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Joburg focuses on service industries

October 3, 2006
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(Business Day (South Africa) Via Thomson Dialog NewsEdge) Joburg focuses on service industries Help is at hand for small businesses that are eager to enter the export arena, writes THE City of Johannesburg has launched a project to encourage exports among small medium and microenterprises (SMMEs). The project is part of the municipality's 2030 initiative, a long-term plan to promote inward investment and increase the volume and value of exports. In terms of the initiative, Johannesburg's economic landscape will, by 2030, no longer be dominated by mining and manufacturing, but by the services sector. The initiative, commonly known as Joburg 2030, aims to turn the city into an export-orientated hub. The city has awarded a two-year contract to the Johannesburg Chamber of Commerce and Industry (NafcocJCCI) to help small businesses to produce and deliver exportable products and services. The chamber's services will include gathering market intelligence, facilitating product and export development and providing trade-related training and mentoring. Parks Tau, a Johannesburg councilor, says the city wants to establish a trade and investment programme to create and disseminate information related to export development. He says the city will also seek to support current and potential exporters while facilitating local and foreign investment. Tau, a member of the council's mayoral committee for community development, says the economic development unit of the city is formulating an initial trade promotion and investment facilitation strategy. Exporting can be a daunting prospect for some SMMEs. Concerns about language and cultural problems, mountains of paperwork, the extra time and financial investment involved and worries about getting paid on time, may put many companies off the first hurdle. However, even though trading internationally should never be entered into lightly, there are many markets that can afford SMMEs a relatively easy passage into the world of exporting. NafcocJCCI CEO Keith Brebnor says the municipality chose the chamber as its implementation agent because of its role in the facilitation of international trade JCCI offers training courses on international trade. He says more than 5000 individuals have completed the chamber's diploma courses on import and export management since 1989. The World Trade Point Federation, a Geneva, Switzerland-based nongovernmental organisation, has established about 100 trade points in 90 developing countries. Trade points are intended to promote the participation of small businesses in international trade, and the programme is co-ordinated in SA by the trade and industry department's Small Enterprise Development Agency. JCCI is the official trade point operator for Johannesburg.



The Johannesburg trade point targets entrepreneurs in the informal economy who have the potential to penetrate export markets or the capacity to increase their existing trade links. Tau says the support initiative starts with a diagnostic exercise aimed at establishing whether a company has the products, services and resources to export successfully. The second stage entails the development of an export strategy. Key questions such as which markets offer the greatest opportunity will be analysed and discussed with the SMME, Tau says. The next stage will be to offer training to the exporters.

We are looking at providing basics on exporting and on export marketing. Finally, NafcocJCCI will be on hand to offer an after-care service to the exporters.

Copyright 2006 Times Media Ltd.. Source: Financial Times Information Limited - Europe Intelligence Wire.


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