Category: May 2019 Newsletter

Current trade conditions as reflected by the Trade Activity Index in April 2019, are marginally down from March 2019, but also slightly up from April 2018. The seasonally adjusted Trade Expectations Index for April 2019 was down from the previous month, and down from last year.

Respondents listed the hive of political activity and anxiety related to the then-upcoming 8 May 2019, coupled with the effects of public holidays on trading days, as matters that impacted the trade conditions in April 2019. The widely held view that the then-upcoming elections are responsible for the absence of such adverse events like load shedding when problems at Eskom persist and creates a cautious approach to immediate and short term business decision making, as businesses hedge against a possible risk that, now that the elections are over, adverse events would return. This caution is responsible for the trend of decrease in almost all the activity sub-indices to be uniform, moreover, in line with expectations in a month with lots of holidays.

Pressure on prices remained as indicated by lower sales and input price sub-indices. The decline in sales and input prices is expected to continue over the next six months notwithstanding 72% of respondents still anticipating input costs to rise. 34% of respondents were positive on future supply deliveries. The employment sub-index has dropped from 39 in March 2019 to 36 in April 2019. 35% of respondents indicated that they intend to employ more staff in the next six months.

When business exports products, there are many pitfalls and advantages for both the exporter and the importer. There appears to be a trade language all on its own. One of the proven traditional ways that an importer can save on import tariffs for products manufactured in South Africa linked to specific Trade Agreements, is to obtain a Certificate of Origin.

Chambers have been certifying products from manufacturing countries since the early 1920s. The purpose of the Certificate of Origin(CoO) is to issue a certificate that attests that the product is wholly owned South African, or has been substantially modified by the local manufacturer. Only Chambers certify CoOs. Manufacturers are able to issue a document that attests that the product is South African, but it does not have the impetus of a CoO.

Then there are the agreed import and export terms, such as EXW (Ex works), FOR, (Free on Rail), DAP (Delivered at Place) and FCA (Free Carrier). These terms are Incoterms® 2010 by the International Chamber of Commerce and are the rules for the use of domestic and international trade terms. If you use the wrong word, it could cost you dearly as it would affect your insured product or final payment terms. It is in the interest of a business to know and have the Incoterms® manual with them. MCCI hosted an export and Certificate of Origin course on 23 May 2019, and have the Incoterms® manual available for sale.

Another critical fact to note the tariff heading of your product and the impact it could have on the import price. If you are a local company and uses Freight Forwarders, they would approach harbour Chambers such as Cape Town, Durban or Richards Bay for the CoO’s, but you can come directly to the MCCI for our electronic CoO, and save on the cost of a CoO.

MCCI has a fully accredited CoO service that is always available. This CoO has been issued by a Chamber who has institutional knowledge and is a body of integrity. Should you be interested in finding out if you could save money on your CoO, or if you need a CoO to benefit from the Trade Agreements, or would like to purchase an Incoterms® manual, contact Valerie Pienaar at businesslink@middelburginfo.com.

Are you a small local business? Do you need help connecting to other businesses? Do you need to start networking?

The Business Linkage Centre (BLC) has a limited amount of subsidized membership available for 2019.

The services that are included in the membership are: monthly networking functions, tender information, member to member referrals, discounts on marketing and advertising mediums, business skills training and tender information.

The BLC links small companies with corporate companies through its local procurement database which enables corporates to access local suppliers. Businesses are encouraged to register on the database as it serves as a great marketing platform at no fee.
To register on the procurement database, please email businesslink@middelburginfo.com.

The Middelburg Tourist Information Centre makes it a point to exhibit every year at this premier Tourism Exhibition event. We promote our area to the broader tourism market. Representatives from the Tourist Information Centre attended this event with us.

Africa’s Travel Indaba was hosted in Durban on the 2-4th May 2019, this event is one of the largest tourism marketing events on the African calendar, and one of the top three ‘must visit’ events of its kind on the global calendar. More than 1 747 buyers, 1 120 exhibitors showcased a range and diversity of products from the continent, and no less than 22 African countries and 80 countries globally represented at this year’s travel trade show.

We also used this opportunity to update our information on the other provinces and international attractions. Contact us on 013-243 2253 or info@middelburginfo.com, visit the office to see all the new brochures so that we can assist you in planning and booking your next holiday.

We are living in an age where social-media powers many of the connections we make. Whether it’s for personal use or for business use – it has moved us into a whole new direction of communication. Just imagine for a second what it would be like if there were no platforms that allow people to connect.

The reach and influence that social media has is a valuable treasure in the business and trade industries. It is slowly taking over as one of the leading channels for marketing and advertising.

The Middelburg Chamber of Commerce and Industry is having a very successful year thus far in terms of our social media reach. We’re offering new opportunities for members by sharing event photographs, businesses, opportunities and so much more on our social media channels.

Give us a like on Facebook and be up to date with what we have to offer: https://www.facebook.com/MburgChamber/
Follow us on Twitter and tweet with us: https://twitter.com/MiddelburgI
To find out what we have to offer via our social channels email – design@middelburginfo.com or contact Adriaan on 013 243 2253