The Western Cape province in South Africa has always enjoyed a growing relationship in trade and tourism with Canada and now the two countries are on the brink of taking cooperation to the next level with a focus on enhancing investment, export and cultural relations. “Agriculture, tourism and investment opportunities as a priority.” “Greater economic cooperation between the two countries has been the order of the day in recent engagements in Cape Town between the two governments.” This burgeoning relationship is an indication of a positive future for both countries, with tourism recovering well and agriculture, specifically the citrus sector, at the heart of this province’s economic recovery.

There has been an impressive growth in trade between the Western Cape and Canada in the agricultural sector, with over R1 billion in citrus exports to Canada in 2023. Behind trade, tourism numbers both to and from Canada to South Africa, particularly the Western Cape, have significantly rebounded. And while the province’s agriculture and tourism industries are not just growing, but becoming more inter-woven, it’s redefining the region’s economic map.

A Thriving Agricultural Export: Leading with Citrus Exports

One of the key industries underpinning the relationship between the Western Cape and Canada is agriculture, with citrus being the product exported. According to the South African Department of Trade and Industry, in 2023, South African exports to Canada had reached R8. 28bn, citrus fruit — both fresh and dried — is leading the way. R1. 69 billion of that total included citrus products, representing more than 20% of national exports to Canada.

The Western Cape has played a significant role in achieving this, contributing R3.8 billion in citrus exports from the region. 04 billion in 2023. Citrus fruit accounted for 33.64% of the province’s lead exports into Canada. This surge not only demonstrates a strong demand for South African citrus but further illustrates the significance of trade ties in stimulating regional economies. consequently, The Western Cape has become an important role player in the global agricultural market and its fruits are becoming very important to the agricultural imports of Canada.

The export of citrus products paves the way for closer agricultural cooperation between the two regions as they are similarly developing both bilateral and multilateral trade relations and new markets. The Western Cape is poised to further grow its agricultural export and support from Canada is very much part of making this happen.

Tourism Bounce-Back: Growth Lessons for Canada and the Western Cape

Although agriculture has been at the heart of trade relations, tourism between Canada and the Western Cape has also grown in leaps and bounds. Canadian tourists visiting South Africa recovered sharply in 2023: 55,056 Canadians visited South Africa in 2023, an increase of 55% from 2022 and close to 83% of pre-pandemic levels. This silver lining is most clearly visible in the Western Cape which received just over 28,650 Canadian tourists – 17.6% stronger than the previous year and 59.6% stronger y/y.

This is a remarkable recovery in such a short period of time, and showcases the resilience of the tourism industry in the Western Cape, which has always been a favourite amongst international visitors. Its mix of stunning natural landscapes, cultural attractions, and urban adventures are drawing Canadians back who are warmed by the diversity of experiences available in the province. The recent spike in Canadian tourism represents the inherent strength and the emerging demand of the province’s tourism industry in the global market.

The burgeoning of tourism from Canada, into Western Cape is also boosting the local economy, boosting tourism spend in hotels, restaurants and local attractions. With Canada and South Africa in the process of deepening their tourism collaboration, it is expected that more Canadians will visit the Western Cape, contributing to the sustainability of the region’s tourism recovery and ensuring jobs in hospitality, transport, and associated service industries.

Deepening investment ties: Canada’s contribution to Western Cape growth

Besides trade and tourism, investments in the Western Cape from Canada are also increasing. From January 2014 until May 2024, Canada invested in 26 projects in South Africa, to the value of R15. 57 billion in capital expenditure. South Africa also contributed its foreign direct investment in 13 projects in Canada with a combined capital expenditure worth R3. 68 billion.

The Western Cape has also reaped some of those investments, for example in agriculture, infrastructure and in tourism development. Canadian investors are increasingly looking at the province, as it has the potential to become a platform from which to innovate and grow in strategic sectors. And both are promoting alliances between businesses and the governments to ensure that investment and economic development are facilitated.

Agriculture, tourism and infrastructure development have created jobs and developed the skills of Western Capers, allowing them to benefit from opportunities that uplift the broader provincial community. And as a partnership between Canada and the Western Cape develops, so new investments are likely to follow, setting the local economy alight and offering fresh prospects for the residents of the Western Cape.

The tourism and agricultural future

The Canada – Western Cape relationship is likely to be further developed with much on the horizon for collaboration and growth across both the agricultural sector and tourism. The region is primed to take advantage of the rising consumption of South African citrus and agriculture products in Canada and to capitalize on the burgeoning tourist interest from Canadian visitors.

The Western Cape’s tourism approach is to diversify the offering, with a focus on drawing travellers to not only its scenic beauty, and cultural offering; but also its commitment to sustainable and responsible tourism and its rich cultural heritage. By further developing our relationship with Canada, the province can develop a tourism industry that is more resilient and works for local business owners and the broader community.

And the ongoing assistance of Canada to encourage investment and build infrastructure in the Western Cape will also help guarantee that this blossoming relationship remains sustainable. A focus on job creation, skills development and economic growth will allow the Province to position itself as a world leader in both agriculture and tourism, and will result in increased international visitors and investors.

Conclusion: A Bright Future for Canada and Western Cape

The deepening friendship between Canada and the Western Cape is yet another chapter in the trade, agri-business and tourism relations. By partnering with agriculture, tourism and investment, each region looks to a bright future of growing prosperity and success. With the Western Cape being an ever growing, alluring destination for Canadian tourists and investors, the outlook seems rosy for the province and its friends in Canada. Their symbiotic bond will help partners in the regions seize the opportunities, enhancing the economic relationship and reciprocal ties, and fostering a sustainable future that benefits all.

References:
Western Cape Government, Department of Agriculture, Forestry, and Fisheries, South African Tourism, Canada’s Department of International Trade, South African Trade and Investment Agency.

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