2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08PROGRAMME PERFORMANCETRADEPROMOTION3.2 Trade Promotion trends in performance from 2005/06 to 2007/08MeasurableObjectivesIncreasethe value ofexportsPerformance Measure 2005/6(actual)Value of exportsgeneratedNewmeasure2006/7(actual)2007/8 CompoundAnnualGrowthReason for deviationR17,760 mil R46,171 mil 160 Targets were overachieved dueto a weaker rand and soonerthan expected turnaroundorders generated from trademissionsIncrease thenumber ofexportersGeneration of newexportersNo. of existingexporters assistedNewmeasureNewmeasure6 16 166 Target exceeded due to theweaker rand21 31 47 Target exceededIncrease thevalue of tradewithin theprovinceNo. of businessesbenefiting from DTIincentivesNewmeasure29 16 -45 The shortfall is a result ofmissions cancelled by the DTIand unsuccessful applicationsdue to delays in submittingrequired documentation4 Trade Promotion challenges faced during 2007/08• The language barrier is still a challenge in new markets – Asia and Africa (Chinese, Mandarin, Portuguese andFrench speaking);• DTI cancelled major international trade Initiatives and companies have been unsuccessful in their applications forthe DTI Export Marketing and Investment Assistance Scheme;• Non-tariff barriers have a negative effect on our exporters, e.g. toxic fertilisers in the pineapple industry5 Trade Promotion achievements during 2007/08• E-platform was launched in February 2008 to enhance access to international markets;• MFA Global secured a contract worth R2 mil in Oman;• MFA Global secured a tender to supply a housing project in Beira, Mozambique;• Makana Meadery secured a contract to supply the Japanese Market with the health beer (Qhilika);• Due to a growing demand for their product, Makana Meadery has opened a distribution branch in the United Statesunder the name B United International Inc. Redding CT 06896;• Prisma Engineering received a contract to supply the Maputo Port with equipment to the value of R1 440 000 perannum. This has created employment of 200 new jobs;• OPM Tooling has been exporting electronic connectors (demisters) to the US, during the last quarter of the financialyear they expanded exports to Belgium, Estonia, UK and Peru;• Momentos of Africa has expanded to three more outlets at the Cape Town Airport - International Departures, ORTambo Airport domestic commercial floor, and the Waterfront in Cape Town;• Since the Scandinavian mission two years ago the export sales of Cape Mohair Spinners to the area have beenaccumulating progressively.40