The Nelson Mandela Bay Business Chamber has recorded an 8.82% increase in the number of Certificates of Origin (CoO) issued to local exporters in the first half of the year despite the current unfavourable economic conditions, says Chamber chief executive, Denise van Huyssteen.
This represents a total of 6297 certificates issued between January and June 2023, compared to 5741 issued during the same period last year. The biggest drivers for the positive uptick were mainly Wool and Mohair, Hides and Skins, Manganese Ore, Perishable and General Manufacturing sectors.
What is a CoO (Certificate of Origin)? A certificate of origin is an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. The document also serves as a declaration by the exporter and, for almost 155 years, it has remained as one of the critical services offered by the Chamber.
“Considering the current economic conditions which businesses are operating under, this points to the resilience and innovation of exporters to survive, despite challenges such as loadshedding and the high costs associated with logistical issues caused by the rail infrastructure decline and port inefficiencies. In terms of the automotive industry, these results align with Naamsa’s new vehicle sales, which point to minimal growth in vehicle exports during the first half of the year and a decline in June exports versus the same period last year.”
“We also need to remember that the increase in exports, as evidenced by the increase in Certificates of Origin issued, comes off the back of three difficult years which were impacted by the covid pandemic, global supply constraints and war in Ukraine,” says Van Huyssteen.
“Locally, in order to retain and grow exports, it is critical that we continue to collaborate with Eskom and the Nelson Mandela Municipality to mitigate against the risks associated with loadshedding and unplanned power outages. There is no doubt that the 24 stage 5+ 24 hour schedule has helped and as we go forward it is important that load curtailment is also rolled out as broadly as possible to those manufacturers where this solution is a better fit. Adjacent to this, focus needs to be placed on the security and maintenance of sub-station infrastructure.”
The Nelson Mandela Bay Business Chamber, Johannesburg and Cape Chamber are founding members of the Association of South African Chambers (ASAC), which issues 80-90% of all Certificates of Origin in South Africa.
The Association represent businesses of all sizes, across sectors, and collectively represent a significant proportion of the organised business community in South Africa – eleven Regional Business Associations from five provinces.
Collectively, ASAC represents more than 7000 members from SMMEs to large corporations, across all sectors, and more than 850,000 people are employed in affiliated businesses.
Alan Straton
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