Positioning the Western Cape in a shifting global economy
The province is increasingly focusing on international partnerships, trade engagement platforms and coordinated economic development efforts to support inclusive and sustainable growth, while expanding export opportunities and attracting investment into key sectors.
With this in mind, recent diplomatic engagements brought together senior partners from across Africa, ASEAN, and Europe, including Ambassadors, chambers, and businesses, to define shared priorities and identify opportunities to strengthen relations. Initiatives such as the Made in the Cape Hosted Buyers’ Programme also aim to translate these priorities into action by connecting international buyers directly with Western Cape producers and exporters.
Africa: Boosting access
These efforts are grounded in a clear reality: the opportunity across Africa is significant, but still under-realised. Between 2016 and 2025, South Africa's exports to African Union member states grew from $21.50bn to $31.16bn, with a trade surplus of $21.37bn recorded in 2025, the highest in a decade.
Yet intra-African trade accounts for only about 16% of total continental trade, compared to 59% in Asia and 68% in Europe, underscoring the scale of the untapped potential.
The core challenge is friction. Beyond tariffs, small businesses navigate heavy bureaucracy, goods are delayed at border posts, and entrepreneurs face outdated visa regimes. The continent continues to export largely primary and semi-processed commodities, with limited value captured locally.
To address this, the African Continental Free Trade Area must become fully operational. It needs to function as a practical system that works for the poultry farmer in Kenya, the freight forwarder in Lagos, and the tech start-up in Cape Town, transforming fragmented markets into a single, investable continental platform.
Against this backdrop, global interest in Africa is accelerating. China is investing in DRC infrastructure linked to cobalt and copper; the US and EU are backing the Lobito Corridor connecting Zambia and the DRC to Angola’s Atlantic port; South Korea is deepening ties with Ghana, Malawi, and Zimbabwe; while India, the UAE, and Turkey continue expanding their footprint.
The question is whether this momentum will be leveraged to build African capability and move beyond commodities into manufacturing, pharmaceuticals, green energy, and innovation.
Execution hinges on practical enablers. Engagements with African partners highlighted the importance of regulatory clarity, efficient customs systems, and reliable market intelligence. When these are in place, smaller firms are able to compete with confidence across borders.
Southeast Asia: Scaling growth
Southeast Asia has become an increasingly important focus. ASEAN comprises 11 member states and roughly 700 million people, with a combined real GDP of approximately US$4 trillion. Rising consumer demand, expanding manufacturing capacity, and a focus on food security and green inputs make it a natural partner for South Africa.
Deepening this relationship will be key to unlocking the scale needed to support growth and job creation objectives. Singapore and Malaysia consistently ranked among South Africa's top 40 global trade partners between 2016 and 2025.
At a provincial level, the Western Cape records trade deficits with most ASEAN countries: deficits that signal where demand exists and where local capability can expand, creating opportunities for joint ventures, technology transfer, and value-added exports.
Sustained engagement is now translating into structured growth. Over the past three years, engagement between the ASEAN diplomatic community and Western Cape stakeholders has increasingly focused on strengthening tourism, trade and investment ties between the regions.
Europe: Investor confidence strengthens
Europe remains a central pillar of South Africa’s trade architecture. In 2025, South Africa exported $22.78 billion in goods to the EU, reflecting the depth and stability of this long-standing partnership.
This relationship is evolving to align with future industries. The 2025 EU–South Africa Clean Trade and Investment Partnership, alongside Global Gateway investments targeting green hydrogen, critical minerals, and the energy transition, positions the Western Cape to build on its existing strengths while integrating into emerging clean-tech supply chains.
Progress on reforms is reinforcing investor confidence. The EU’s decision to remove South Africa from its high-risk financial list signals tangible advancement in the country’s reform agenda, strengthening its attractiveness as a reliable and competitive investment destination.
Building partnerships
A common thread runs through these engagements. Growth depends on coordination, credibility, and consistent follow-through. Regions that are reliable, connected, and sustainable will be best positioned to attract both capital and visitors.
Initiatives such as the Made in the Cape Hosted Buyers’ Programme demonstrate how engagement can translate into commercial opportunities by connecting international buyers directly with Western Cape businesses. By sustaining this approach, the region can convert interest into investment, and ambition into measurable, long-term impact.