TFSA works with producers in South Africa to improve compliance and linkage to new markets

South Africa economic profile

South Africa is the second largest economy on the African continent, with world class infrastructure and well-developed financial markets. With a highly developed agriculture sector, vast mineral resources and strong exports, South Africa is a premier investment destination.

Though ranked as a middle-income country, most South Africans experience glaring poverty and South Africa is ranked as the most unequal in the world. This dual economy is perpetuated by a legacy of exclusion and the nature of economic growth, which is not pro-poor and does not generate sufficient jobs. The persistence of the COVID-19 pandemic at the global and domestic levels will continue to constrain South Africa’s economic recovery. In addition, as economic activity restarts, pre-existing structural constraints, such as electricity shortages, will limit the growth trajectory.

In its National Development Plan 2030, South Africa identifies the export sector as an engine for faster, more inclusive, and job-intensive growth. The National Development Plan is targeting export volume growth of 6 percent a year—to achieve an annual increase in real GDP growth of about 5.5 percent and to help generate 11 million new jobs by 2030. South Africa has a relatively good core network of national economic infrastructure. The challenge is to maintain and expand its electricity, water, transport and communications infrastructure in order to support economic growth and social development goals. There is some concern that the state does not have the institutional or financial capability to implement the investment plans needed to finance infrastructure to the required scale. (Source: The World Bank)

TFSA sector work in South Africa

Priority sectors in South Africa include aquaculture, cosmetics and natural ingredients, fruits, nuts and vegetables, and green technology and renewables. All have a strong commercial base and an active sector, with green technology in particular enjoying immense opportunities for investment and growth. A large part of production is in rural areas that would greatly benefit from trade and export growth, as would the large number of women working in the cosmetics and natural ingredients sector. The aquaculture sector has suffered serious setbacks due to COVID related lockdowns practically shutting down the domestic market for high end seafood, and is in urgent need of boosting export to new markets, of which compliance and laboratory capacity are key barriers to growth.

TFSA works closely with CECOSA in the cosmetics and natural ingredients sector to reach producers with assistance to improve compliance and linkage to international buyers. In the rapidly growing green technology and renewables sector, key partners include industry association SAEEC, and key market players Atlantis SEZ and Green Cape, to develop industry guidelines and manufacturing processes.

Country representative

Happy Mohane

Mr Mohane is also a founder and Managing Director of Trade Afrika Farms, which is a company that operates grain and livestock farms in Gauteng and North-West Provinces. Prior to establishing the company, Mr Mohane was employed as a Senior Manager by the National Agricultural Marketing Council (NAMC) in South Africa, which is a state-owned entity with the legislative mandate of advising the ministry of agriculture on markets and economic issues. He successfully managed a Supply Chain Logistics Programme funded by the Flemish government, which offered an approach to integrate small agro-businesses into regional supply chains to help them seize opportunities for trade of horticultural and agri-foods products Prior to joining the NAMC, he was employed as a Research Specialist at ECI Africa, which was a South African based consulting firm owned by DAI. He was responsible for coordinating the operations of two Joint Regional Trade projects in Angola and Namibia. He possesses vast knowledge in enterprise development; economic development, agriculture, value chain analysis, business linkages, monitoring and evaluation and development finance.

Success Stories

“We need to gain a better understanding on the regulatory side in the green technology and renewables sector. It is critically important that we clarify the local regulatory framework and give investors the confidence and incentive to enter the South African market. The impact of us understanding that marketplace and the competencies of South African businesses means that we can increase our exports significantly.”
Chiboni Evans, CEO South African Electronical Export Council (SAEEC)
“The fact that TFSA is very cognisant of gender is really a hugely exciting part of the programme. There is the prospect of real benefits to women in trade, including rural women. If this programme has an impact on alleviating poverty by bringing more women into the value chains, offering them a better lifestyle, then that is a massive positive effect.”
Duncan Bonnet, Director Market Access and Research, Africa House
This process we undertook with TFSA of looking at what is needed to enter the European market has been a real eye opener for us, it really helped us highlight where our gaps are in terms of compliance with regulations and standards. Now we have something constructive to work towards.” Sally Paulet, Production Manager, HIK Abalone Farm, South Africa
Sally Paulet, Production Manager, HIK Abalone Farm, South Africa
“The aquaculture sector in Mozambique is very small and under-developed. TFSA is working with AMAQUA and other associations and organisations to put in some foundational blocks and build the value chain from there – none of this really exists, we pretty much have to build it all from scratch.”
Zerene Haddad, Social Impact Coordinator, Chicoa Fish Farm