Business Day (Johannesburg)

South Africa: Lending Wings to Small Businesses

Nicola Jenvey

1 December 2008


Johannesburg — SEVERAL years ago the United Nations trade and development arm (Unctad) developed a programme to help small, medium and microenterprises (SMMEs) enter the global market. Known as Tradepoint and specifically geared towards less developed countries, the initiative establishes international trade facilitation points to assist emerging entrepreneurs.

Currently there are more than 115 Tradepoint offices across 70 nations and when Tradepoint SA Durban opened its doors in January, it became the second facility of its kind in SA. Offices also operate in Gauteng and the Nelson Mandela Bay municipality.

Each entity is a member of the international Tradepoint programme within the World Tradepoint Federation.

Tradepoint SA Durban GM Monique Labat says local and provincial government have identified SMME development as key to facilitating new economic growth, piggy-backing on the national economic policy for boosting international trade and exports. The facility enables entrepreneurs to post their business opportunities online while offering access to the Global Trade Directory System -- a comprehensive database providing registered companies with global visibility and new market penetration.

Currently more than 250 SMMEs from around KwaZulu-Natal are registered in the Durban programme. The office also offers a trade development and facilitation service for emerging exporters to effectively initiate and complete their export transactions. The consequence has been a host of export orders that Labat says would not have been possible without the establishment of Tradepoint SA Durban.

Among the more significant shipments was a R3,2m order from Italy for a range of avocado oils and biodiesel products from Durban-based Edmon Global.

Beadwork and traditional arts and crafts always have sound appeal on the international stage and Switched On Trade (based in Durban), Bambisanani Art and Craft (Bergville) and Inina Craft Agency (Eshowe) have concluded exports to Canada, Europe and Reunion Island.

Consequently, hand-crafted badges, pen-holders, personalised cutlery, hats, Zulu dolls, grass mats and fabrics have begun generating income for rural communities.

Labat says Inina -- an umbrella organisation for seven rural crafting groups -- secured an order for folders in Reunion. The full-time agent appointed for the Indian Ocean Islands (Reunion, Mauritius, Madagascar, Seychelles and Comores) was approached by the Reunion Post Office to adapt a Zulu grass mat product into a folder that will be used for launching a First Day edition stamp in the country before the end of the year.

Switched On Trade owner Agnes Mhlongo was approached by Canadian businesswoman Redina Borros while exhibiting at the Pietermaritzburg Royal Show and was subsequently commissioned to export goods to Redina's Ethical Emporium.

Although acknowledging these milestones, Labat says far more significant is the opportunity for long-term, sustainable exporting contracts, and both Switched On Trade and Inina are negotiating potential future shipments. Last month Tradepoint SA Durban exhibited at the Import Shop Berlin exhibition, thus opening the door for KwaZulu-Natal businesses to promote products to the German art, gift and homewares market.

Looking ahead Labat believes Tradepoint SA Durban has the potential to graduate the KwaZulu-Natal SMME sector to broader markets -- and ensure they outgrow its services to stand confidently among world traders.

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