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NATIONAL EXPORT STRATEGY:

DIVERSIFICATION

Export Promotion and Marketing Chief Directorate

Department of International Relations and Co-Operation (DIRCO)

Economic Diplomacy Training

June 2014

PRESENTATION OVERVIEW

1. TISA Mandate

2. National Export Strategy

3. Global Economic Context

4. South Africa’s Export Performance

5. The Opportunity

6. Diversification Strategy

– Product and Sector Perspective

– Market Perspective

– Action Plan 2014/15

2 Trade and Investment South Africa – a division of the dti

TISA MANDATE


• Increase South Africa’s capability and capacity to promote exports

of products and services into targeted high growth markets

• Increase and retain the level of direct foreign and domestic

investment flows as well as promoting outward investment into

Africa

• Contribute towards the effectiveness of the dti, encouraging

strategic alignment, policy coherence and leadership

• Management of the Department’s network of foreign offices

TISA’S EXPORT BUSINESS STREAMS


Export Development and Support

Implementation of two critical pillars of the

National Export Strategy: 1) the National

Exporter Development Programme

(NEDP) and 2) the National Institutional

Framework.

• Expand the exporter base of the country

• Focus on enhancing the export culture,

• Provide assistance

• Offer extensive capacity building

• Creation of opportunities and

• Serve as an industry interface for the

department

South African companies are assisted at

all levels to ensure retention, expansion

and diversification by company, product

and market.

Export Marketing and Promotion

Implementation of the National Export

Strategy which is built on the following critical

pillars:

• Improving the export enabling

environment

• Strengthening the export institutional

framework

• Increasing the demand for South African

goods and services through

diversification

• Enhancing the Country Value-Proposition

and Sector Branding

• Broadening the Export base as outlined

in the National Exporter Development

Programme (NEDP)

• Enhancing Export incentives and Trade

financing instruments

NATIONAL EXPORT STRATEGY (NES)

The NES has a long term vision of improving South Africa’s export performance and

recommends a basket of macro and micro interventions aimed at enhancing the export enabling

environment and improving the competitiveness of firms and sectors.


Source: Quantec, 2013

CURRENT EXPORT LANDSCAPE


Top 10 Export Markets - 2012

Country

% of

Total Exports

2008

% of

Total Exports

2012

Rank

in

2008

Rank

in

2012

Change

in

Rank

China 5.9% 13.0% 5 1 4

United States 11.2% 9.9% 2 2 0

Japan 11.2% 7.1% 1 3 -2

Germany 7.8% 6.1% 3 4 -1

India 3.1% 4.8% 7 5 2

United Kingdom 6.7% 4.3% 4 6 -2

Netherlands 4.6% 4.0% 6 7 -1

Zambia 2.6% 3.2% 10 8 2

Zimbabwe 2.3% 3.0% 12 9 3

Mozambique 2.2% 3.0% 13 10 3

17%

22%

10%

36%

1%

3%

12%

20% 19%

19%

27%

2%

3%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Africa Asia (excl.China, India)

Brics Europe (excl.Russia)

Latin America Middle East North America

2008 2012

Source: Quantec, 2013

CURRENT EXPORT LANDSCAPE


Exports per Region - 2012

OPPORTUNITIES


Regional industrial integration and new export markets

• Sustained and concerted regional growth is arguably the biggest stimulus to long-term growth in

South Africa.

• A number of on going and scaled-up interventions are in the pipeline. These include: planning

cross-border infrastructure; effective articulation of up- and downstream linkages in resource

exploitation; and the realisation of massive construction opportunities.

•

• Continuing rapid progress in the regional integration drive will, however, require stronger

identification of complementarities and cross-border value chains; the strengthening of existing

export market research; market and product identification; and an export promotion drive built

around strategic domestic manufacturers.

BRICS

• South Africa’s participation in the BRICS provides important opportunities to build its domestic

manufacturing base, enhance value-added exports, promote technology sharing, support small

business development and expand trade and investment opportunities.

TARGET SECTORS


Advanced

Manufacturing

Clothing, Textiles,

Leather & Footwear

Electro-technical (incl.

Software & White

Goods)

Metal Fabrication,

Capital & Rail Transport

Equipment

Plastics,

Pharmaceuticals,

Chemicals and

Cosmetics

Services

Aerospace &

Defence

Agro-processing (incl.

Food/Beverages &

Furniture)

Boatbuilding &

associated services

Automotives

Cultural and Creative

Industries

Green Industries

• Aligned with sectors already prioritised in the basket of broader industrialisation and

growth initiatives undertaken by the government

• The sectors, include a mix of high, medium and low value addition activities.

• The sectors also have a strong domestic firm base of both large and small producers.

MARKET SELECTION CRITERIA


These markets are then prioritized using the following criteria:

• The extent of competition present from countries with a similar basket of

products

• The long term market potential of the country concerned

• The scope and nature of market access problems in developing that potential

• The country’s importance, relative to others, as a source of investment

• The country’s development strategy and its fit with South Africa’s

• The degree of fit between the country’s multilateral strategy and South Africa’s

• The country’s geopolitical strategy, with respect to its region and the world, and

whether this coheres with South Africa’s

• The interest of the South African private sector in that market

• South Africa’s ability to compete effectively in this market

The findings point to maintaining exports to traditional trading partners, while looking

at emerging markets; in particular looking at other African countries as areas for

expansion in trade.

OPPORTUNITIES BY REGION


Agro-Processing

Automotive Components

Products under AGOA

Chemicals

Machinery and Equipment

Agro-processing

Automotives

Energy

Capital and Mining

Infrastructure Services

Engineering Services

Agro-Processing

Cosmetics


Metal Processing

Electronics

Composites Processing

Rubber/ Plastics

Industrial Equipment

Agriculture Agro-processing Automotives Construction Cosmetics Energy Financial Services Infrastructure ICT and Telecommunication Mining and Capital Equipment Pharmaceutical Oil and Gas

Agriculture Agro-processing Automotives Construction Cosmetics Energy Financial Services Infrastructure ICT and Telecommunication Mining and Capital Equipment Pharmaceutical Oil and Gas

Agro-Processing


Machinery

Defence Equipment

Fabricated Steel

Jewellery

Cosmetics

Automotive

Mining

Metals & Minerals

Capital Equipment

Engineering

ICT

Electro-technical

OVERVIEW TARGET MARKETS


SUB-SAHARAN

AFRICA

NORTH

AFRICA

ASIA LATIN

AMERICA

NORTH

AMERICA

MIDDLE EAST EUROPE

1. Angola

2. Cameroon

3. DRC

4. Ethiopia

5. Ghana

6. Kenya

7. Mozambique

8. Nigeria

9. Senegal

10. Tanzania

11. Uganda

12. Zambia

13. Zimbabwe

1. Algeria

2. Egypt

3. Libya

4. Sudan

5. Tunisia

1. China

2. Hong Kong

3. India

4. Indonesia

5. Japan

6. South

Korea

7. Malaysia

8. Philippines

9. Singapore

10. Thailand

11. Vietnam

1. Argentina

2. Brazil

3. Chile

4. Peru

5. Colombia

6. Venezuela

7. Uruguay

1. Canada

2. Mexico

3. USA

• Cuba

1. Iraq

2. Iran

3. Kuwait

4. Oman

5. Qatar

6. Saudi

Arabia

7. UAE

1. EU27

2. Russia

3. Turkey

DIVERSIFICATION ACTION PLAN 2014/15


ACTION PLAN


Create Visibility and Market Access for South

African Exporters

• The diversification effort will be supported by using export

promotion mechanisms such as National Pavilions, Trade

Missions, Investment and Trade Initiatives, Special Projects and

unconventional interventions to create visibility and market

access for South African exporters of goods and services.

• Sectors targeted linked to IPAP priorities

• Inputs from Foreign Office, dti sector specialist, Industry

Associations, Export Councils, Chambers of Commerce and

Provincial Trade and Promotion Agencies

• Finalised lists based on inputs and national export strategy


Performance Indicator Targets 2014/2015

Value of export sales facilitated R3 billion

Number of National Pavilions

managed

29 National Pavilions

Number of Trade Missions organized 45 Trade Missions

Number of Investment and Trade Initiatives &

Special Projects organized

5 Investment and Trade Initiatives

2 special projects organized

(SA Expos in China)

Number of companies financially assisted through

the EMIA Group Offerings Scheme

1025

companies

490 NP

350 GM

185 ITI / Special Project

DIVERSIFICATION TARGETS

Advice on

Incentives &

Financial Support

Trade

Opportunity

Matching

Export

Awareness

Workshops

Export Advice &

Information

Exporter

Development

Programmes

Export Council

Support / Sector

Specific

Programmes

EXPORT DEVELOPMENT SERVICES IN-MARKET ASSISTANCE

Market Research

& Intelligence

Identifying

Potential

Business

Partners

Co-ordinating

Visits to Markets

Assessment of

Prospects

Export Promotion

Projects

Market Entry

Assistance

EXPORT PROMOTION SERVICES

National

Pavilions

Outward Selling

Trade Missions

Inward Buying

Trade Missions

International

Trade Initiatives

Primary Market

Research

Assistance

Individual

Assistance

Programmes

TISAS INTEGRATED EXPORT SERVICES



Country

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

Mar-15

Angola

FILDA

Multi-Sectoral

Cameroon

OSM

Multi-Sectoral

(tbc)

DRC

ITI

Multi-Sectoral

Ethiopia

OSM

Multi-Sectoral

Ghana

OSM

Multi-Sectoral

(tbc)

Ghana

International

Trade Fair 2015

Multi-Sectoral

Kenya

OSM

Multi-Sectoral

Mozambique

FACIM

Multi-Sectoral

Nigeria

OSM

Multi-Sectoral

Sudan

IBM

Multi-Sectoral

OSM

Multi-Sectoral

SUB-SAHARAN AFRICA


SUB-SAHARAN AFRICA

Country


Mar-15

Tanzania

Dar Es

Salaam

International

Trade Fair

2014

Multi-

Sectoral

OSM

Multi-

Sectoral

Uganda

OSM

Multi-

Sectoral

Zambia

ZAITF

Multi-

Sectoral

Zimbabwe

ITI

Multi-Sectoral


NORTH AFRICA

Country


Mar-15

Algeria

OSM

Multi-

Sectoral

Tunisia

OSM

Multi-

Sectoral


ASIA

Country


Mar-15

Hong Kong

Hong Kong

International

Jewellery

Indonesia

OSM

Agro-processing

Japan

Foodex

Japan

Singapore

OSM

Agro-processing

South

Korea

Korea

International

Boat Show

(KIBS)

Thailand

OSM

Agro-processing

Capital

Equipment

Taiwan

OSM

Agro-processing

Capital

Equipment


ASIA

Country


Mar-15

Vietnam

OSM

Agro-

processing

Capital

Equipment

China

China

Expos*

India

India

International

Trade Fair

(IITF)

ITI

Multi-

Sectoral


EUROPE

Country


Mar-15

France

IBM

Electro-

technical

Sial

Paris

Midest

Germany

IBM

Electro-

technical

Auto Mechanika

Germany

Fruit Logistica

Berlin

Netherlands

Turkey

OSM

Multi-Sectoral

Poland

OSM

Multi-

Sectoral

(TBC)

Russia

IBM

Electro-

technical

World Food

Moscow

ITI

Multi-Sectoral

IBM

Electra Mining


LATIN AMERICA

Country


Mar-15

Brazil

ITI

Multi-

Sectoral

Chile

OSM

Multi-

Sectoral

IBM

Electra

Mining

Peru

OSM

Multi-

Sectoral


MIDDLE EAST

Country


Mar-15

Iran

OSM

Multi-Sectoral

Oman

IBM

SA

Auto Week

Qatar

OSM

Multi-

Sectoral

IBM

SA

Auto Week

Saudi Arabia

IBM

SA

Auto Week

UAE

Auto

Mechanika

Middle East

IBM

SA

Auto Week

Gulfood

International

Defence

Exhibition &

Conference

(IDEX)


NORTH AMERICA

Country


Mar-15

Canada

IBM

Electra

Mining

OSM

Mining &

Capital

Equipmen

t

Cuba

Havana

Trade Fair

(FIHAV)

Multi-

Sectoral

Mexico

OSM

Multi-

Sectoral

USA

IBM

Electra Mining

OSM

World Bank

(Infrastructur

e)

IBM

Africa

Aerospace &

Defence


SOUTH AFRICA (IN-COUNTRY EVENTS)

Country


Mar-15

South

Africa

Electra

Mining South

African Auto

Week

Mining

Indaba Africa

Aerospace &

Defence


THANK YOU

Jardine Omar

Deputy Director: Export Promotion (Services)

[email protected]

mailto:[email protected]

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