Western Cape Premier Alan Winde has appealed to the United States for protection of export industries and jobs, following a decline in the province's exports to the US market. According to the Western Cape government, exports to the US dropped by 16.2% to approximately R14.51 billion last year. Winde recently returned from an official visit to the US, where trade, investments, and job creation were central to discussions with government and private sector role players.
The decline in exports was attributed to additional US tariffs and the temporary lapse of benefits under the African Growth and Opportunity Act (Agoa). As a result, the US dropped from the Western Cape's second-largest export market to its fourth-largest. The Western Cape government reported that the province was responsible for more than 50% of South Africa's total exports of agricultural and agro-processing products to the US. The province also has a significant share in the country's exports of seafood, yachts and vessels, jewelry, beauty products, and vehicle engine components.
The Western Cape's largest export product to the US is citrus fruits, valued at approximately R1.96 billion last year. Fortunately, fresh oranges were exempt from the additional US import tariffs. Winde stated that the province supports the national government's efforts to secure further tariff exemptions for other industries and ensure South Africa's continued participation in Agoa. The Western Cape government is working to strengthen economic ties and protect market access.
Despite current diplomatic challenges, US investments in the Western Cape reached a decade-high of R11.41 billion last year. The US remains the province's largest source of direct foreign investment, with over 60 projects benefiting from a total capital expenditure of R31.95 billion from 2016 to 2025. Winde met with representatives from the US Department of State, the National Security Council, and various financing and trade institutions during his visit.
In addition to trade and investment discussions, Winde also engaged with American investors in the Western Cape economy. The US is also the province's second-largest tourism source market, with 174,014 American tourists visiting the Western Cape last year, representing a 6.56% increase from the previous year. These tourists are estimated to have spent approximately R2.75 billion directly in the province.
Winde emphasized that the purpose of the US visit was to strengthen economic ties and protect market access. The Western Cape government's top priority is to grow the economy and create more jobs. The province is working to attract further investment and promote its export industries.
The Western Cape government is optimistic about the potential for growth and job creation through strengthened economic ties with the US. The province will continue to engage with the US government and private sector to promote trade and investment opportunities.
Key points
- Western Cape Premier Alan Winde appeals to the US for protection of export industries and jobs.
- The US remains the Western Cape's largest source of direct foreign investment.
- The Western Cape's exports to the US dropped by 16.2% to approximately R14.51 billion last year.
