BREXIT ‘WILL NOT HURT TRADE WITH SA’
Heartening message for EL’s motor industry and fresh produce exports
UK officials in East London say it will be business as usual after Britain’s EU breakaway
UK government officials were in East London on Wednesday for an economic link and investment briefing, and used the opportunity to assure Eastern Cape officials that despite the Brexit “do we leave, or don’t we” ructions regarding Britain’s exit from the European Union (EU), trade with SA would be business as usual.
This was a heartening message for East London’s motor industry and fresh produce exports, particularly citrus, said Malusi Mahlulo, director of international relations in the Eastern Cape Premier’s Office.
Deputy high commissioner Ben Llewellyn-Jones said trade deals in place with the EU would continue in the UK after March 21, the exit date being pursued by British Prime Minister Theresa May. But he cautioned that should there be any problems or delays with the exit strategy, SA needed to cement policy regarding bilateral trade, which the UK and SA are currently negotiating.
It would not be in either of the countries interest to have the negotiations still hanging on exit day. Although land expropriation is currently a sensitive issue in South Africa, it does not feature high in UK investor concerns, said Llewellyn-Jones.
“The UK government supports the land transfer issue.
“Businesses’ concerns hinge around repatriation of profits, ease of entry for skilled workers, efficient bureaucratic set up procedure, consistent and affordable power and security, both physical and for continued operations. In addition, for UK investment into the region to succeed, investors must have a thorough grasp of how black empowerment would work in any business relationships.
“Expropriation was not to harm or create said Mahlolo.
“In fact we are going out of our way to lower any investment risk. If most of our landless people get land, then that actually intended uncertainty,” guarantees long-term stability, and it is an issue that South Africa must address once and for all.”
The UK is in the throes of organising an investment tour of SA early in 2019, which will give local business and government a chance to sell the area. Llewellyn-Jones felt that East London and the previous Ciskei and Transkei had several exciting aspects, particularly around heritage, coastal developments and tourism.
The investors would be free to choose their destinations within SA, so it was up to the Eastern Cape, BCM and the private sector to market their offers before the tour was finalised.
Economic Development, Environmental Affairs and Tourism senior manager Oyama Makalima said the progress on the N2 road would facilitate access to Eastern Cape’s biggest populations.
The proposed harbour at Port St Johns would also stimulate interest. The two investment “One Stop Shops” in East London, opening early in 2019, would smooth the bureaucratic process and ease entry for investors.
Dr Mfumdo Maqubela, director of technology at the Department of Rural Development and Agrarian Reform, said Brexit created an ideal opportunity to revisit some of the export rules imposed on certain agricultural goods, especially citrus. Llewellyn-Jones said a direct dialogue was essential but stressed that high standards would remain in place. Maqubela said the hemp industry was gaining strength and would be a good investment opportunity.
If most of our landless people get land, then that actually guarantees long-term stability