Western Cape Investment and Trade Promotion Agency (WESGRO) – Trade Fact Sheets
Mthente was commissioned by the Western Cape Investment and
Trade Promotion Agency (WESGRO) to compile trade fact sheets for Angola
and Brazil. WESGRO is the official agency that handles relations
between local exporters, foreign importers and investors who have
chosen the Western Cape and Cape Town for business. WESGRO also works
hand in hand with the South African government, the City of Cape Town,
Business, Labour, District Municipalities as well as with rural
authorities.
WESGRO contracted Mthente’s team of economists and trade experts to look specifically at the food and beverages sector in Brazil and the consumer goods, cosmetics and toiletries sector in Angola. Both these locations present lucrative opportunities for South African exporters and investors but there is an ongoing need for information to guide business decision making in international trade as well as business in general.
In developing the Trade Fact Sheets, Mthente drew from its extensive experience in analysing and developing trade and investment policy strategies as well as working on emerging economies and sector studies to produce fact sheets that highlight opportunities for exporters and investors alike. The overriding goal for Mthente researchers was to create an up to date information tool that allows for capitalisation on new opportunities and market expansions.
The relevance and significance of the specified sectors in Angola and Brazil, together with the potential opportunities for Western Cape exporters that are available in these sectors, is outlined briefly below.
The food and beverages sector is a key sector in the Brazilian economy. In 2008, Brazil’s imports of consumer-oriented food products totalled US$2.5 billion, representing an increase of 26.5 percent over the equivalent 2007 figure. In Brazil, the retail sector is considered to be the major channel for food and beverage distribution, with approximately 80 percent of distribution taking place through retail stores. The food industry in Brazil is regarded as very competitive, owing to the fact that it is well developed with the presence of a growing number of major multinational companies. In addition, exporters in the Western Cape must compete with exporters from the Mercosul member states (Argentina, Paraguay and Uruguay) that enjoy duty-free access to the Brazilian market, as well as Chilean exporters, who face a reduced duty rate for their products. Despite this, the sector in Brazil offers significant opportunities for exporters, particularly for food and beverage products targeting the high-end consumer market and the market for luxury products.
In contrast, Angola boasts a significantly less developed market for consumer goods, cosmetics and toiletries. Nevertheless, the ongoing restructuring and modernisation of the industrial and manufacturing sectors of the economy – following the end of the civil war (1975 to 2002) – has created significant business opportunities in many areas of economic activity, including consumer goods. Furthermore, major investments are planned in a number of the country’s key industrial sectors, including beverages and food processing.
WESGRO contracted Mthente’s team of economists and trade experts to look specifically at the food and beverages sector in Brazil and the consumer goods, cosmetics and toiletries sector in Angola. Both these locations present lucrative opportunities for South African exporters and investors but there is an ongoing need for information to guide business decision making in international trade as well as business in general.
In developing the Trade Fact Sheets, Mthente drew from its extensive experience in analysing and developing trade and investment policy strategies as well as working on emerging economies and sector studies to produce fact sheets that highlight opportunities for exporters and investors alike. The overriding goal for Mthente researchers was to create an up to date information tool that allows for capitalisation on new opportunities and market expansions.
The relevance and significance of the specified sectors in Angola and Brazil, together with the potential opportunities for Western Cape exporters that are available in these sectors, is outlined briefly below.
The food and beverages sector is a key sector in the Brazilian economy. In 2008, Brazil’s imports of consumer-oriented food products totalled US$2.5 billion, representing an increase of 26.5 percent over the equivalent 2007 figure. In Brazil, the retail sector is considered to be the major channel for food and beverage distribution, with approximately 80 percent of distribution taking place through retail stores. The food industry in Brazil is regarded as very competitive, owing to the fact that it is well developed with the presence of a growing number of major multinational companies. In addition, exporters in the Western Cape must compete with exporters from the Mercosul member states (Argentina, Paraguay and Uruguay) that enjoy duty-free access to the Brazilian market, as well as Chilean exporters, who face a reduced duty rate for their products. Despite this, the sector in Brazil offers significant opportunities for exporters, particularly for food and beverage products targeting the high-end consumer market and the market for luxury products.
In contrast, Angola boasts a significantly less developed market for consumer goods, cosmetics and toiletries. Nevertheless, the ongoing restructuring and modernisation of the industrial and manufacturing sectors of the economy – following the end of the civil war (1975 to 2002) – has created significant business opportunities in many areas of economic activity, including consumer goods. Furthermore, major investments are planned in a number of the country’s key industrial sectors, including beverages and food processing.