PRESENTATION BY MCV INTERNATIONAL FORWARDING (PTY) LTD ON ITS EXPORT PROMOTION STRATEGY

BIASED TO SMMES AND CO-OPERATIVES FOR ECONOMIC TRANSFORMATION

CONTRIBUTORS TO ECONOMIC DEVELOPMENT & JOB CREATION

• Key elements for employment creation are:– Promoting exports and

competitiveness– Increasing South Africa's

Global Market share (NDP)

– SMMEs play a major role in Job creation and Economic Development.

MAJOR CHALLENGE AFFECTING SURVIVAL OF SMMEs AND CO-OPS

• Economic Globalisation– Domestic Markets are becoming more

saturated– Foreign competitors are entering the

South African Market and outcompeting SA businesses.

– South African Economy gets exposed to Transfer Pricing

• Co - ops and SMMEs, as a key factor to Economic growth must develop a global culture, gain International experience and look for business elsewhere in order to succeed.

SMME AND CO-OPS IN THE INTERNATIONAL MARKET

• Small businesses are busy running their day to day operations and do not consider exporting.

• Due to less financial resources and staffing limitations, small enterprises often suffer from managerial inexperience with international markets.

• They have limited global information-gathering capabilities.

• They lack multicultural and Global competence.

SA EXPORTS SHARE

SA EXPORTS vs IMPORTS

MCV INTERNATIONAL BRINGS A SOLUTION TO GLOBALISATION CHALLENGES

• To increase SA share in the Global Market, MCV provides Export Management Services as a solution to small business globalisation

• We act as an external Sales Department for domestic companies in the International market

OUR SERVICES• Export readiness test– Product fitness to export

markets– Determination of company

capacity to meet international demand

– Determination of company managers understanding of activities

– Recommendation and monitoring

OUR SERVICES

• Market Research and Analysis– Market size– Major players in the market– Entry strategy– Economic stability– Political stability– Accessibility to the market– Potential growth– Market risks

OUR SERVICES

• Export Plan development– Market entry feasibility

– Creation of market entry strategy

– Evaluation of potential risks

– Evaluation of capability of the business to serve international market

OUR SERVICES• Market entry

– Trade partner prospecting and analysis

– Market visits– Appointment of distributors– Negotiation of terms– Contract implementation– Confirmation of first order

OUR SERVICES• Trade Partner Management

– Managing and soliciting future orders

– Management of shipping and Customs Clearance

– Additional market visits– Sourcing Preferential trade

certificates– Relationship management– Monitoring required alterations

OUR REQUEST TO THE COMITTEE1. We request endorsement of our services so that we get

support from the private sector

2. We request support from Government through subsidising the services that we provide in order for SMMEs and Co-ops to make use of the services.

3. The committee must consider introducing legislature that will encourage formation of Export Management Companies in order to FastTrack export development and job creation in South Africa

BENEFITS OF USING OUR EXPORT MANAGEMENT SERVICES

• Export management companies play a major role in export promotion and economic development.

• Examples are the introduction of General trading companies (Sogo Shoshas) in Japan, the Introduction of Export Trading companies through the Export Trading Companies Act in USA etc.

BENEFITS OF USING OUR EXPORT MANAGEMENT SERVICES

• Number of companies and Co-ops that meet the International Standard requirements

• Number of Companies and co-ops that are Global Gap accredited

• Number of companies and co-operatives that enter the International market

• Businesses able to meet International demand through Joint Exporting.

• Reduction of Logistics costs in that way increasing competitiveness of South African Products in the Global Market.

ASSISTANCE FROM THE SAAFF

• The SAAFF has proposed to facilitate an industry specific fund

• The fund will be composed of 3% NPAT for Enterprise Development; 2% NPAT for Socio Economic Development and the Equity equivalent contribution from Multinationals

• This fund is earmarked among other things to support export development

• The support from Export management companies will ensure that SMMEs and Co-Ops access this fund and utilise it effectively.

CONCLUSION

• Let us work together to assist SMME and Co-Operatives enter the international market as in that way more jobs will be created and we will combat poverty.

• Endorse and support the services of MCV

• Consider introducing legislation that will encourage formation of Export Management Companies