Paarl | Tuesday
THE wine industry held significant indirect benefits for the economy and its contribution to growth was far greater than initially apparent, according to Nedcor chief economist Dennis Dykes.
Speaking at a seminar in Paarl to mark the start of a three-day Cape Wine 2002 exhibition, he also said prospects for the industry were good.
Dykes said the wine sector’s role in the South African economy was ”deceptively small”. It was a major employer, exporter and foreign tourist drawcard.
”Agriculture made a relatively small contribution of around three percent to South Africa’s total economy of R887,1-billion in 2001.
”The wine industry, in turn, contributed less than five percent to total agricultural production, but this does not tell the real story of the wine industry’s impact on the economy.”
Dykes said the sector employed more than 200 000 people and last year contributed more than eight percent to exports.
It also played an important part in the marketing of the country, and wine tourism was attracting growing numbers of foreign tourists.
Future growth prospects for the industry were encouraging, given South Africa’s sophisticated infrastructure and financial sector, and its access to major world markets, especially the United States and the European Union.
The concessions granted to local wine producers under the US African Growth and Opportunities Act (AGOA) and the recently signed EU wine and spirits agreement would help spark further growth, he said.
Su Birch, the chief executive of Wines of South Africa (WOSA), said the South African wine industry could look forward to the future with confidence and optimism.
Exports grew by 24% in 2001, three times the annual growth rate of the previous four years.
”The exciting thing is that our growth trends are positive everywhere… we also know that interest in South Africa has never been higher.”
She said over 90% of South African bottled wine exports went to Britain, the Netherlands, Scandinavia, Germany, Belgium and Switzerland.
”And looking at the growth trends, these markets are far from saturated. Last year our UK market grew by 27% and a similar figure is forecast for this year,” Birch said. – Sapa