Exporters EC

It was a night of celebrations as exporting excellence in the region was celebrated at the Exporter of the Year Gala Banquet.

Exporters Eastern Cape’s 2024 Exporter of the Year Award winners were announced at the prestigious banquet, hosted at the Tramways Building on Friday, 11 October 2024.

“Tonight is a flagship event for Exporters Eastern Cape, one that we look forward to every year not only because it is a highlight on our social calendars, but also because it is a celebration of the culmination of another year of hard work and success by our members in the export industry in the Eastern Cape.”

“Recognising our members’ achievements is a privilege and testament to the partnerships we continue to forge locally and internationally. I have no doubt, after being chairman of Exporters Eastern Cape for 15 years, that we are a unique region with exceptional export businesses, and export support businesses, that are truly of the highest calibre,” said Exporters Eastern Cape Chairman Quintin Levey.

A highlight of the evening was the announcement of the Overall Winner of the 2024 Exporter of the Year Awards, which went to the first-time overall winner, ISUZU Motors South Africa.
ISUZU Vice President for Planning, Marketing and Corporate Affairs, Celestin Ndhlovu, said winning the award was very encouraging, especially looking at how tough the year had been and the hard work the team had put in, into a very competitive market.

“Our strategy has always been to grow the business through exports, and getting this kind of recognition means you’re doing something right. So going back into the business, I think it’s something that encourages everyone, because, you know, when you get incentivized in such a manner, then it shows that the kind of effort you are putting in, is yielding positive results,” said Ndhlovu.

In the year under review, the company had massively grown exports from the Eastern Cape into the rest of the African market, to 26 countries across the continent. In terms of volumes, they were the second highest South African exporter of vehicles (SUV, LCV, CV) into Africa, and the top Eastern Cape-based exporter of vehicles (SUV, LCV, CV) into Africa.

“We have seen our exports grow into Africa. If we look at our production, about 25 to 30% of our volume is exported into Africa, and we continue taking part in some of the discussions with policymakers to make sure that we are creating an enabling environment. So, discussions are something that we also encourage, especially looking at other players, because at the end of the day, if we can improve the kind of trade that happens in Africa, it’s going to be a huge opportunity for all,” said Ndhlovu.

While ISUZU had been a category winner before, it is the first time since the company was established in 2018, that they walked away with the coveted title of Overall Winner of the Exporter of the Year.

In addition to being announced the overall winner, ISUZU also achieved the following Exporters Eastern Cape 2024 accolades: Best Exporter: OEM – Winner. SJM Flex Environmental Award – Merit Award and the IDC Job Creator Award – Merit Award.

Standard Bank was the Platinum Sponsor for the awards evening, along with Gold Sponsors Volkswagen Group Africa and OM & Barker; Silver Sponsor Kingfisher FM; Bronze Sponsors ISUZU, IDC and SJM Flex. The official Media partner of the event was The Herald. The venue sponsor was the Eastern Cape Deveopment Corporation.

Thank you to DG Incentives for sponsoring the gifts for all the guests; BLG Logistics South Africa for sponsoring the main entertainment for the evening; BMW Nelson Mandela Bay for providing luxury vehicles transporting guests from the parking areas to the Tramways Building and Colin Carmody from The Alternative Board for sponsoring Business Coaching Sessions for all the Category Winners.

Thank you to LX Events, Magnetic Storm and OM & Barker for being our event partners for the 2024 Exporter of the Year Banquet!
Congratulations to all the 2024 Exporter of the Year

Category and Merit Award Winners:

2024 Exporter of the Year Overall Winner – ISUZU Motors South Africa

BEST EXPORTER: OEM

Best Exporter OEM Winner – ISUZU Motors South Africa
Best Exporter OEM Merit Award for Strategic Innovation (Growth into Africa) – Volkswagen Group Africa

BEST EXPORTER: CORPORATE

Best Exporter Corporate Winner – Lumotech
Best Exporter Corporate Merit Award for increase in Profitability and Turnover – SJM Flex SA
Best Exporter Corporate Merit Award for Increase in Profitability – Shatterprufe

BEST EXPORTER: MEDIUM ENTERPRISE

Best Exporter Medium Enterprise Winner – S4 Integration
Best Exporter Medium Enterprise – Merit Award for Increase in Profitability and Turnover – Wirquin Manufacturing

BEST EXPORTER: SMALL BUSINESS

No winners.

BEST PROVIDER OF SERVICE TO EXPORTERS

Best Provider of Service to Exporters Winner – C. Steinweg Logistics
Best Provider of Service to Exporters Merit Award for New Contracts – Coega Development Corporation
Best Provider of Service to Exporters Merit Award for Growth & Increase in Profitability – OM & Barker
Best Provider of Service to Exporters Merit Award for Innovation – Thermascan 2020

IDC JOB CREATOR

IDC Job Creator Award Winner – Lumotech
IDC Job Creator Merit Award – ISUZU Motors South Africa

SJM FLEX ENVIRONMENTAL

SJM Flex Environmental Award Winner – Volkswagen Group Africa
SJM Flex Environmental Merit Award – ISUZU Motors South Africa
SJM Flex Environmental Merit Award – Schaeffler South Africa

SJM FLEX ENVIRONMENTAL PRACTICE

SJM Flex Environmental Practice Award Winner – Tavcor Motor Group
SJM Flex Environmental Practice Merit Award – S4 Integration

In the new era of business, there are two critical matters to contend with: the Green Revolution and the Digital Revolution. This was the opening remarks made by Dr Randall Jonas, Business Strategist and Senior Researcher at EU GMSE Skills, during a panel discussion recently hosted by Exporters Eastern Cape.

Facilitating the panel discussion on enhancing the competitiveness of exporters and their value chains, Jonas noted that the South African freight and logistics market, currently valued at 3.79 billion USD, is projected to reach 19.9 billion USD by 2030. The primary growth driver in this market is the courier, express, and parcels sector, fuelled by e-commerce.

Jonas and other panellists focused on a number of critical areas essential for the sustainability of the logistics value chain: green logistics, compliance with the South African Reserve Bank, Transnet’s reform and recovery, technology and smart warehousing.

Lucinda Daniels, Head of Exchange Control for Rand Merchant Bank, discussed the South African Reserve Bank’s shift from a rules-based to a risk-based strategy, which could impact exporters. “This means that compliance in terms of foreign currency trade will become the key responsibility of the exporter, while fostering an ethical culture,” explained Daniels.

Ruan du Toit, Branch Manager at DACHSER South Africa, emphasised the importance of Environmental, Social, and Governance (ESG) factors and the use of technology in logistics. He acknowledged that the initial investment in technology is challenging, but the efficiency benefits outweigh the challenges. He also highlighted the importance of data quality, security, and privacy.

“Technology enhances cargo handling and improves tracking and tracing. It also reduces costs by optimising the supply chain. Technology can analyse data, predict risks, and provide proactive actions to mitigate risks or to create contingency plans,” said Du Toit.

Regarding green logistics, Du Toit mentioned several small steps that can be implemented, such as using renewable energy, recycling, offsetting carbon footprints, optimising vehicle maintenance to reduce emissions, consolidating routes, and optimising cargo. “Collaboration and communication with stakeholders are important. Inventory management is critical, and appropriately skilled workers are needed in the industry,” he added.

From Transnet’s perspective, Dr Andrew Shaw, Group Chief Officer of Strategy and Planning, shared the parastatal's new strategy which is focused on the reform and recovery of its ports and rail systems. Repositioning the ports and rail systems is central to this strategy. He explained that Transnet Port Terminals (TPT) and Transnet National Ports Authority (TNPA) have been separated, with TNPA now having its own board to meet regulatory requirements, performance standards, and licensing conditions, while TPT will focus on infrastructure. “This strategy opens up the possibility for private operators to compete with Transnet and attract private sector investment where expansion is needed,” said Shaw.

To recover the rail network, a similar approach is planned. “Transnet is committed to the reform and recovery plan to drive sustainability,” said Shaw.

He added that due to a decline in available locomotives, decaying port equipment, and a weak maintenance strategy, there is now a strong focus on maintenance and the purchase of new equipment and tugs. To this end, Transnet has appointed a chief operations officer to drive the recovery strategy.

Samantha Dunlop, owner of Selah Trading, addressed the benefits of bonded warehousing for exporters. This offers manufacturers the opportunity to hold imported raw materials and export-ready finished products. She explained that using bonded warehousing assists with just-in-time supply of components and helps avert risks of component shortages. “This concept allows businesses to pull bond goods as needed,” said Dunlop.

Sugan Naidoo, CEO of Titan Cargo, shared best practices on turning adverse situations into positive outcomes. He particularly raised the opportunity of warehousing in strategically located areas, such as state-owned buildings which are often unattended and vacant. Relaying his story, he proudly mentioned the derelict Transnet building near the Cape Town port, which through negotiations with Transnet, he transformed it into a world-class warehouse. “The deal took two years to come to fruition, but today we have a world-class facility,” he said.

Finally, the panellists commented on the volatility of the Rand/Dollar exchange rate and suggested that it might be better to trade in local currencies.

The Eastern Cape economy is in recession after contracting for the third consecutive quarter, with unemployment hovering at 42%. This is a concerning trend, given the province’s enormous potential.

General manufacturing is a significant part of the provincial economy, primarily driven by the automotive sector, the largest manufacturing sector in the Eastern Cape. The province hosts four of the seven Original Equipment Manufacturers (OEMs) operating in South Africa and up to 100 major component manufacturers. Nelson Mandela Bay alone accounts for 45% of local vehicle production and provides 51% of South Africa’s vehicle exports, with over 100 000 vehicles shipped annually through the Port of Port Elizabeth.

The Eastern Cape is also the country’s second-largest citrus-producing province after Limpopo, contributing 25% of the province’s GDP with 24 508 hectares under production. The Eastern Cape is the fifth-largest exporter of lemons in the world and produces soft citrus fruits such as mandarins, oranges, and grapefruit. Additionally, the province hosts the largest percentage of the country’s livestock, producing 30% of the country’s milk, 36% of its wool, and 75% of its mohair, with 70% of the mohair exported to Italy and China.

While the province boasts a wealth of skills, products, and opportunities, there is a significant misalignment between opportunity and productivity. The three main contributors to the negative growth—mining, construction, and manufacturing—raise the big question: why?

The new MEC for Economic Development, Environmental Affairs and Tourism faces a challenging task. An economy cannot develop if the rail and road infrastructure is not maintained and if our ports are not operating at world class efficiency levels. Corruption in tender and procurement processes must be investigated and eliminated.

Road maintenance, fixing traffic lights, prosecuting cable thieves, and replacing streetlights are crucial for safety and functionality. In addition, poor road markings and dilapidated overhead signage pose significant safety risks and hinder tourism prospects. This highlights the need for provincial government and local municipalities to collaborate effectively to promote growth.

To combat unemployment, the provincial government should expedite infrastructure projects, such as building roads and railways. Fortunately, the N2 Wild Coast Road construction project, which has faced numerous delays, is now progressing. However, for substantial growth to occur, the Eastern Cape government needs to revamp itself and foster an environment conducive to investment and tourism. Without these changes, growth will remain sluggish despite the available opportunities.

The Exporters Eastern Cape, which represents most major sectors in the province, continues to work closely with all structures facilitating collaboration and investment and promoting exports. We commend the two business chambers for facilitating business in the province. The Nelson Mandela Bay Business Chamber is aggressively working to create an enabling environment for business in Nelson Mandela Bay. These efforts are essential, but government cooperation is crucial to retain and grow future investments.

Quintin Levy: as also published in The Herald – Let’s Talk Exports – July 2024