It could be the ideal time to set up in Europe

9 November 2020

Business leaders in Flanders in the northern part of Belgium believe South African companies should seize opportunities to invest in, and export to, the European Union as conditions have never been more attractive.

To help the South African private sector, the Flanders Investment & Trade organization will host seminars throughout the country this month. The first will be in Cape Town on the 19th of November at the Cullinan Hotel, with others following in the major cities.

Janine Myburgh, President of the Cape Chamber of Commerce and Industry echoes the enthusiasm. “Europe provides unique exporting and distribution opportunities for South African firms, and now may be the right time to establish an exporting and distribution business in the European market,” she says.

“Reasons to focus on Europe for organic growth are substantial”, she says. “The European Union is the largest trading partner and the most important investor in South Africa.

“Also, it has a stable currency that has increased by more than 25% against the Rand since the beginning of the pandemic.  This makes South African products more competitive in the European market.

“Setting up operations in Europe generates hard currency, mitigating any currency exchange risk,” Ms. Myburgh says.

“To make it even easier, South Africa is one of the few African countries with an Economic Partnership Agreement (EPA) with Europe that reduces trade barriers and minimizes import duties and levies on both sides”. 

South Africa is well connected with Europe and Belgium with different international shipping lines, connecting the Port of Antwerp with Cape Town and Durban. South Africa has a direct air link with Belgium thanks to a cargo line with Zaventem (Brussels) and the airport of Liege.

Issued by Dean Le Grange,Media and Digital Co-ordinator, Cape Chamber of Commerce and Industry, 9 November 2020