Sapma Import Export Forum:

AGOAACFTA(DTI&C)

AGOAACFTA(DTI&C)

The establishment of an Export Forum in South Africa’s Paint and Coatings sector is a strategic initiative to capitalise on trade agreements like the African Growth and Opportunity Act (AGOA), African Continental Free Trade Area (ACFTA), and agreements with the European Union. This forum aims to leverage Department of Trade, Industry, and Competition (DTI&C) Supply-Side Incentives to enhance the sector’s global competitiveness.

Justification For An Export Forum

  • AGOA and ACFTA Opportunities: Access to duty-free markets in the US and Africa provides significant expansion potential.
  • European Union Market: Existing EU trade agreements enable penetration into this lucrative market.
  • Agreements with Other Key Markets:
    • United Kingdom: Post-Brexit trade continuity agreements offer preferential access to the UK market.
    • BRICS Nations: Bilateral agreements reduce trade barriers, facilitating entry into rapidly growing economies.

  • DTI&C Supply-Side Incentives: These reduce production costs and boost export competitiveness.
  • Government Support: Enhanced access to government resources, including export guarantees and financial assistance.

  • Industry Growth: Increased exports can drive industry growth, job creation, and economic contributions.
  • Skills Development: Exposure to international markets fosters skill development within the sector.

  • Innovation and Quality Improvement: International standards and competition drive innovation and quality.
  • Brand Recognition: A strong international brand enhances global reputation.

Steps to Create an Export Forum

    • Identify Key Players: Include manufacturers, exporters, industry associations, and government representatives.
    • Consultations and Workshops: Initial consultations to understand stakeholder needs and concerns.

    • Establish a Steering Committee: A representative committee to guide the forum’s formation.
    • Define Objectives and Scope: Clear outline of objectives, scope, and structure.

    • Market Analysis: Comprehensive analysis to identify potential export markets.
    • Action Plan: Detailed plan with short-term and long-term goals, timelines, and responsibilities.

    • Training and Workshops: Programs to enhance export readiness.
    • Technical Assistance: Support on export procedures, compliance, and standards.

    • Government Partnerships: Collaborate with DTI&C and other bodies for support and incentives.
    • International Partnerships: Establish partnerships with global trade organisations and industry associations.

    • Trade Missions and Exhibitions: Participation in international trade events to promote products.
    • Brand Development: Strong brand identity for South African paint and coatings.

    • Performance Metrics: Establish KPIs to monitor progress and impact.
    • Regular Reviews: Periodic reviews to adjust strategies for continuous improvement.

Prioritisation for the Export Forum

  1. Market Research and Analysis: Focus on identifying high-potential export markets and their requirements.
  2. Capacity Building: Enhance manufacturers' capabilities to meet international standards and compliance.
  3. Incentive Utilisation: Maximise use of DTI&C incentives to reduce production costs and improve competitiveness.
  4. Stakeholder Collaboration: Ensure strong collaboration to leverage collective strengths and resources.
  5. Brand Development: Invest in a recognisable global brand.
  6. Monitoring and Evaluation: Track progress regularly and make data-driven adjustments.

Overview of Export-Geared Agreements

  1. European Union (EU): EU-SADC EPA allows duty-free and quota-free access to the EU market.
  2. United Kingdom (UK): Post-Brexit UK-SACU-Mozambique EPA ensures uninterrupted duty-free and quota-free access.
  3. Russia: Bilateral agreements focus on reducing trade barriers in various sectors.
  4. China: Agreements under BRICS reduce tariffs and promote exports.
  5. India: Bilateral agreements and BRICS framework enhance market access.
  6. Brazil: Agreements under BRICS promote trade and reduce tariffs.

Enhance export readiness and competitiveness through monthly expert-led sessions on topics like market research, export procedures, trade agreements, quality standards, logistics, financial management, marketing, risk management, and international contracts.

How the DTI&C Works with Export Councils Export councils must meet requirements such as a formal constitution, membership base, strategic plan, governance, financial management, performance metrics, and regulatory compliance. Assistance includes funding support, capacity building, market access facilitation, research and development, and infrastructure development.

Conclusion

Creating an Export Forum within South Africa's Paint and Coatings sector, along with a CPD program, will significantly enhance export readiness and competitiveness. Leveraging trade agreements, government incentives, and capacity building will drive growth and contribute to the South African economy. Aligning with DTI&C regulations and support mechanisms will facilitate market penetration and economic growth.

Link to the Import/Export Trade Forum registration document: https://forms.gle/E3z9YkH34GzHbmdW6

For more information contact: admin@sapma.org.za