Western Cape Business 2020 edition

The

The Western Cape economy in statistics Tourism statistics (2018) • Western Cape share of international tourist arrivals: 1.7-million (16.2% of SA) • Total foreign direct spend in Western Cape: R16.3-million (19.8% of SA spend) • Bed nights: 23.3-million (19.7% of SA bed nights) • Length of stay: 12.9 nights (most in SA) Top 10 tourism source markets (2018) 1. United Kingdom 2. Germany 3. United States 4. Namibia 5. France 6. Netherlands 7. China 8. Australia 9. Brazil 10. Italy Western Cape export markets Largest markets for Western Cape exports Africa: .3-billion EU: .4-billion SACU: .8-billion SADC: 3-million Western Cape export markets – Africa Exports to Africa 2015 .45-billion 2016 .19-billion 2017 .36-billion Imports from Africa 2015 .76-billion 2016 .49-billion 2017 .79-billion Exports to Africa by value (2017) Refined petroleum oil: 8-million Flat rolled iron: 5-million Tobacco: 2-million Fruit and vegetable juices: 5-million Apples, pears and quinces: -million WESTERN CAPE BUSINESS 2020 26

gion stern Cape Trade & Investment into Africa 18 Imports from Africa by value (2017) 1. Introduction to Trade Crude petroleum: .9-billion Frozen fish: -million he Western Cape exported USD9.33bn worth Shirts: of goods and imported -million USD13.9bn worth of goods in 2017. The rade deficit is mainly due to the large import Malt of petroleum beer: products, that -million when excluded from imports and exports everse to a trade surplus. The strategic location Men’s of the clothing: Western Cape, being -million home to three important South African orts makes it the second largest province in terms of total trade after Gauteng. The Western Cape’s total share f South African exports was 10.46% in 2017. Top African destinations for Western Cape exports (2017) he Western Cape has advantageous access Namibia: to world markets through 4-million preferential trade agreements between outh Africa and other major markets such as Botswana: Europe and the United States. 8-million South Africa is also a member of the outhern Africa Development Community (SADC), Kenya: the Trade Development 5-million and Cooperation Agreement (TDCA) nd the Southern African Customs Union (SACU) Zambia: among other agreements. 0-million The international trade regime has ertainly seen some reorganisation of late. Lesotho: To the North, Brexit has cast 3-million widespread uncertainty across almost very aspect of cross-border trade and investment involving the UK. To the West, global supply chains have been nsettled by the renegotiation of NAFTA (now Top the African USMCA) sources and US tariffs for on Western steel and Cape aluminium. imports To the East, (2017) hina’s escalating trade war with America will Angola: have far-reaching economic -billion repercussions. Nigeria: 8-million he potential showstopper, however, is happening Namibia: right here on the doorstep 4-million of the Western Cape, with the signing f the African Continental Free Trade Area (AfCFTA) Swaziland: Agreement earlier 6-million in 2018. The AfCFTA aims to establish a ree trade area spanning the 55 Member States Equatorial of the African Guinea: Union (AU). -million It was launched in March 2018 and has een signed by 49 countries. The AfCFTA includes undertakings by Member States to progressively eliminate ariffs and non-tariff barriers to trade in goods Western and liberalise Cape trade share in services; of agricultural cooperate on investment, products intellectual imported by roperty rights, competition policy, customs the matters, rest and of to Africa establish (2017) a dispute settlement system. Fruit and vegetable juices: 20.4% he AfCFTA is aspirational by nature; it is Fresh a framework apples, agreement pears and that quinces: will systematically 6% be implemented by uilding upon existing Regional Economic Wine: Communities (RECs) and preferential 20.7% trade arrangements. The greement establishes an agenda by which Other further fermented technical alignment beverages: and trade liberalisation 49% will take place. The greement enters into force once ratified by Citrus 22 countries. fruit: Although South Africa 26.6% is likely to ratify the AfCFTA by he end of 2018, most of the details are only set to be negotiated over the coming years. Once in force and ratified he Agreement will become legally binding for South Africa. Wesgro is the Official Tourism, Trade & Investment Promotion uccessful implementation of this agreement holds the potential to change the face of intra-African trade and acilitate enormous investment into the Continent. The AfCFTA will cover a market of 1.2 billion people, projected o reach 2.5 billion Agency by 2050, and for a Cape combined Town gross domestic and product the Western (GDP) of more Cape. than USD3.4 trillion. The conomy of Africa www. as a whole wesgro.co.za is the second fastest growing region in the world however intra-Africa trade remains ow (Afdb, 2017). In 2016 intra-Africa trade constituted only 18% of Africa’s total trade with the globe (Tralac, 2018). he United Nations Economic Commission for Africa therefore estimates that the AfCFTA has the potential to 27 WESTERN CAPE BUSINESS 2020 oost intra-Africa trade by 52% by eliminating tariffs. They also predict that the figure would double through the limination of non-tariff barriers.