By Odwa Mkentane
Western Cape exports to the United States have plunged by 41% over the past year, wiping nearly R7 billion from the value of goods sold to the American market. The sharp decline in exports such as fruit juice, grapes, citrus and yachts is raising concerns about the impact on local businesses, jobs and the broader provincial economy.
Exports from the province to the US dropped from approximately R17.31 billion in 2024 to R14.51 billion last year, with recent provincial reporting showing that the US fell from the Western Cape’s second-largest to fourth-largest export market.
Speaking to VOC, Exporters Western Cape chairman Terry Gale said the US remains a crucial market because of its size, strong demand for South African products and fast shipping links from Cape Town. He warned that finding alternative markets would not be easy. The organisation is calling for compromise and constructive diplomacy to protect trade, investment, tourism and jobs.
“I wish they weren’t, but unfortunately, they are. We have Wesgro keeping us updated on what’s happening in each trade lane. This is information I got from Wesgro, and it was updated at the end of August. I haven’t received the September figures yet, but if we don’t get this resolved, the situation is actually going to be a lot worse.
“The problem is that trade relations between South Africa and the United States are very strained. As you can see, there’s a lot of negativity, and the situation is incredibly volatile.
“As you probably have read, the US ambassador presented President Cyril Ramaphosa with a letter on 26 August outlining five things that the United States wants South Africa to address. Basically, they’re not impossible things. The problem is that South Africa has essentially said it is not going to do them.
“The attitude is, ‘Why must we be told what we must and must not do?’ I understand that South Africa is a democracy, and there are two sides to this. We are a democracy, but we also need trade. We’re not in a comfortable position like many other countries. We have massive unemployment, between 36% and 40%, depending on how it’s measured,” said Gale.
Gale further added that the Western Cape government, in particular, has earmarked exports as a growth area and a major economic opportunity.
“America was always our biggest trading partner from the Western Cape’s point of view, and also our most profitable market. That’s why these figures are so alarming. From a South African point of view, and I hate to say it, we need every possible export because exports create employment and bring money into the economy.
“Sometimes you actually have to bite your tongue and say, ‘Listen, we find that we cannot meet this particular demand, but how can we compromise? How can we talk to you without getting you backed into a corner?’” Gale said.
He concluded that another factor was that the country obviously has very good trade relations with Europe and the UK, but they are not growth markets for us at the moment.
“Americans come to Cape Town and spend money, which is exactly what we want. As you know, we are a very resilient nation. We have a broad market plan as well. But the thing is, we have this amazing market that we are now putting at risk.
“Yes, there are other markets. We still trade with Europe, and we’re doing a bit of business with Australia. Canada is also a very good market for us. But compared with America, these markets are not as big. That’s our big problem.
“Indeed. Unfortunately, we have to leave it there. We’ve tried desperately to solve the problem, but we couldn’t,” he said.
Photo: Pexels
