Finance and Economic Opportunities
- What are the details of the biggest trade partners of the province, including (a) the sectors of the economy in which they trade, (b) the nature of the trade, (c) the GDP sector contribution to both the provincial and the national economy, (d) a list of South African and foreign companies that are major players in the sector and (e) a list of trade partners with their trade contributions expressed as percentages;
- (a) what is the breakdown of the Western Cape’s regional export flow and (b) what was the contribution of each region to Western Cape exports in (i) 2014, (ii) 2015, (iii) 2016, (iv) 2017, (v) 2018, (vi) 2019 and (vii) 2020 to date.
- (a) & (e) The details of the biggest trade destinations of the province with their trade contributions expressed as percentages
An analysis of the top 10 export markets reveals that the Province’s main export destinations are predominantly African (5 of the top 10) and European (3 of the top 10), along with the United States and China.
Table 1: Top 10 Western Cape exports destinations
|
| 2019 | |
Rank | Country | WC exports (R billion, current prices) | WC exports % contribution |
1 | Namibia | 12.6 | 9.8% |
2 | United Kingdom | 9.1 | 7.1% |
3 | United States | 9.0 | 7.0% |
4 | Netherlands | 8.6 | 6.7% |
5 | Botswana | 7.9 | 6.2% |
6 | China | 5.3 | 4.2% |
7 | Germany | 4.8 | 3.8% |
8 | Kenya | 3.8 | 3.0% |
9 | Lesotho | 2.8 | 2.2% |
10 | Zambia | 2.5 | 2.0% |
SOURCE: Quantec
An analysis of the top 10 import destinations reveals that the Province’s main trading destinations are predominantly Asian (5 of the top 10), African (2 of the top 10), European (2 of the top 10) and the United States.
Table 2: Top 10 Western Cape import destinations
|
| 2019 | |
Rank | Country | WC imports (R billion, current prices) | WC Imports % contribution |
1 | China | 30.2 | 13.3% |
2 | Nigeria | 28.6 | 12.5% |
3 | Saudi Arabia | 24.4 | 10.7% |
4 | United Arab Emirates | 21.4 | 9.4% |
5 | India | 9.8 | 4.3% |
6 | Oman | 8.4 | 3.7% |
7 | United States | 7.6 | 3.3% |
8 | Germany | 6.6 | 2.9% |
9 | Angola | 6.4 | 2.8% |
10 | Italy | 6.1 | 2.7% |
SOURCE: Quantec
- The sectors of the economy and the nature of the trade?
The detailed nature of what is traded across sectors (with each trading destination) is captured in Annexure A. An analysis of the sectors for exports reveals that the Province primarily trades the following sectors:
- Petroleum products, chemicals, rubber and plastic
- Food, beverages and tobacco
- Textiles, clothing and leather goods
- Metals, metal products, machinery and equipment
- Transport equipment
- Agriculture, forestry and fishing
- Wood and paper, publishing and printing
- Furniture, other manufacturing
- Radio, TV, instruments, watches and clocks
The detailed nature of what is traded across sectors (with each trading destination) is captured in Annexure A. An analysis of the sectors for imports reveals that the Province primarily trades the following sectors:
- Mining and quarrying
- Petroleum products, chemicals, rubber and plastic
- Food, beverages and tobacco
- Textiles, clothing and leather goods
- Metals, metal products, machinery and equipment
- Wood and paper, publishing and printing
- Furniture, other manufacturing
- Radio, TV, instruments, watches and clocks
- Other non-metal mineral products
- Electrical machinery and apparatus
- the GDP sector contribution to both the provincial and the national economy
Table 3: Sector contribution to national and provincial GDP
Gross Value Added by Region (GVA-R) | 2019 | |
WC Sector's percentage share of total GDP | Sector as a percentage of Provincial GDP | WC Sector Share as a Percentage of National Total Sector |
Agriculture and hunting | 2.7% | 19.9% |
Forestry and logging | 0.1% | 5.9% |
Fishing, operation of fish farms | 0.7% | 65.6% |
Mining of coal and lignite | 0.0% | 0.0% |
Mining of gold and uranium ore | 0.0% | 0.0% |
Mining of metal ores | 0.0% | 0.0% |
Other mining and quarrying | 0.3% | 4.0% |
Food, beverages and tobacco products | 6.8% | 25.1% |
Textiles, clothing and leather goods | 0.7% | 27.3% |
Wood and wood products | 1.8% | 17.8% |
Fuel, petroleum, chemical and rubber products | 2.5% | 12.5% |
Other non-metallic mineral products | 0.4% | 15.7% |
Metal products, machinery and household appliances | 1.4% | 7.9% |
Electrical machinery and apparatus | 0.2% | 11.4% |
Electronic, sound/vision, medical & other appliances | 0.2% | 14.8% |
Transport equipment | 0.6% | 7.7% |
Furniture and other items NEC and recycling | 1.0% | 13.8% |
Electricity, gas, steam and hot water supply | 2.6% | 11.6% |
Collection, purification and distribution of water | 0.3% | 5.2% |
Construction | 5.2% | 18.4% |
Wholesale and commission trade | 5.5% | 15.1% |
Retail trade and repairs of goods | 8.2% | 16.2% |
Sale and repairs of motor vehicles, sale of fuel | 2.5% | 14.0% |
Hotels and restaurants | 1.3% | 20.4% |
Land and Water transport | 6.1% | 13.1% |
Air transport and transport supporting activities | 2.4% | 20.9% |
Post and telecommunication | 2.3% | 16.2% |
Finance and Insurance | 10.9% | 16.5% |
Real estate activities | 9.2% | 22.1% |
Other business activities | 5.5% | 14.7% |
Public administration and defence activities | 5.6% | 11.2% |
Education | 4.4% | 8.5% |
Health and social work | 5.6% | 12.0% |
Other service activities | 3.2% | 11.0% |
Total Industries | 100.0% | 13.6% |
SOURCE: IHS
(d) A list of South African and foreign companies that are major players in the sector
Knowledge of key export players is critical to growing Western Cape exports. Wesgro, the Western Cape’s trade and promotion agency is aware of the top exporters in the province but for confidentiality reasons cannot publish this data. It would be advisable to make direct requests to the South African Revenue Services who compiles this information.
- (a) What is the breakdown of the Western Cape’s regional export flow?
Figure 1: Western Cape regional export flow - R, million current prices (2020 Q1) |
Source: Quantec/SARS (2020)
In the first quarter of 2020, the City of Cape Town accounted for R19.8 billion of the Western Cape total exports. The City is the largest exporter in the province, followed by Cape Winelands (R8 billion), West Coast (R860 million), Garden Route (R685 million), Overberg (R624 million) and Central Karoo (R17 million).
- What was the contribution of each region to Western Cape exports in (i) 2014, (ii) 2015, (iii) 2016, (iv) 2017, (v) 2018, (vi) 2019 and (vii) 2020 to date?
Throughout the years (from 2014-2020 first quarter), the City of Cape Town has been the main contributor to the Western Cape exports, followed by Cape Winelands, West Coast, Garden Route, Overberg and Central Karoo. Table 1 and 2, below highlight the export contribution of each region to the Western Cape exports in absolute values and as a percentage (region total exports/Western Cape total exports) respectively.
Table 4: Contribution of each region to the WC in terms of exports - R Million, current prices
| - R Million, current prices | ||||||
Region | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 Q1 |
Western Cape | R111,172 | R121,406 | R124,812 | R124,397 | R129,998 | R128,697 | R30,017 |
City of Cape Town | R76,112 | R83,697 | R82,605 | R82,653 | R85,939 | R87,361 | R19,795 |
Cape Winelands | R23,596 | R26,545 | R29,024 | R28,618 | R29,063 | R28,317 | R8,038 |
West Coast | R6,165 | R5,386 | R6,769 | R7,190 | R7,996 | R6,399 | R860 |
Garden Route | R2,305 | R2,686 | R3,167 | R3,370 | R3,832 | R3,630 | R685 |
Overberg | R2,936 | R3,052 | R3,191 | R2,515 | R3,107 | R2,923 | R624 |
Central Karoo | R58 | R40 | R56 | R51 | R62 | R67 | R17 |
Source: Quantec/SARS (2020)
Table 5: Contribution of each region to the WC in terms of exports (%)
| Percentage | ||||||
Region | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 Q1 |
City of Cape Town | 68.46% | 68.94% | 66.18% | 66.44% | 66.11% | 67.88% | 65.95% |
Cape Winelands | 21.22% | 21.86% | 23.25% | 23.01% | 22.36% | 22.00% | 26.78% |
West Coast | 5.55% | 4.44% | 5.42% | 5.78% | 6.15% | 4.97% | 2.86% |
Garden Route | 2.07% | 2.21% | 2.54% | 2.71% | 2.95% | 2.82% | 2.28% |
Overberg | 2.64% | 2.51% | 2.56% | 2.02% | 2.39% | 2.27% | 2.08% |
Central Karoo | 0.05% | 0.03% | 0.04% | 0.04% | 0.05% | 0.05% | 0.06% |
Source: DEDAT calculations (2020)
Annexure A
Detailed Sectoral break down per export destination
- Nambia
Top Export Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 5,536,939,940 |
Food, beverages and tobacco | 2,484,134,342 |
Textiles, clothing and leather goods | 1,159,625,655 |
Metals, metal products, machinery and equipment | 1,044,324,057 |
Transport equipment | 653,618,420 |
Agriculture, forestry and fishing | 515,173,345 |
Wood and paper; publishing and printing | 451,929,590 |
Furniture; other manufacturing | 304,836,794 |
Electrical machinery and apparatus | 212,026,241 |
Radio, TV, instruments, watches and clocks | 203,198,189 |
Other non-metal mineral products | 81,398,714 |
Mining and quarrying | 20,861,467 |
Electricity, gas and water | - |
SOURCE: Quantec
- United Kingdom
Top Export Sector | 2019 (SA Rand, current prices) |
Agriculture, forestry and fishing | 1,474,077,210 |
Food, beverages and tobacco | 241,488,266 |
Furniture; other manufacturing | 90,972,348 |
Mining and quarrying | 72,091,860 |
Radio, TV, instruments, watches and clocks | 51,039,187 |
Metals, metal products, machinery and equipment | 33,719,027 |
Petroleum products, chemicals, rubber and plastic | 33,197,248 |
Textiles, clothing and leather goods | 22,854,377 |
Transport equipment | 19,163,974 |
Wood and paper; publishing and printing | 9,813,137 |
Electrical machinery and apparatus | 6,582,048 |
Other non-metal mineral products | 6,518,937 |
Electricity, gas and water | - |
SOURCE: Quantec
- United States
Top Export Sector | 2019 (SA Rand, current prices) |
Transport equipment | 1,627,569,105 |
Furniture; other manufacturing | 1,595,395,207 |
Metals, metal products, machinery and equipment | 1,378,014,116 |
Agriculture, forestry and fishing | 1,203,862,600 |
Food, beverages and tobacco | 1,118,827,687 |
Petroleum products, chemicals, rubber and plastic | 912,366,229 |
Radio, TV, instruments, watches and clocks | 502,361,087 |
Textiles, clothing and leather goods | 364,523,688 |
Wood and paper; publishing and printing | 157,209,479 |
Mining and quarrying | 83,465,914 |
Other non-metal mineral products | 48,358,645 |
Electrical machinery and apparatus | 23,033,797 |
Electricity, gas and water | - |
SOURCE: Quantec
- Netherlands
Top Export Sector | 2019 (SA Rand, current prices) |
Agriculture, forestry and fishing | 6,690,740,250 |
Food, beverages and tobacco | 1,051,171,850 |
Petroleum products, chemicals, rubber and plastic | 330,489,826 |
Furniture; other manufacturing | 281,856,064 |
Metals, metal products, machinery and equipment | 90,328,625 |
Textiles, clothing and leather goods | 74,701,250 |
Transport equipment | 69,123,369 |
Radio, TV, instruments, watches and clocks | 56,669,223 |
Mining and quarrying | 22,105,327 |
Other non-metal mineral products | 8,374,687 |
Electrical machinery and apparatus | 4,661,565 |
Wood and paper; publishing and printing | 3,661,494 |
Electricity, gas and water | - |
SOURCE: Quantec
- Botswana
Top Export Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 4,150,727,492 |
Food, beverages and tobacco | 2,004,018,020 |
Textiles, clothing and leather goods | 791,182,076 |
Agriculture, forestry and fishing | 264,419,994 |
Metals, metal products, machinery and equipment | 235,115,570 |
Wood and paper; publishing and printing | 121,082,221 |
Transport equipment | 119,098,682 |
Furniture; other manufacturing | 97,896,241 |
Radio, TV, instruments, watches and clocks | 73,554,715 |
Electrical machinery and apparatus | 45,635,137 |
Other non-metal mineral products | 22,354,027 |
Mining and quarrying | 4,214,448 |
Electricity, gas and water | - |
SOURCE: Quantec
- China
Top Export Sector | 2019 (SA Rand, current prices) |
Agriculture, forestry and fishing | 1,892,307,273 |
Mining and quarrying | 1,700,340,710 |
Metals, metal products, machinery and equipment | 732,301,284 |
Food, beverages and tobacco | 664,297,062 |
Petroleum products, chemicals, rubber and plastic | 151,198,154 |
Furniture; other manufacturing | 141,986,211 |
Other non-metal mineral products | 23,215,047 |
Radio, TV, instruments, watches and clocks | 21,950,930 |
Textiles, clothing and leather goods | 14,231,713 |
Transport equipment | 1,942,784 |
Wood and paper; publishing and printing | 252,937 |
Electrical machinery and apparatus | 190,479 |
Electricity, gas and water | - |
SOURCE: Quantec
- Germany
Top Export Sector | 2019 (SA Rand, current prices) |
Food, beverages and tobacco | 1,418,428,115 |
Agriculture, forestry and fishing | 1,262,988,121 |
Transport equipment | 1,261,067,304 |
Petroleum products, chemicals, rubber and plastic | 369,928,028 |
Furniture; other manufacturing | 233,505,188 |
Metals, metal products, machinery and equipment | 161,534,003 |
Radio, TV, instruments, watches and clocks | 71,316,326 |
Mining and quarrying | 21,253,443 |
Electrical machinery and apparatus | 16,429,602 |
Textiles, clothing and leather goods | 14,977,146 |
Wood and paper; publishing and printing | 11,021,030 |
Other non-metal mineral products | 8,913,343 |
Electricity, gas and water | - |
SOURCE: Quantec
- Kenya
Top Export Sector | 2019 (SA Rand, current prices) |
Metals, metal products, machinery and equipment | 2,915,487,497 |
Agriculture, forestry and fishing | 283,749,299 |
Food, beverages and tobacco | 230,674,705 |
Petroleum products, chemicals, rubber and plastic | 100,045,955 |
Textiles, clothing and leather goods | 97,461,933 |
Radio, TV, instruments, watches and clocks | 53,346,146 |
Transport equipment | 52,863,928 |
Furniture; other manufacturing | 36,425,962 |
Other non-metal mineral products | 28,005,049 |
Electrical machinery and apparatus | 21,198,568 |
Wood and paper; publishing and printing | 15,515,004 |
Mining and quarrying | 1,323,669 |
Electricity, gas and water | - |
SOURCE: Quantec
- Lesotho
Top Export Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 1,206,429,718 |
Textiles, clothing and leather goods | 746,271,328 |
Food, beverages and tobacco | 535,132,402 |
Agriculture, forestry and fishing | 126,990,798 |
Metals, metal products, machinery and equipment | 87,283,661 |
Wood and paper; publishing and printing | 59,090,955 |
Furniture; other manufacturing | 34,406,637 |
Mining and quarrying | 27,007,684 |
Radio, TV, instruments, watches and clocks | 26,828,607 |
Electrical machinery and apparatus | 15,476,157 |
Transport equipment | 12,237,195 |
Other non-metal mineral products | 9,929,533 |
Electricity, gas and water | - |
SOURCE: Quantec
- Zambia
Top Export Sector | 2019 (SA Rand, current prices) |
Mining and quarrying | 653,964,378 |
Food, beverages and tobacco | 519,345,126 |
Petroleum products, chemicals, rubber and plastic | 457,400,527 |
Metals, metal products, machinery and equipment | 353,660,998 |
Textiles, clothing and leather goods | 127,076,236 |
Transport equipment | 100,825,818 |
Agriculture, forestry and fishing | 95,742,927 |
Furniture; other manufacturing | 95,251,049 |
Wood and paper; publishing and printing | 48,737,046 |
Electrical machinery and apparatus | 42,199,776 |
Radio, TV, instruments, watches and clocks | 29,227,256 |
Other non-metal mineral products | 21,657,735 |
Electricity, gas and water | - |
SOURCE: Quantec
Sectoral break down per import destination:
- China
Top Import Sector | 2019 (SA Rand, current prices) |
Textiles, clothing and leather goods | 7,380,493,296 |
Metals, metal products, machinery and equipment | 6,114,363,286 |
Furniture; other manufacturing | 4,512,323,121 |
Petroleum products, chemicals, rubber and plastic | 3,660,452,559 |
Radio, TV, instruments, watches and clocks | 2,645,206,126 |
Food, beverages and tobacco | 1,735,456,517 |
Electrical machinery and apparatus | 1,723,905,572 |
Wood and paper; publishing and printing | 919,189,476 |
Other non-metal mineral products | 881,650,576 |
Transport equipment | 528,843,697 |
Agriculture, forestry and fishing | 153,237,220 |
Mining and quarrying | 9,484,664 |
Electricity, gas and water | - |
SOURCE: Quantec
- Nigeria
Top Import Sector | 2019 (SA Rand, current prices) |
Mining and quarrying | 28,588,330,035 |
Petroleum products, chemicals, rubber and plastic | 6,271,804 |
Agriculture, forestry and fishing | 2,416,875 |
Food, beverages and tobacco | 2,080,313 |
Radio, TV, instruments, watches and clocks | 1,192,561 |
Transport equipment | 1,147,230 |
Furniture; other manufacturing | 514,810 |
Metals, metal products, machinery and equipment | 486,461 |
Textiles, clothing and leather goods | 59,744 |
Electrical machinery and apparatus | 26,496 |
Wood and paper; publishing and printing | 18,062 |
Other non-metal mineral products | 1,810 |
Electricity, gas and water | - |
SOURCE: Quantec
- Saudi Arabia
Top Import Sector | 2019 (SA Rand, current prices) |
Mining and quarrying | 22,038,543,436 |
Petroleum products, chemicals, rubber and plastic | 2,359,347,770 |
Food, beverages and tobacco | 36,723,905 |
Metals, metal products, machinery and equipment | 8,955,882 |
Other non-metal mineral products | 3,225,056 |
Radio, TV, instruments, watches and clocks | 623,425 |
Textiles, clothing and leather goods | 455,905 |
Agriculture, forestry and fishing | 449,733 |
Furniture; other manufacturing | 387,309 |
Wood and paper; publishing and printing | 127,465 |
Electrical machinery and apparatus | 22,574 |
Transport equipment | 720 |
Electricity, gas and water | - |
SOURCE: Quantec
- United Arab Emirates
Top Import Sector | 2019 (SA Rand, current prices) |
Mining and quarrying | 14,389,604,906 |
Petroleum products, chemicals, rubber and plastic | 6,720,247,868 |
Furniture; other manufacturing | 109,888,684 |
Food, beverages and tobacco | 52,896,673 |
Other non-metal mineral products | 46,708,494 |
Metals, metal products, machinery and equipment | 32,781,758 |
Radio, TV, instruments, watches and clocks | 19,918,973 |
Electrical machinery and apparatus | 15,459,273 |
Transport equipment | 13,515,925 |
Agriculture, forestry and fishing | 9,064,637 |
Wood and paper; publishing and printing | 7,580,942 |
Textiles, clothing and leather goods | 2,484,268 |
Electricity, gas and water | - |
SOURCE: Quantec
- India
Top Import Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 6,585,555,933 |
Textiles, clothing and leather goods | 1,165,929,387 |
Food, beverages and tobacco | 565,930,720 |
Electrical machinery and apparatus | 352,102,985 |
Metals, metal products, machinery and equipment | 350,342,860 |
Furniture; other manufacturing | 288,901,664 |
Mining and quarrying | 186,157,651 |
Agriculture, forestry and fishing | 113,047,826 |
Radio, TV, instruments, watches and clocks | 73,094,239 |
Wood and paper; publishing and printing | 71,569,821 |
Transport equipment | 57,842,783 |
Other non-metal mineral products | 38,035,290 |
Electricity, gas and water | - |
SOURCE: Quantec
6) Oman
Top Import Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 8,492,962,832 |
Other non-metal mineral products | 558,845 |
Furniture; other manufacturing | 513,500 |
Agriculture, forestry and fishing | 242,664 |
Radio, TV, instruments, watches and clocks | 26,287 |
Mining and quarrying | 2,267 |
Food, beverages and tobacco | 6 |
Textiles, clothing and leather goods | - |
Wood and paper; publishing and printing | - |
Metals, metal products, machinery and equipment | - |
Electrical machinery and apparatus | - |
Transport equipment | - |
Electricity, gas and water | - |
SOURCE: Quantec
7) United States
Top Import Sector | 2019 (SA Rand, current prices) |
Agriculture, forestry and fishing | 1,908,457,924 |
Mining and quarrying | 1,265,443,451 |
Food, beverages and tobacco | 1,099,669,282 |
Textiles, clothing and leather goods | 995,194,532 |
Wood and paper; publishing and printing | 794,900,763 |
Petroleum products, chemicals, rubber and plastic | 477,499,482 |
Other non-metal mineral products | 237,713,712 |
Metals, metal products, machinery and equipment | 221,111,810 |
Electrical machinery and apparatus | 212,726,490 |
Radio, TV, instruments, watches and clocks | 193,850,913 |
Transport equipment | 133,653,073 |
Furniture; other manufacturing | 90,507,963 |
Electricity, gas and water | - |
SOURCE: Quantec
8) Germany
Top Import Sector | 2019 (SA Rand, current prices) |
Metals, metal products, machinery and equipment | 2,346,389,431 |
Petroleum products, chemicals, rubber and plastic | 1,450,521,035 |
Food, beverages and tobacco | 734,549,111 |
Wood and paper; publishing and printing | 457,237,627 |
Radio, TV, instruments, watches and clocks | 421,299,234 |
Transport equipment | 335,383,951 |
Agriculture, forestry and fishing | 302,388,816 |
Furniture; other manufacturing | 196,919,452 |
Electrical machinery and apparatus | 161,919,535 |
Other non-metal mineral products | 100,766,447 |
Textiles, clothing and leather goods | 96,831,565 |
Mining and quarrying | 1,719,309 |
Electricity, gas and water | - |
SOURCE: Quantec
9) Angola
Top Import Sector | 2019 (SA Rand, current prices) |
Mining and quarrying | 6,452,648,523 |
Agriculture, forestry and fishing | 4,613,902 |
Metals, metal products, machinery and equipment | 1,101,674 |
Food, beverages and tobacco | 716,239 |
Petroleum products, chemicals, rubber and plastic | 579,896 |
Radio, TV, instruments, watches and clocks | 384,888 |
Transport equipment | 231,963 |
Furniture; other manufacturing | 141,089 |
Electrical machinery and apparatus | 7,300 |
Other non-metal mineral products | 7,228 |
Wood and paper; publishing and printing | 6,714 |
Textiles, clothing and leather goods | - |
Electricity, gas and water | - |
SOURCE: Quantec
10) Italy
Top Import Sector | 2019 (SA Rand, current prices) |
Petroleum products, chemicals, rubber and plastic | 2,178,725,890 |
Metals, metal products, machinery and equipment | 1,662,562,687 |
Food, beverages and tobacco | 587,400,796 |
Transport equipment | 443,416,939 |
Furniture; other manufacturing | 245,269,572 |
Radio, TV, instruments, watches and clocks | 240,780,574 |
Textiles, clothing and leather goods | 217,625,206 |
Other non-metal mineral products | 189,392,979 |
Wood and paper; publishing and printing | 166,822,055 |
Electrical machinery and apparatus | 117,800,748 |
Agriculture, forestry and fishing | 59,203,518 |
Mining and quarrying | 398,858 |
Electricity, gas and water | - |
SOURCE: Quantec
