Strengthening Western Cape-Portugal Trade Relations

A delegation from Wesgro paid a visit to Portugal from 29 July to 01 August 2024.

Wesgro is the official tourism, trade and investment promotion agency for Cape Town and the Western Cape. The organisation assists investors and businesses looking to branch out into the Province.

The delegation consisted of:

• Ms Wrenelle Stander, CEO Wesgro
• Ms Jean Schletema, Chief Marketing & Innovation Officer
• Ms Thiru Naidoo, Senior Export Promotion Manager

The main aim of the visit was for Wesgro to engage and collaborate on possible opportunities for tourism, trade and investment between Portugal and Cape Town, as well as learning more about Portugal’s climate strategy, water resilience and green hydrogen strategies and initiatives.

They met with Portuguese companies and other trade and investment stakeholders in Portugal, including CCILSA, the MCA Group, Turismo Portugal, visited the Port of Sines, Agência Nacional de Inovação, Portugal Ventures and AICEP.

The visit was planned with assistance from AICEP, the Portuguese Trade & Investment Agency, and the South African Embassy.

Partnership aims to boost economic collaboration in key sectors including agriculture, renewable energy, and ICT.

In a significant move to bolster trade relations between the Western Cape and Portugal, Wesgro, the official tourism, trade, and investment promotion agency for Cape Town and the Western Cape, has signed a memorandum of understanding (MOU) with Agência para o Investimento e Comércio Externo de Portugal (AICEP), the Portuguese government agency responsible for attracting investment and promoting export growth.

The MOU aims to develop trade and economic relations between Cape Town, the Western Cape, and Portugal by promoting projects in sectors of mutual interest. These include agricultural production, renewable energy, professional services, biotechnology, the medical-pharmaceutical industry, information and communications technology, logistics, and water and sanitation. This cooperation could manifest in joint efforts to organise exhibitions, buyer-seller meets, symposiums, seminars, workshops, and product sample displays.

"Portugal and South Africa enjoy cordial relations, and this MOU represents a significant step forward in deepening our economic ties," said Wrenelle Stander, CEO of Wesgro. "The Western Cape is open for business. This agreement with AICEP is crucial for attracting, facilitating, and supporting foreign direct investment (FDI) into our province while expanding our presence in international markets. Strong, mutually beneficial partnerships are essential for leveraging opportunities to accelerate economic growth and create much-needed jobs," she added.

South Africa and Portugal enjoy robust bilateral relations, with prominent Portuguese firms such as logistics companies Rangel Group and Transitex operating in the country. Tourism between the two nations has also seen substantial growth in recent times, with over 16,000 Portuguese tourists visiting South Africa in 2022, marking a 172.10% increase from 2021. The Western Cape welcomed 5,488 Portuguese tourists in the same year, a 151.74% increase from 2021, and a 42.13% recovery compared to pre-pandemic levels in 2019.

Citrus fruits were the Western Cape's leading export product to Portugal in 2022, valued at R426.21m and accounting for 41.85% of the province's total exports to the European nation. An estimated 38.56% of South African citrus fruits shipped to Portugal in 2022 originated from the Western Cape. South Africa's exports to Portugal in 2022 totalled R3.41bn, a 20.43% increase from 2021, while imports from the Iberian country amounted to R6.19bn, a 33.85% year-on-year rise.

The MOU sets the stage for a broad spectrum of activities, including the exchange of non-confidential economic and commercial information, promotion of joint ventures, and the organisation of trade fairs and exhibitions. Both parties are committed to building mutually beneficial relationships, particularly for small and medium-sized enterprises in both regions.

Financial and resource commitments for specific projects and activities under the MOU will be mutually agreed upon, with each party bearing its own costs. They will also seek financial support and donations from national and international organisations and partners as needed. The MOU will be in force for an initial period of five years, with the option for renewal by mutual agreement.

"This partnership establishes a strong foundation for improved economic relations and expanded business opportunities between the Western Cape and Portugal. This collaboration is poised to deliver substantial benefits, driving economic growth, innovation, and mutual prosperity," concluded Stander.