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Western Cape Business 2021

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  • Tourism
  • Renewables
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  • Agriculture
  • Port
  • Overview
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The 2021 edition of Western Cape Business is the 14th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on thriving agricultural exports gives insight into the details of what fruits and wines go where. An interview with the Port Manager of the Port of Cape Town provides more understanding of the scale of the logistics operation that is a major port. Another special feature examines the City of Cape Town as a national headquarters for the thriving asset management sector. The cover picture reflects an exciting new find of gas condensate off the south-eastern coast, a potential game-changer for the Western Cape and South African economies. This new development is covered in the overview of the oil and gas sector.

SPECIAL FEATURE is the

SPECIAL FEATURE is the world’s second-largest citrus exporter, after Spain, and the number 11 in the world in terms of production. Citrus exports earned South Africa about R20-billion in 2019. Assessed independently from the country, the Western Cape is the world’s fifth-largest exporter of citrus fruits as it is responsible for 62% of the nation’s volumes. Oranges are the province’s number one citrus export (54% in 2017) and soft citrus (19%) is growing steadily. Europe remains the most important market but Asia and Oceana markets grew from 34% in 2008 to 42% in 2017. The top five countries are the Netherlands, the UK, Russia, the UAE and China. By contrast, flower growers were badly hit by the effects of the global shutdown. The Western Cape has a strong fynbos sector. Normally, Europe accounts for 80% of exports. National beef exports increased from 8 292 tons in 2001 to 31 888 tons in 2018 with the largest areas of growth in Muslim countries. The Western Cape contributes 15% of national beef output. The Covid-19 lockdown had a big impact on wine exports and not only because a liquor-export ban was in place for five weeks. Logistics at the Port of Cape Town were reduced to a crawl and with fresh fruit and vital supplies taking priority, wine exporters were at the back of the queue. Within South Africa, a sophisticated logistics chain can get fruit from harvest to consumer in 40 days (Freight, Logistics and Warehousing). A digital system is to be introduced by the Perishable Products Export Control Board (PPECB) which, along with e-certification launched by the Department of Agriculture, Land Reform and Rural Development, should enhance efficiencies. The Fresh Produce Exporters’ Forum (FPEF) and the Department of Science and Innovation are exploring improved packing and cold-storage methods. South African winemakers are aiming for better quality instead of greater volumes. Which is not to say that volume is being ignored. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of South Africa) are cooperating on the Chinese market. A 2006 agreement, the SADC Economic Partnership Agreement, gives produce from the region full or partial exemption from duties on exports into the EU. The three biggest markets by value and volume are the UK, Germany and the Netherlands. The UK is likely to sign a similar agreement, post-Brexit. South Africa produces about 4% of the world’s wine. The wine industry contributes R36-billion to the country’s gross domestic product (GDP) and employs nearly 290 000 people. Vinpro is the wine industry organisation which represents 2 500 South African wine grape producers, wineries and wine-related businesses. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape. Agri-tech exports The Western Cape is not just a leader in products that grow in the ground, but it is also a world leader in products that hover above the ground. Drone and data specialist Aerobotics has more than 900 clients in 18 countries who have signed up for orchard monitoring, yield and harvest projections and pest and disease management. The drones can also be deployed to pick out individual trees that are classified as “problem trees”. Aerbotics’ Yield Estimation Package for citrus, which was launched in 2019, gives reports on fruit size and colour distribution ahead of the harvest season and projections on yield. The Cape Town-based company, which featured in an article in the Arena Holdings publication Food Basket in 2020, was founded in 2004 as a drone manufacturer and evolved into a data provider. Another digital innovation for exporters was launched in September 2020 in the form of the Cape Export Network. CEN, a joint initiative of the Western Cape Provincial Government, Wesgro and Wines of South Africa (WoSA), is a platform that connects wine producers, buyers and importers. ■ WESTERN CAPE BUSINESS 2021 14

A more resilient and responsible SA wine industry #SaveSAWine helped create awareness during lockdown. The South African wine industry will rise up again following one of the toughest years yet, to be even more resilient, resourceful and responsible. The industry had just started recovering from a three-year drought when the Covid-19 national lockdown was implemented, banning all exports and local sales of alcohol for a large part of 2020. “We lost close to R7.2-billion in direct revenue, which left many producers, wineries and related businesses in dire straits, many more individuals without employment and the industry with a large surplus of uncontracted wine,” says Vinpro MD Rico Basson. The road to recovery will be long and hard, but the wine and wine tourism industries remain resilient, celebrating milestones along the way. “Through sound advocacy with government, Vinpro and our industry partners played our part to reopen trade and tourism activities and secure financial relief for certain segments of the industry,” Basson says. Driving exports The #SaveSAWine social media campaign helped create an awareness of South Africa’s exceptional wines across the globe, while Wines of South Africa and Wesgro continuously drive various initiatives to grow exports. Wine tourism workers received financial support from the Western Cape Department of Agriculture, while Vinpro presented a series of direct-to-consumer workshops and launched a wine tourism skills audit which will guide further development and training in 2021. Wine grape producers and wineries are also Contact details Vinpro Tel: +27 21 276 0429 | Email: info@vinpro.co.za | Website: www.vinpro.co.za FOCUS improving efficiencies and re-evaluating their business models, while Vinpro and its industry partners are facilitating programmes to balance supply to bring about greater price stability. “For the wine industry to be sustainable, it also needs to drive responsible production, trade, marketing and consumption of alcohol,” Basson says. Apart from comprehensive educational programmes and campaigns by the alcohol industry body Aware.org (Association for Alcohol Responsibility and Education), the industry has also joined hands with government, civil society and labour to change behaviour through targeted interventions which address foetal alcohol spectrum disorder, drinking and driving or walking, underage drinking, community formalisation and binge drinking. About Vinpro Vinpro represents 2 500 South African wine grape producers, cellars and wine-related businesses, while providing strategic direction, rendering specialised services and driving people development. 15 WESTERN CAPE BUSINESS 2021

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