Transport logistics are the major obstacle in terms of expanding trade between South Africa and Jamaica. This was said by the Minister of Trade and Industry, Dr Rob Davies. He was speaking at the 17th Annual Caribbean Multi-National Business Conference that concluded in Montego Bay, Jamaica yesterday. The purpose of the conference was to expose the Caribbean region to the international investors.
Minister Davies told the conference that transport logistics are negatively affecting both South Africa and Jamaica as it takes 53 days for a container from South Africa to reach Jamaica.
Earlier this year, the Jamaican cabinet resolved that the country be positioned as a Global Logistics Hub which will be at the centre of the island's economic growth strategy. Davies said this strategy would go a long way in improving the current situation, as a container coming from South Africa to Jamaica, goes through three ships, three destinations, and is off loaded three times.
"If the logistics hub can succeed in attracting shipping lines that could cut out one leg of the third journey and possibly even in the nearer future cut out every transhipment and have a direct link, I’m sure that we could cut out the time from 53 days by several weeks at least as well. I think that will be a large step forward on terms of physical capacity" said Davies.
He also said that in addition to transport logistics challenges, it is important for industry players and traders to know each other better. He added that in order to address this, the former Jamaican Prime Minister Percival Patterson has agreed to bring business delegation to South Africa early next year when he will be receiving the national order.
Earlier, Minister Davies held bilateral meetings with the Jamaican Minister of Industry and Commerce, Anthony Hylton, and the Minister of Foreign Affairs and Foreign Trade, Arnold Joseph Nicholson. They resolved that South Africa would bring a business delegation to Jamaica next year.
Trade between the two countries last year was R10 million and Jamaica is South Africa’s 163rd trading partner. However, Davies added that he was confident that the situation could improve as in the past South Africa had exported over R100 million to Jamaica and Jamaica imported R60 million.
The government of Jamaica has come up in support of the establishment of the BRICS-led Developmental Bank. BRICS is an acronym for the grouping of the emerging economies, which include Brazil, Russia, India, China and South Africa.
The BRICS Bank will play a role in mobilising resources for infrastructure and sustainable development projects in BRICS and other Emerging Economies and Developing Countries (EMDC). They also said that the Bank was not intended to replace the International Monetary Fund and the World Bank. According to them, the BRICS-led Developmental Bank will complement the two institutions.
Meanwhile Minister Davies has arrived in Brazil to strengthen bilateral trade relations. This is Davies’s third and final leg of the Latin American trip, following his visits to Cuba and Jamaica. Brazil has consistently been South Africa’s largest trading partner in Latin America for the past five years.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
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E-mail: MSMedupe@thedti.gov.za
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