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S Africa needs to up its export game, leverage Africa’s industrialisation efforts – Davies

S Africa needs to up its export game, leverage Africa’s industrialisation efforts – Davies

19th June 2015

By: Natasha Odendaal
Creamer Media Senior Deputy Editor

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South Africa needs to leap at the emerging opportunity to secure its future as a producer and exporter of value-added goods as Africa industrialises, Trade and Industry Minister Dr Rob Davies said on Friday.

With the continent drawing the “same conclusion” as South Africa that the future was in value-added exports, the nation could leverage Africa’s plans and move up the value chain, add value to its products, beneficiate and re-enter the global market as a producer and exporter.

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However, South Africa, which was the most industrialised country on the continent, needed to “find its place” on a continent that now posed an export challenge to the Southern African nation, Davies told delegates at the Team Export South Africa conference, in Pretoria.

The continent’s industrialisation ambitions meant that South Africa would have fewer and fewer opportunities to export value-added goods and products across Africa amid competition from other African countries, the increasing imposition of export limitations and other countries eyeing South Africa as an export destination.

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“We need to find [the position] that benefits [most] from the industrialisation under way across the continent … to move up the value chain as other African countries industrialise,” he said, citing, besides others, the opportunity to supply Nigeria with assembly kits as the West African country established a motor assembly industry.

His comments emerged as the Department of Trade and Industry endorsed and signed a memorandum of agreement (MoU) with the Limpopo and Northern Cape Economic Development departments to accelerate the implementation of the National Exporter Development Programme (NEDP).

The MoU aimed to ensure a higher level of collaboration, coordination and synchronisation of effort and cooperation between the provinces and national government to avoid duplication and creating confusion among international investors as South Africa grew the diversity and volume of its exports.

The NEDP, a flagship programme of Trade and Investment South Africa to revitalise exporter development, enabled existing and emerging exporters at different stages of development to expand the exporter base in South Africa and grow exports within particular product lines.

The programme provided a platform for attracting new exporters; ensured that existing exporters increased their exports through growth in their existing markets, venturing to new markets and developing new products and services; and ensured that exporters continued to export profitably in a tough economic environment.

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