NATIONAL EXPORT STRATEGY: DIVERSIFICATION

Transcription

1 Department of International Relations and Co-Operation (DIRCO) Economic Diplomacy Training June 2014 NATIONAL EXPORT STRATEGY: DIVERSIFICATION Export Promotion and Marketing Chief Directorate

2 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

3 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 3

4 TISA S EXPORT BUSINESS STREAMS 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 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. 4

5 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. 5

6 Top 10 Export Markets CURRENT EXPORT LANDSCAPE Country % of Total Exports 2008 % of Total Exports 2012 Rank in 2008 Rank in 2012 Change in Rank China 5.9% 13.0% United States 11.2% 9.9% Japan 11.2% 7.1% Germany 7.8% 6.1% India 3.1% 4.8% United Kingdom 6.7% 4.3% Netherlands 4.6% 4.0% Zambia 2.6% 3.2% Zimbabwe 2.3% 3.0% Mozambique 2.2% 3.0% Source: Quantec,

7 CURRENT EXPORT LANDSCAPE 40% 35% Exports per Region % % 27% 25% 22% 20% 20% 19% 19% 17% 15% 10% 10% 12% 10% 5% 0% Africa Asia (excl. China, India) Brics Europe (excl. Russia) 3% 3% 2% 1% Latin America Middle East North America Source: Quantec,

8 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. 8

9 TARGET SECTORS 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. Advanced Manufacturing Boatbuilding & associated services Electro-technical (incl. Software & White Goods) Aerospace & Defence Clothing, Textiles, Leather & Footwear Metal Fabrication, Capital & Rail Transport Equipment Agro-processing (incl. Food/Beverages & Furniture) Cultural and Creative Industries Plastics, Pharmaceuticals, Chemicals and Cosmetics Automotives Green Industries Services 9

10 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. 10

11 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 Automotive Components 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 Automotive Components Machinery Defence Equipment Fabricated Steel Jewellery Cosmetics Automotive Mining Metals & Minerals Capital Equipment Engineering ICT Electro-technical 11

12 OVERVIEW TARGET MARKETS SUB-SAHARAN NORTH ASIA LATIN NORTH MIDDLE EAST EUROPE AFRICA AFRICA AMERICA AMERICA 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 12

13 DIVERSIFICATION ACTION PLAN 2014/15 13

14 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 14

15 DIVERSIFICATION TARGETS Performance Indicator Targets 2014/2015 Value of export sales facilitated Number of National Pavilions managed Number of Trade Missions organized Number of Investment and Trade Initiatives & Special Projects organized Number of companies financially assisted through the EMIA Group Offerings Scheme R3 billion 29 National Pavilions 45 Trade Missions 5 Investment and Trade Initiatives 2 special projects organized (SA Expos in China) 1025 companies 490 NP 350 GM 185 ITI / Special Project 15

16 TISAS INTEGRATED EXPORT SERVICES EXPORT DEVELOPMENT SERVICES EXPORT PROMOTION SERVICES IN-MARKET ASSISTANCE Trade Opportunity Matching Export Advice & Information National Pavilions Outward Selling Trade Missions Market Research & Intelligence Assessment of Prospects Advice on Incentives & Financial Support Exporter Development Programmes Inward Buying Trade Missions International Trade Initiatives Identifying Potential Business Partners Export Promotion Projects Export Awareness Workshops Export Council Support / Sector Specific Programmes Primary Market Research Assistance Individual Assistance Programmes Co-ordinating Visits to Markets Market Entry Assistance 16

17 SUB-SAHARAN AFRICA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Angola FILDA Cameroon DRC ITI (tbc) Ethiopia Ghana Kenya (tbc) Ghana International Trade Fair 2015 Mozambique FACIM Nigeria Sudan IBM 17

18 SUB-SAHARAN AFRICA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Tanzania Dar Es Salaam International Trade Fair 2014 Uganda Zambia Zimbabwe ZAITF ITI 18

19 NORTH AFRICA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Algeria Tunisia 19

20 ASIA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Hong Kong Indonesia Japan Singapore Hong Kong International Jewellery Agro-processing Agro-processing Foodex Japan South Korea Thailand Taiwan Korea International Boat Show (KIBS) Agro-processing Capital Equipment Agro-processing Capital Equipment 20

21 ASIA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Vietnam China Agroprocessing Capital Equipment China Expos* India India International Trade Fair (IITF) ITI 21

22 EUROPE Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 France IBM Electrotechnical Sial Paris Midest Germany IBM Electrotechnical Auto Mechanika Germany Fruit Logistica Berlin Netherlands Turkey Poland Russia IBM Electrotechnical World Food Moscow IBM Electra Mining ITI (TBC) 22

23 LATIN AMERICA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Brazil ITI Chile Peru IBM Electra Mining 23

24 MIDDLE EAST Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Iran Oman Qatar Saudi Arabia UAE IBM SA Auto Week IBM SA Auto Week IBM SA Auto Week Gulfood Auto Mechanika Middle East IBM SA Auto Week International Defence Exhibition & Conference (IDEX) 24

25 NORTH AMERICA Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Canada Cuba Mexico IBM Electra Mining Havana Trade Fair (FIHAV) Mining & Capital Equipmen t USA IBM Electra Mining IBM Africa Aerospace & Defence World Bank (Infrastructur e) 25

26 SOUTH AFRICA (IN-COUNTRY EVENTS) Country Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 South Africa Electra Mining Africa Aerospace & Defence South African Auto Week Mining Indaba 26

27 THANK YOU Jardine Omar Deputy Director: Export Promotion (Services) 27