European demand reorients Cape Metro’s export landscape -- WCG

The Cape Metro’s export profile is undergoing a notable geographic reorientation, with European markets emerging as the primary engines of expansion. 

According to the Cape Metro Export Briefing Note published last week by the Western Cape Provincial Government, this strategic shift highlights a growing reliance on European demand as performance in traditionally key regional African markets softens.

European markets emerged as the leading drivers of export expansion between 2019 and 2024. In 2024 alone, exports to the United Kingdom rose sharply by 40%, accompanied by a 19% increase in exports to the Netherlands and an 8.6% rise in exports to Germany. By contrast, year-on-year exports to major regional partners declined, with Botswana falling by 34% and Mozambique by 16.5%.

The Cape Metro remains the dominant force in regional trade, accounting for approximately two-thirds of all Western Cape exports, the report confirmed. Totalling R141.6 billion in 2024, the Metro’s export performance recorded a strong compound annual growth rate (CAGR) of 8.6% between 2019 and 2024. While the region maintains a merchandise trade deficit—largely due to petroleum imports—excluding these energy products results in a significantly more neutral trade balance.

Growth in high-value niche sectors, such as the local boatbuilding industry, faces new challenges. The U.S. currently accounts for roughly 30% of the Metro's yacht exports, but recent tariff developments have already triggered significant declines in that market.

The report notes exporter concerns regarding operational constraints at the Port of Cape Town.

To mitigate these risks and support stable growth, the report emphasises the need for improved logistics and a broader market base to reduce exposure to external shocks.  

The Cape Metro Export report forms part of a series of export profile reports, designed to support the Western Cape Government in its export seminars across the province. 

“The City of Cape Town’s export performance provides insight into the region’s evolving industrial and trade capabilities,” the WCG says in the report introduction. 

“As the major economic engine of the Western Cape – contributing about 10% to national GDP1 - and home to the crucial Cape Town port, the Metro’s performance provides key insights into regional growth potential, value chains, as well as other insights to support improving production efficiency across the province.”