September 4, 2023

The Promising Prospects of Agribusiness Exports


Exploring the unlimited potential of international trade, Agribusinesses are presented with significant opportunities in Cape Town and the Western Cape.  Agribusinesses seeking new horizons in international trade have important facts to consider when it comes to the export of their products.

Exporting can be an excellent way to grow your Agribusiness. It opens doors to international markets, increases revenue, achieves economies of scale, offsets seasonal risks, provides access to new markets, and drives innovation and competitiveness.

Agribusiness constitutes 8% of the Western Cape’s economy, with primary agriculture being the largest contributor, closely followed by processed food and beverages. Notably, the Western Cape stands out as the primary exporter of Agribusiness products among all South African provinces, accounting for nearly 50% of the nation’s Agribusiness exports.

A defining factor that sets the Western Cape apart is its unique Mediterranean and winter-rainfall climate, suitable for the production of a diverse selection of agricultural products. Moreover, the region’s manufacturing resources and a network of ports and transportation further strengthen its reputation in the Agribusiness domain.

For those eyeing expansion into Africa, the Western Cape presents a strategic launchpad. Facilitated by Wesgro’s trade team, businesses not only access opportunities to export to other African nations, but also gain support for expanding their presence across the continent through the Outward Foreign Direct Investment mandate. This includes assistance in establishing production and manufacturing facilities in various African countries.

The Cape is perfectly situated to access the rapidly growing economies and expanding consumer markets of Africa. Three ports and a network of road, rail and air transport also offer an easy link to the rest of the world.

South Africa holds significant global export positions, being the foremost supplier of imported grapefruit in the USA, the second-largest source of imported oranges in the USA, the primary origin of imported fruit and nuts in the Netherlands, and the leading contributor of imported grapes in the UK.

The primary export products from Cape Town and the Western Cape include refined petroleum, citrus fruit, wine, grapes, apples, pears, and quinces, products of iron or non-alloy steel, fruit and vegetable juice, fruits, nuts, and other edible parts of plants, fish fillets, as well as yachts.

Wesgro’s international trade strategy revolves around improving exporter capabilities, capacity and strengthening export performance through the Export Advancement and Promotion Programme. This strategy includes integration into global value chains, promoting trade through diverse mechanisms, addressing non-tariff trade barriers, and fostering diversification of exports into higher-value goods and services.

Wesgro’s International Trade team is mandated to grow the value of exports from Cape Town and the Western Cape. To give effect to this, the team supports exporters from the Western Cape to reach new markets.

Over the past three years, Wesgro has facilitated global exports to the value of almost R17-billion, creating an estimated 3 000 local jobs. Wesgro has assisted almost 3 000 companies reach international markets over the past five years.

Many local enterprises have achieved remarkable growth with Wesgro’s assistance, particularly through targeted trade missions to priority countries.

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