South Africa - component A
Selected Sector and Institutions
Project Design Process
Results to be reached
Outputs and Activities
South Africa - component B
Selected Sector and Institutions
Results to be reached
Outputs and Activities
South Africa – Component A
Selected Sector and Institutions
Component A of the project aims at improving the export competitiveness of the Roiibos tea sector.
The project will work at improving the export competitiveness both in terms of quantity of product exported, as well as in terms of Added Value to the product, leading to an increased exported value and increased export returns.
The generated sector growth is also likely to have some positive impact on the entire economic and social structure of the Country. The increased product demand of the expanding sectors may lead to employment creation with direct ramifications on poverty reduction. Additionally, ripple effects will cascade down to the production level and thanks to the Code of Conduct developed by the South African Rooibos Council, improvements in the working conditions of the Rooibos tea farmers and producers are foreseen.
Project Design Process
Following the identification mission, organized in Sept 2010 in three different provinces in South Africa, it was decided to retain two potential export sectors: the Rooibos tea (Western Cape Province) and the Automotive Components Sector (Kwazulu Natal Province). In December 2010, the feasibility enabled the CBI/ITC team to visit SMEs, institutions, and representatives of the government at provincial level for both sectors in each of the provinces. The feasibility mission recommendation is to provide support through the NTF II to both sectors as they both have potential for export growth generating value added and new employment. The feasibility mission findings and recommendation were presented to the NTF II steering group meeting on 18 January 2010, and were endorsed to move into project formulation.
Results to be reached
Impact
Contribute to poverty reduction in South Africa through the improved export competitiveness of the two selected sectors: Automotive and Rooibos teas
Outcome
Increased value addition and exports of products and components related to the two selected sectors: Automotive and Rooibos tea. (Decide whether to split into 2 outcomes)
Outputs and Activities
OUTPUT 1.1: A Rooibos Export Development Action Plan (REDAP) developed and implemented
The Rooibos tea Action Plan will concern the entire Rooibos tea sector involving stakeholders operating at the various level of the Value Chain (from producers to processing companies and exporters). It will be based on a comprehensive diagnostic of the sector, as well on a more specific analysis targeting the German market. The Action Plan will delineate the specific tasks to be accomplished in terms of market entry, product development (flavoring, tasting, testing certification) pricing, distribution and promotion. It will also clearly identify the specific roles and responsibilities of each actor, as well as define a feasible implementation timeframe.
To see the full and detailed list of activities leading to Output 1, go to the Results Framework.
Following the results of the inception phase, and the potential go ahead of the NTF II Steering Group, the project will move forward to the implementation phase.
OUTPUT1.2. Increased Value Added
Since most of the Rooibos tea in exported in bulk (in 18 Kg bags), the project will develop specific actions aimed at increasing its added value. This will be done mainly by:
i. improving its quality;
ii. Developing an added value packaging meeting the specific market requirements identified by the Action Plan.
- Quality: Actions will aim at improving the quality of the product and/or at ensuring they meet relevant quality standards.
- Packaging: specific packaging will be designed for the product to be sold with Added Value (eg: 100g boxes instead than the current 18 Kg bags). The new packaging will take into consideration the results of the inception phase and the market analysis carried out, to meet the needs of the targeted importers as well as the taste of the new potential customers.
OUTPUT 1.3 Product branding and export marketing strategy developed
Based on the results of the inception phase a new marketing strategy and product branding will be developed, targeting the new identified potential markets.
- Develop a specific marketing strategy for the product;
- Brand the Rooibos tea to target new customers. Specific characteristic of the products, such as its health benefit, its Geographic Indication or the socio-economic standards met by its producers may be considered as possible levers for its branding.
South Africa – Component B
Selected Sector and Institutions
Component B of the project aims at improving the export competitiveness of the automotive sector.
Since the sector is characterized by high value-added products and labour-intensive processes, it’s expected that the project is likely to have a positive impact on employment creation as well as indirect ramifications on poverty reduction.
As recommended by the Feasibility Mission report, dated January 2011, the project will start with a 6 months inception phase.
Results to be reached
Impact
Contribute to the reduction of chronic unemployment in South Africa through improved export competitiveness.
Outcome
Increased value addition and exports of products and components related to the Rooibos automotive sector.
Outputs and Activities
OUTPUT 1.1: An Automotive Components Export (ACE) Action Plan developed and implemented
The Action Plan for the automotive sector will target specifically a group of companies with a high export potential (export fit or export ready companies[1]). To identify the high export potential companies the project will facilitate the Durban Automotive Cluster (DAC) or the National Association of Automotive Components and Allied Manufacturers (NAACAM) to develop a GAP analysis for small automotive component manufactures. Following the GAP analysis, an Action Plan will be drafted to define the actions required to upgrade the knowledge and skills of selected companies and appraise which 1st and 2nd tier companies who will benefit from the NTF II Project. The final selection of the beneficiary companies will be taken collectively in a strategic stakeholders’ conference.
OUTPUT1.2. Automotive TSI services strengthened
The Feasibility Study highlighted that the majority of 2nd and 3rd manufacturers do not control the basic business process that qualify them to be export fit. The project will hence develop a tool kit for GAP analysis and train some automotive TSIs (to be selected) in assisting small manufacturers to apply the toolkit to their companies and in making a GAP analysis. TSI will be strengthen further to provided additional services, as per the results of the the inception phase Action Plan.
OUTPUT1.3. Increased export fitness and export readiness of small scale automotive components manufacturers
The project will develop activities aimed at improving the capacity of small automotive components manufactures and their production operations. This might include engineering/tooling, purchase, and finance, material control, planning manufacturing, warehousing and expedition. The specific activities to be implemented will be detailed in the project work plan (see output 1.2.). A consolidation of the Supply Chain and Value Chain may also be envisaged.
[1] The term « export fit » indicates the capacity of a company to control the basic business processes (engineering, purchase, finance, planning, manufacturing…) the term “export ready” indicates a company who, beside the capacity to control all processes, has already developed its products and has a market to export them to.