Capital equipment and project sector representative council the South African Capital Equipment Export Council (SACEEC) expects “little difference” with the new administration at the Department of Trade, Industry and Competition (dtic).

SACEEC CEO Eric Bruggeman explains that he does not expect there to be any changes in the immediate term, as the staff complement remains largely unchanged, adding that new Trade, Industry and Competition Minister Parks Tau has to “find his feet” as well.

Bruggeman comments that he hopes that the new administration will be “more serious” about leveraging business opportunities overseas while increasing support for local manufacturing. 

“One of the problems is that any two-man band can register a company and import as an empowered company, which, in turn, limits the opportunities to bid for or obtain orders for credible operations and manufacturers,” he elaborates.

Bruggeman notes that this will hopefully change, should the dtic start implementing rules and regulations. He explains that there are enough rules and regulations in the country’s manufacturing industry, “the laws just need to be applied by all concerned, and a focus needs to be placed on enforcement”, states Bruggeman.

Further, he emphasises that should it be economically viable for companies to buy locally then they should do so rather than importing goods in this manner.

He recounts that in 2002, when SACEEC had still been considered a mining cluster, the dtic, among others, was involved in its evolution into an export council.

“From there, we have been advising the dtic. We provide them with a lot of information on a monthly basis regarding where and what companies are exporting,” explains Bruggeman.

The council also advises the department on export volumes, where there are growth prospects, whether there is employment growth, and which countries’ exhibitions and events South African companies or organisations should consider attending.

Exhibition Training

SACEEC also specialises in training people on the basics of exporting and, of late, the pitfalls of exhibition planning and executions, exhibition and stand behaviour training, as well as basic export marketing and promotions, among other skills sets.

The council, along with its partners, will also assist new members with entry into new markets, by trying to fast-track the introduction cycle for its members, thereby ensuring that these companies can achieve success within a shorter period.

At exhibitions, SACEEC will arrange for the accompanying companies to be present at pre-arranged seminars or events. The council will also arrange for translators at shows where English is not the common or national language.

“This is an all-important function. I have seen this more often than I would want to, where a company attends an exhibition and all the brochures and information are in English and their customer cannot, read, write or speak it,” stresses Bruggeman.

He points out that, what usually happens in these instances is that the exhibitions and organisers are blamed, leading to attendees labelling the event as “poor” and/or “a waste of time”, and often leaving potential customers feeling that the event or individual stand preparation was insufficient.

Additionally, SACEEC is heavily involved in the supply chain with regard to installation, service and the repair of clients’ products in foreign countries – all essential for exporters.

The council also has partners that specialise in global logistics and freight, which Bruggeman highlights is a “crucial factor” when exhibiting products, as timing is crucial.

“SACEEC is also involved with capacity building in different countries, as we believe that companies should not simply export without getting involved in and giving back to that country, either by using local companies and local suppliers and/or by training local people about their product,” states Bruggeman.

He elaborates that exporting is all about building relationships between different countries and showing the utmost respect for people, cultures, the environment and the local laws.

Easing Cash Flow

According to Bruggeman, finance plays a large role in exporting products around the world and cash flow can become problematic, hence SACEEC has formed a partnership with Absa bank.

He points out that the bank is in the processes of establishing different financial packages to assist the council’s members.

“We strongly believe in good strong partnerships, both locally and internationally, as we have learnt that one cannot attempt such a huge task without trust, humbleness, honesty and respect, with all our partners involved,” concludes Bruggeman.