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South Africa: Joburg Drive to Empower SMEs for Exports
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Business Day (Johannesburg)
5 August 2008
Posted to the web 5 August 2008
Thabang Mokopanele
Johannesburg
IN AN effort to realise a long-term strategic goal of achieving 9% economic growth by 2014, the City of Johannesburg is pulling out all the stops to promote inward investment and increase the volume and value of exports by small and medium enterprises.
To achieve this the National African Federated Chamber of Commerce and Industry (Nafcoc) and the Johannesburg Chamber of Commerce and Industry (JCCI) have registered about 154 SMMEs on the project.
Nafcoc-JCCI have positioned themselves as a one-stop shop for exports. The focus has been on SMMEs that are potential exporters at different levels of export readiness.
The city and the chamber have initiated the SME export promotion project to provide export support to small businesses in the manufacturing and services sectors of greater Johannesburg.
It also offers export readiness support to small businesses in the manufacturing and services sector, and assists them with export marketing.
The project is part of the municipality's 2030 initiative, a long-term plan to promote inward investment and increase the volume and value of exports.
Behind the initiative is an understanding that the coming 20 years will see Johannesburg's economic landscape change dramatically. It will no longer be dominated by mining and manufacturing but by the services sector. The initiative, commonly known as Joburg 2030, aims to turn the city into an export-orientated hub.
Johannesburg has awarded a two-year contract to Nafcoc/JCCI to help small businesses produce and deliver exportable products and services. The chambers' services include gathering market intelligence, facilitating product and export development and providing trade-related training and mentoring.
Nafcoc/JCCI CE Marius de Jager says the main aim is trade promotion and facilitation.
"That has been our strength since our formation. On trade, our role has been creating opportunities and developing business links to benefit the local exporter."
To ensure that SMMEs understand the intricacies of the exporting business, the chamber helps exporters sort out paperwork, such as certificates of origin.
"I cannot overemphasise the importance of this document. It is more than just a stamped piece of paper; it is the most important document in any export transaction. Its authenticity and integrity has to be unquestionable," he says.
"It can either make or break a deal. The people you are exporting to must have absolute faith in the products you sell them. We are looking at issuing the certificates electronically. At the moment, Singapore is the only country with that kind of service."
JCCI and Nafcoc have also run a course on the importance of the certificate of origin, in partnership with the South African Revenue Service and the trade and industry department.
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"We have realised that many aspirant exporters have difficulty with pricing. We are therefore offering training on export costs and productivity levels. You have to be very careful in this business. The most vulnerable products are fresh and chilled products."
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