Newsletter No. 09 16 March 2018
Click on any ad to go to the advertisers website…
New Development Programme launched to boost EC Exports
SEEKING NEW HORIZONS: Nelson Mandela Bay Business Chamber’s Operations Manager Prince Matonsi (left) and ECDC’s said Senior Manager for Export Promotion pictured with two companies enrolled on the Exporter Development Programme: Buzwebethu Textile Prints CEO Nobuzwe Mabona and SOGA Organic Admin and Logistics Manager Diana Hannah.
The Nelson Mandela Bay Business Chamber in partnership with the Eastern Cape Development Corporation (ECDC) today announced that it has launched a new one-year Exporter Development Programme as part of an enterprise development strategy to empower business owners and companies.
Today, the Business Chamber launched and welcomed several companies that are on the cusp of exporting but in need of further assistance to enter and explore new markets.
According to the recently released EC Export Strategy, many SMEs face key constraints and several barriers such as intensified international competition, unable to participate in potential buyer outreaches, costs relating to marketing, logistics and transport and export documentation. These prohibit companies to expand and grow their products and services in foreign markets.
“The Exporter Development Programme is designed to assist companies to reduce and eliminate all these challenges and barriers,” said Nomkhita Mona, Nelson Mandela Bay Business Chamber.
“We are pleased to announce that we have now concluded a thorough screening and selection process to identify firms that will enter the export market programme,” she said.
The Nelson Mandela Bay Metropolitan is a major exporter of manufacturing products from the province.
In 2016, the Nelson Mandela Bay Metropolitan accounted for 77.5% (or about R41.6 billion) of provincial manufacturing exports followed by Sarah Baartman District at 3.1% (or about R1.6 billion) and the Buffalo City Metropolitan at 2.7% (or about R1.4 billion).
The Nelson Mandela Bay Metropolitan is the most competitive metropolitan in the Eastern Cape when it comes to manufacturing exports, with transport equipment -motor vehicle, parts and accessories – contributing 99.3% to the province followed by metal, metal products, machinery and equipment (97.4%); furniture and other manufacturing (95.3%), other non-metal mineral products (93.1%); petroleum products, chemicals, rubber and plastic (86.3%); textile, clothing and leather goods (78.3%); Radio, tv, instruments, watches and clocks (74.9%); wood, paper, publishing and printing (53.5%).
“It is against these statistics that the ECDC has decided to partner with the Nelson Mandela Bay Business Chamber on delivering the pilot phase of the Exporter Development Programme,” said Phakamisa George ECDC, Senior for Export Promotion.
The companies that will form part of the programme will come from different regions in the province however due to the strength of the Nelson Mandela Bay Metro on exports; the Nelson Mandela Bay Business Chamber will assist with programme implementation.
The Programme entails a combination of interventions aimed at improving the export readiness of the firms and this includes modular training by an accredited service provider as well as mentorship with firms in the Bay that are currently exporting. “The Business Chamber is excited to partner with the Eastern Cape Exporters for providing valuable practical exposure to the emerging exporters” said Nomkhita Mona
The companies will participate on the programme for a period of a year and thereafter an evaluation will be made on the impact of the programme.
Some of the companies that have been enrolled include:
• Buzwebethu Textile Prints – a manufacturing company of creatively-designed and company textiles;
Merging Culture, Colour and Beliefs at Source Africa 2018
WHO are the NEW organisers?
Source Africa is now owned by Messe Frankfurt, the third largest trade fair company in the world with operations in over 50 countries and the global leader in textile fairs.
Source Africa supplements Messe Frankfurt’s current portfolio of textile related trade shows under the umbrella of their ‘Texpertise Network’.
The Messe Frankfurt Texpertise Network is a combination of the world’s most important textile trade fairs. At over 50 events across the globe we showcase what is driving the industry.
WHAT to expect at the show in 2018?
WHEN is Source Africa?
Date: 20-21 June 2018
Times: 9am-4pm daily
Venue: Cape Town International Convention Centre
WHY should you be there?
Visitor registrations now open. Get you FREE ticket online HERE or visit the website www.sourceafrica.co.za
Edcon fails to make the grade
Unlisted retail group Edcon has recorded a poor quarterly performance with a decline in sales and revenue.
On Wednesday, the group reported a 9.4% drop in retail sales for the third quarter while total group revenues decreased 8% to R8.2bn owing to a decrease in retail sales of R795m compared with the prior period.
Edcon attributed the drop in retail sales to a reduction in promotion activity compared with the third quarter of 2017, following the introduction of better entry-price points in fiscal 2017. The quarterly performance was also affected by the sale of the Legit business, the exit of nonprofitable international brands and the closure of unprofitable stores.
Damon Buss, an analyst at Electus Fund Managers, said the retailer was still losing substantial market share compared with its listed peers despite the lower entry-price points as Edcon’s like-for-like store sales had declined 5% versus its listed competitors’ growth of 0.2% in the same period.
“Clearly Edcon have not done enough to improve the product and shopping experience to entice customers back into their stores,” Buss said.
The Edgars division, which targets middle- to upper-income customers, reported a 6.9% decrease in retail sales to R3.5bn in the third quarter of its 2018 financial year. Retail sales at Jet, its discount and value merchandise division, targeted at lower- to middle-income customers, decreased by R90m to R3.2bn. Retail sales in CNA, its specialty division, decreased 9.8%.
Newly appointed Edcon CEO Grant Pattison said while retail sales were negatively affected by weak consumer demand and fierce price competition, he was pleased that Edgars and Jet had continued to trade positively in ladieswear and footwear.
Contrary to close competitor Woolworths, which experienced a decline in retail sales in their ladieswear, Edgars and Jet achieved positive retail sales growth in ladieswear and footwear for the third consecutive quarter, which the group said was a realisation of the benefits from new strategies introduced in these categories.
Edcon’s earnings before interest, taxes, depreciation and amortisation (ebitda) decreased by R283m to R619m, hit by a weak trading performance and additional operating costs in the credit and financial services division of R153m.
It said R23m of this amount related to additional costs of administering Edcon’s own funded trade receivables book and R130m related to net bad debts and an increase in the trade receivable provisions.
Portfolio manager at Gryphon Asset managers Casparus Treurnicht was wary of the figures produced and said the only reason he could “fathom the in-house trade receivables book growth was beyond expectations and is due to indebted customers not settling their accounts”.
Treurnicht said the extra costs mentioned on the ebitda regarding increased costs to service their book perhaps proved this to be valid. “This is something you don’t want to see in a business that is trying to satisfy its funders,” he said.
Rwanda has not banned sale of second-hand clothes: minister
Rwandan infrastructure minister James Musoni has said his country has not banned sale of imported second-hand clothes but is promoting the ‘Made in Rwanda’ concept to encourage his countrymen to prefer buying unused clothes. The country has imposed a certain tax on such imports but has not banned them, he clarified recently at Kampala.
He was attending the East African Community (EAC) Heads of State Retreat on Infrastructure, Health Financing and Development in Kampala, according to a Rwandan newspaper report.
Regional leaders met in Kampala recently to devise means of increasing East Africa’s trade competitiveness through, among other means, creating a competitive textiles industry.
The leaders were speaking at the EAC Heads of State Retreat on Infrastructure, Health Financing and Development in Kampala.
The summit decided to prioritise the development of a competitive regional textile and leather sector to provide affordable, new and quality options of clothing and leather products to East African citizens, according to a communiqué issued at the summit.
The summit was attended by Ugandan President Yoweri Museveni, who is the EAC chairperson and Kenyan President Uhuru Kenyatta. Other presidents who attended the summit include John Magufuli of Tanzania and Salva Kirr of South Sudan. F2F
Did you know……..
Vintage clothing refers to clothing made between 20 and 100 years ago, and retro refers to recently made clothing that is designed to resemble the style of another period.
It became more socially acceptable for women to wear shorts during World War 2, which introduced fabric rationing and forced women to take on more masculine jobs
To Advertise………………….. Click here to see fact sheet with advertising rates.
Please remember to send me your news so that we can share it with all our readers in the weekly newsletter.
Although editorial is neither guaranteed nor implied, suitable editorial for consideration may be submitted to: