainable trade – Bilateral trade – Integration of value chains • Beneficiation of raw material and semi-processed products – Value addition on materials and resources – Localisation of manufactured products for further export into Africa – Investment in R&D and Technology • Enhance Competitiveness (Lean Manufacturing) – Labour productivity – Factory efficiency – Systems implementation
CONCLUDING REMARKS • Update Details on Export Database (POPIA) • Register on the KZN Export Information Portal • One-on-one Consultation and Site Visitation – Understand product/offerings – Understand capabilities/capacity/resources to export – Aspiration and market strategy/plan
• Action Plan for Export Development and Market Access – – – –
Training and Mentorship Export Competitiveness Enhancement Technical Support Market Access Support Kenya – Feb 2022 Tanzania – Feb 2022
• DSM - Market Analysis • KZN Export Competitiveness Programme
jayshree@tikzn.co.za cmoodley@tikzn.co.za