Latest Transnet National Ports Authority (TNPA) figures confirm that exports from the province's two commercial ports, particularly from the automotive sector, are on the increase.

TNPA figures show that the number of vehicles landed and shipped grew by 27% or 9,700 units to 45,200 units in the past year and this trend is set to continue for the foreseeable future.

This increase is hardly surprising considering the Eastern Cape produces about 40% of South Africa's car sales and 60% of exports by unit. Together with the components industry, the Eastern Cape accounts for 26% of South Africa's auto sector value add and 30% of provincial employment. Hence, it is a significant contributor to province's growth which stood at 7,4 per cent last year.

While the Motor Industry Development Programme (MIDP) has been pivotal to securing the mammoth sized export contracts secured by the province's "Little Detroit" comprising Mercedes Benz, VW, GM and Ford, smaller entrepreneurs are also showing courage to enter export markets.

The Port-Elizabeth based automotive components supplier and supplier to VW, General Motors and Hella, MFA Global, which accompanied ECDC on earlier missions, to Angola, Mozambique and Dubai, has now led exploratory trips to Cameroon, Pakistan and Saudi Arabia and "these have led to identifying further opportunities," says MFA Global director Makkie Wicomb.

The company employs 12 people and manufactures plastic injection and rubber moulded components,

The TNPA statistics also show overall volume of exports at the East London and Port Elizabeth ports rising in 2006 by 4% and then almost doubling to 7% per cent in 2007.

Exports in other goods are also making their mark. While maize and motor vehicles dominate bulk and breakbulk cargo exports at the East London port, manganese ore exports lead this category at the Port Elizabeth port. Bulk cargo is any unpackaged cargo, ranging from fuel, bulk liquids to variety of grains such as maize, sunflower seed and wheat.

ECDC acting Trade Promotion Head Zodwa Kepeyi says exporting isn't easy but domestic exporters have easy access to offshore markets through several preferential trade agreements.

"South Africa is involved in several preferential trade agreements, at regional and bilateral level and is also a member of the World Trade Organisation (WTO) and founding member of the General Agreement on Tariffs and Trade (GATT). Countries with which South Africa has trade agreements are also easier to access. (give examples)

"The country's membership of the Southern African Development Community (SADC), which consists of 14 states, gives it access to a market of about 140 million people, which is expected to grow at approximately three per cent annually," explains Kepeyi.

She adds that Europe is an easy market, particularly Germany for automotives while African markets present fewer barriers than developed nations.

However, newer markets such as the Middle East present an array of challenges, one of these being language but this problem is fixable, particularly with the help of South African embassies and their interpreters.

Another benefit to working with the embassies is that "they will verify the foreign company".

Kepeyi is encouraged that local exporters are keen to access foreign markets.

"One of the deterrents to becoming an exporter is "that is so challenging". However, ECDC can help allay these fears by providing support which helps the local exporter determine readiness for exports. We use indicators such as the size of the company, number of years in business, production capabilities, adaptability to new environment, financial security and marketing exposure. A business which has been successfully running for a minimum of two years is also more likely to be a successful exporter." Likewise, initiatives such as the Export Network Forums and Exporters Clubs offers network opportunities to discuss any export issues or concerns with logistics service provider executives and industry specialists.

Another imperative is complete understanding of the International Commercial (Inco) terms which indicates the level of involvement between two parties in a transaction.

"These terms determine which party is responsible for the carriage of goods from the plant of the exporting business to the harbour and from the harbour of the importing business to its final destination," says Kepeyi.

She adds that the Department of Trade and Industry has incentive schemes such as the Export Marketing and Investment Assistance scheme (EMIA) which assists domestic exporters, particularly SMMEs, to access foreign markets, a service which remains under-utilised by Eastern Cape exporters.

EMIA varies according to the size of a business. In certain instances, it may pay for 100% for a SMME's flight costs up to R13 000 together with a daily allowance of R1,800 when on a trade mission.

Trade missions present local exporters with opportunities to exhibit their products and individual exhibitions at local and international exhibitions such as national pavilions. During the year, networking meetings are held for local exporters in Port Elizabeth and East London.

Furthermore ECDC annually travels to countries to network with prospective clients such as an earlier trip to Hanover, Germany.  Later this year, ECDC will host a trip to Sweden, Finland, Denmark in which it aims to look at opportunities in renewable energy, Information Communication Technology, agro-processing automotives and general manufacturing as well as another trip to Canada and the United States of America.

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For further information contact:

Zodwa Kepeyi

Telephone 043 704 5713

Cellular 083 451 1759

Email nkepeyi@ecdc.co.za

For ECDC media relations:

Lunga Mtshizana

Telephone 043 726 8833

Cellular 083 618 7557

Email lunga@smgafrica.com