From the Editor s2

From the editor

It’s getting closer to the end of a tough year! I’m sure there are very few exporters that haven’t experienced the effect of the financial crisis in a negative way. I hope for everyone’s sake that you are all coping with crisis and that your export markets haven’t been affected. Of course the relatively strong rand hasn’t been helping the export effort at all. Now’s the time to prepare for 2010!

I would first like to apologise to CapeSpan. Early on this year I critiqued the websites of some of our export award winners and one of these websites belonged to Capespan. At the time of doing the report I could not access their site and it kept on freezing up on me. When the newsletter went out, the export team at Capespan were upset with me because of my comments about their apparently problematic website. I have subsequently returned to their website on several occasions and I can understand why they were unhappy. They have a very professional, slick and up-to-date website that stands equal to the best we have. It’s a great website – well done, Capespan!

With a tough year behind us, businesses including exporters need to focus on growing their sales in the New Year. One way to achieve this is through e-marketing. E-marketing opens up alternative channels to reach a global audience at a fraction of the cost of traditional marketing channels. But e-marketing is not as easy as it seems. There is a lot to learn and many pitfalls along the way. I am offering a one-day workshop on e-marketing on the 3rd of December in Gauteng for exporters during which I will discuss online research, web-based marketing, e-marketplaces and online auctions, as well as search engine marketing. Interested? Read more by clicking here.[still to come]

Doing business in … Mauritius

Although Mauritius is not a large market for South African exports in absolute values, it is an important market for strategic reasons. Mauritius is both a member of SADC and COMESA, as well as being a signatory to the Cotonou Agreement and AGOA. Mauritius offers a key export processing zone within its Freeport for companies wanting to gain favoured access to the COMESA region and beyond. Mauritius also offers attractive incentives for international firms wanting to set up shop in the Freeport – click here [http://www.efreeport.com/default.aspx?Guid=370f9f7d-e335-4169-a018- e0d70ecdd76d&nm=WHY] and here [http://www.gov.mu/portal/site/Businesshomepagesite/menuitem.0a3af2db23dea1d0d335d51 0a0208a0c/?content_id=2dfdd575d1a88010VgnVCM100000ca6a12acRCRD] to learn more.

Mauritius has also been a long-time trading partner of South Africa, although South African exports to Mauritius have been somewhat erratic in recent years. However, 2008 showed promising growth (of almost 50%). South Africa only exports about R3296 million to Mauritius (barely 0,5% of the our total exports) and imports a miserly R540 million from the island state. The main export categories are vehicles, base metals and articles of base metals, mineral products, machinery and mechanical appliances, and chemical products. Together these five groups of products represented more than 70% of South Africa’s exports to Mauritius in 2008. The primary import from Mauritius is textile products (Mauritius is known as serious textile producer) – textiles represent almost 81% of South Africa’s imports from Mauritius. Nevertheless, Mauritius’s imports from the world have been growing at a steady rate suggesting that Mauritius represents a growing market for imported goods; one that South African exporters should not ignore. Mauritius imports a fairly wide range of products from South Africa, albeit in smallish numbers. The country could be a good starting market for smaller exporters wanting to cut their teeth on exports. It’s not far away; there are good relations between the two nations; South African products already enjoy some success in this market; and if exports don’t succeed, you can at least have a good holiday there.

. Doing business in Mauritius – World Bank Group [http://www.doingbusiness.org/exploreeconomies/?economyid=125] . Guide to doing business: Mauritius – Lex Mundi [http://www.lexmundi.com/images/lexmundi/PDF/guide-mauritius.pdf] . Doing business in Mauritius – Ocra Worldwide [http://www.ocra- mauritius.com/local/doing-business-mauritius.asp] . Doing business in Mauritius – DARE (an Indian perspective) [http://www.dare.co.in/strategy/going-global/doing-business-in-mauritius.htm] . Doing business in Mauritius – Government of Mauritius web portal [http://www.gov.mu/portal/site/Businesshomepagesite/menuitem.ec7f52d3396b395fbb b27610e2b521ca/ ] . Doing business in Mauritius – Baker Tilly International [http://www.bakertillyinternational.com/PDF/DoingBusinessinMauritius2004_05.pdf] . International tax and business guide: Mauritius – Deloitte [http://www.deloitte.com/view/en_GX/global/services/tax/international-tax/international- tax-and-business- guides/article/18a5d4070020e110VgnVCM100000ba42f00aRCRD.htm ]

Click here for more ‘doing business’ links: [put these links on a separate page – there’s too many]

. Mauritius – UK Foreign and Commonwealth Office [http://www.fco.gov.uk/en/travel- and-living-abroad/travel-advice-by-country/country-profile/sub-saharan-africa/mauritius] . Doing business in Mauritius – UHY [http://www.uhy.com/media/PDFs/doing_business_guides/Doing%20Business%20in %20Mauritius.pdf ] . Doing business in Mauritius – HLB International (select Mauritius from drop-down menu) [http://www.hlbi.com/index.php? option=com_content&view=article&id=37&Itemid=19 ] . Mauritius Chamber of Commerce and Industry [http://www.mcci.org/default.aspx] . Mauritius Government web portal [http://www.gov.mu/portal/site/Mainhomepage/menuitem.cc515006ac7521ae3a9dbea5 e2b521ca] . Doing business in Mauritius – Austrade (an Australian perspective) [http://www.austrade.gov.au/Doing-business-in-Mauritius/default.aspx ] . Doing business in Mauritius – HSBC [http://www.hsbc.co.mu/1/2/offshore/doing-global- business/doing-business-in-mauritius] . Board of Investment, Mauritius [http://www.boimauritius.com] . Doing business in Mauritius – Export.gov (a US view) [http://www.export.gov/mauritius/eg_mu_016637.asp] . Mauritius News – [http://www.mauritius-news.co.uk/index.php? option=com_content&view=article&id=209:doing-business-in-mauritius-a-practical- guide&catid=77:book-reviews ] . Mauritius Business Guide – World Services Group [http://www.worldservicesgroup.com/countries.asp?c=mp&country=Mauritius] . Business Culture in Mauritius – Business Culture Worldwide [http://www.businessculture.com/mauritius.html] . Youtube video on doing business in Mauritius – YouTube [http://www.youtube.com/watch?v=pTwQUsjV9bE] . Article: Mauritius moves into top 20 economies on overall ease of doing business – Ledna [http://www.ledna.org/en/blog/mauritius-moves-top-20-economies-overall-ease- doing-business] . Article: Doing business in Small Island developing states 2009: Mauritius is the 7th easiest place in the world to start a business – Enterprise Mauritius [http://www.enterprisemauritius.biz/ti/alerts/?p=79] . Doing business 2010: Mauritius – International Finance Corporation [http://www.doingbusiness.org/Documents/CountryProfiles/MUS.pdf] . Mauritius – globalEDGE [http://globaledge.msu.edu/countries/country.asp? countryID=113]

Wines of South Africa – one of South Africa’s premier Export Councils

Man, I’m impressed with this Export Council! They are probably one of the most active (just check out their calendar); their website is one of the best; they offer their exporters a range of useful information; and I think their successes speak for themselves. One might argue that they have an easy product to promote, but given the global competition for a slice of the world wine market, this is not so.

Wines of South Africa (WOSA) is a fully inclusive body, representing all South African producers of wine who export their products. WOSA, which was established in its current form in 1999, has over 500 exporters on its database, comprising all the major South African wine exporters. It is constituted as a not-for-profit company and is totally independent of any producer or wholesaling company. It is also independent of any government department, although it is recognised by government as an Export Council. WOSA's mandate is to promote the export of all South African wines in key international markets. Traditional markets include the United Kingdom, Germany Sweden and the Netherlands. More recently, WOSA has also been developing markets for South African wines in the United States, Canada, Russia, and Asia. WOSA is funded by a levy per litre is raised on all bottled natural and sparkling wines exported.

Click here [http://www.wosa.co.za] to learn more about this Export Council.

The French South African Chamber of Commerce and Industry

The French South African Chamber of Commerce and Industry (FSACCI) was founded in Johannesburg in 1979. Today, it is an active Chamber represented in Johannesburg and Cape Town with over 200 members with business interests in France and South Africa, providing you with access to a dynamic and powerful business network. The Chamber offers South African exporters interested in France with the opportunity of accessing commercial market research services. They have a regular e-newsletter which you can subscribe to and also organise regular events which you may wish to attend. To learn more about this bilateral chamber, click here. {http://www.fsacci.co.za]

“When it comes to international trade, are legal matters best left to the lawyers?” (by Ali Parry, ITRISA[www.itrisa.co.za])

Should those involved in international trade activities – whether it is exporting or importing products, or rendering services to the export/import community – steer clear of all the legal aspects associated with such activities, rather leaving these to the experts? Or should one become involved somehow? After all, the law is a complex domain requiring much specialist knowledge and expertise. To read more about this issue, click here. [link to article]

Don’t mess with foreign exchange – get the help of experts

Export X received an order of USD 100 000 for his products in July 2009 when the USD/ZAR exchange rate was trading at around ZAR8.30/USD. He worked out that he would be receiving R830 000 in three months time when his customer paid him. He took the view that with the rand mostly weakening, he might even get more rands by that time, which could assist him to make a slightly higher margin on his competitively priced products. Click here [link to this article] to read more about this sad tale!

Engaging employees to drive global business success

Mercer, one of the global leaders in HR, have undertaken a global "What's working" research project, the findings of which are encapsulated in an article entitled Engaging employees to drive global business success. In this article, Mecer suggest that on the surface, a workforce composed of employees who are satisfied with their jobs may seem like a desirable and even optimal state for an organisation. But, argue Mecer, in today’s global business environment, job satisfaction alone is not enough to help forge the link between employee performance and positive business results. They point out that over the last two decades, employers’ needs and interests have moved from creating conditions and programs that result in employees who are merely “satisfied” with pay, benefits and working conditions, to employees who are “committed” to the organisation and not considering a move, to those who are genuinely “engaged” in the work and mission of the organisation. For employers, engagement has become the search for the “Holy Grail” of the 21st century.

This insightful report can be downloaded by clicking here.

[A side column article under Case studies] Learning from exporters around the world: How do I break into China?

A Canadian company that licenses software for plant breeding and agronomy (and sells it in 40 countries) asks the Canadian Trade Commissioner Service what it takes to grow his business in China—a market that has eluded him so far. Click here to read the CanadExport article.

[A side column article under Case studies]

Expanding exports in tough times through innovation, quality and a global vision

Learn from the export success of Canadian exporter of bicycle helmets, Louis Garneau, who expanded his exports in tough economic times by focusing on innovation and quality, and which was supported by a global vision. Click here to view the 5.17 minute YouTube video.

Think London and take advantage of 1 year’s free office space

Do you see the UK as a target market for your exports? Would you consider London as a base in which to set up a branch? Then Touchdown London is for you. Touchdown London is a start-up service dedicated to overseas businesses who wish to establish themselves in London. It has been created, and is managed, by Think London, the foreign direct investment agency for London and is offered exclusively to Think London clients. You can get down to business immediately with their offer of a free desk for up to 12 months at the Touchdown London centres in the City, central and west London, and a subsequent 25% rent discount.

Interested? Then click here to learn more.

Something to read …

Introductory guide on trade remedies

Trade Law Chambers produces a useful introductory guide on trade remedies. They explain that trade remedies are legal instruments which businesses may use to safeguard themselves against unfair foreign competition. Typically trade remedies have as its aim the increase of tariffs (tax on imports) in order to make a certain market less attractive for foreign competitors. To download the full guide, click here. [get logo from their website]