Exports to emerging markets present an opportunity for small business growth, says Eastern Cape Development Corporation (ECDC) executive director of development services Noludwe Ncokazi.

She adds that small enterprise leaders could use the resources the ECDC has to facilitate trade. “Our trade promotion unit assists entrepreneurs with trade matters and tapping into department of trade and industry (DTI) incentives.”

Ncokazi was speaking at an entrepreneurial workshop held in Queenstown as part of a series of workshops the development agency has been conducting to extend its reach since June. The initiative aims to network with entrepreneurs and increase its visibility.

She adds that one of the ECDC’s strategic objectives is to increase the value of trade by bringing money into the Eastern Cape. Part of its mandate is growing exports and contributing positively to the country’s balance of payments.

“As a country we need more exports to surpass imports but from 1995, we have seen the reverse happening. In the Eastern Cape we used to be the largest exporter of oranges but we have been overtaken by Limpopo. We exported a lot of wool but wool production has also decreased,” says Ncokazi.

Business leaders intimidated by global trade

Ncokazi adds that small business leaders tend to be intimidated by global trade.

“When you talk international business small business people think it is for big business and it is out of their reach. However we operate in a global economy and entrepreneurs should start thinking beyond the local environment.”

Growing economies in Africa, Brazil, China and India create export opportunities even for businesses which can clearly define their competitive advantage.

“We want to focus on new export markets and why not African countries like Nigeria, Zimbabwe and emerging economies in other parts of the world like Brazil?” Ncokazi asks.

“There are increased prospects in emerging markets. If you consider trading within Africa, Nigeria alone has a population of 130 million. It’s a massive market and other continents are getting into the Nigerian market.”

Eastern Cape exports restricted to oranges, car

Thus far, Eastern Cape exports such as oranges and locally produced cars have largely been destined for European countries.

She highlights the example of China, the fastest growing economy in the world which hardly lost any momentum following the global economic crisis.

Ncokazi says although China is a competitive economy in terms of price and constantly innovates in technology, much of its growth is fueled by the construction sector to the detriment of food supply.

“China’s economy grows at over 10 percent per year because of massive infrastructure development.  Yet growth is reciprocal and as the economy expands, more opportunities are created because there is more buying power.

“There are buildings everywhere which leaves hardly any space for agricultural production. In the Eastern Cape, land is one of our best resource and we can supply their food needs.”

Agro-industry in SA solution to food security, economic development

According to Ncokazi the country is taking the agro-industry seriously from a food security and economic development point of view and the ECDC is supportive of the sector. She adds that green industry and water desalination are other areas the ECDC is looking to invest in.

Ncokazi warns that increases in labour and energy costs mean that South African business is facing an uphill battle as far as offering products at competitive prices. Businesses aiming to export would therefore have to identify and extensively market their competitive advantage. High standards are expected in most western countries and these may be barrier to entry. Entrepreneurs entering into international trade must acquaint themselves with standards and be prepared to deliver, Ncokazi says.