Leveraging Trade Policy for Youth Empowerment: Insights from the SAYTA and ITRISA Workshop

The South African Youth Trade Association (SAYTA), in collaboration with the International Trade Institute of Southern Africa (ITRISA), convened the second edition of their capacity-building workshop—a cornerstone initiative aimed at information dissemination that builds capacity for the youth Micro, Small and Medium Enterprises (MSME). The theme of the workshop was “Exploring How South Africa’s Trade Policy Can Be a Mechanism to Increase Youth Participation in Trade”. The workshop was graced by esteemed trade experts and technocrats with a vast knowledge in the sector.

Understanding Trade Policy 📖

At its core, trade policy governs the economic and regulatory interactions between nations. It establishes the framework within which trade activities are conducted, encompassing norms, barriers, and incentives designed to manage the flow of goods and services.

Key components of trade policy include: 

• Tariffs: Taxes levied on imported goods to protect domestic industries.
• Custom Duties: Specific charges applied to goods entering a country.

For MSMEs, navigating trade policies is paramount to mitigating risks and capitalizing on opportunities in international markets. A lack of awareness or strategic planning could lead to pricing inefficiencies and operational challenges, potentially threatening business viability.

Insights from Industry Experts 💡

 The workshop featured a panel rich in knowledge and experience from the different government department units that form part of the broader trade ecosystem, offering valuable perspectives on leveraging trade policy to drive global business success. The moderator of the panel discussion was Mr Corban Thomson who is the Project Lead Manager of ITRISA, and the panelists were:

• Mr Mojalefa Radebe - Trade & SMME Development (NEDLAC)

• Ms Liya Cherian - Export Development Specialist (SEDA)

• Mr Sandile Tyini - Chief Director of Africa Multilateral Trade Branch (DTIC)

• Ms Palesa Rachidi - Trade and Investment Promotion (DIRCO)

Key takeaways included:

1. Maximizing Trade Agreement

Trade agreements are critical instruments for fostering market access and reducing trade barriers. The panel emphasized the importance of understanding and leveraging these agreements to enhance competitiveness.

Types of Trade Agreements Discussed:

• Free Trade Agreements (FTAs): Enable zero tariffs on goods exchanged between member countries, boosting cost-effectiveness for exporters.

• Preferential Trade Agreements (PTAs): Offer reduced tariffs or concessions without full exemption, providing incremental advantages for exporters.

By thoroughly researching the structure and benefits of relevant agreements, businesses can position themselves strategically in both intra-African and global markets.

2. Utilizing Export Development Programs

The South African government, through various departments, has established robust export-readiness initiatives aimed at fostering international business expansion. 

Highlighted Programs:

SEDA (Small Enterprise Development Agency): Provides mentorship, trade mission participation, and lead activation strategies to ensure sustained export growth.

The Department of Trade, Industry, and Competition (DTIC): Sponsors market linkages and trade missions, offering vital exposure and support for aspiring exporters.

DIRCO (Department of International Relations and Cooperation): Extends support through international relations management and market credibility assurance.

These programs collectively lower the barriers to entry for MSMEs, equipping them with the tools and networks necessary for success in the often-challenging export market.

Strategic Considerations for MSMEs 📈

1. Prioritize Domestic Market Strength:

NEDLAC underscored the importance of building a solid domestic foundation before scaling internationally. A resilient local presence provides the financial and operational stability needed to weather potential export market challenges.

2. Explore Funding Opportunities:

Zukiswa Gilimani from the Department of Small Business Development shared insights on accessible funding mechanisms designed to empower MSMEs. For more details, view her comprehensive presentation here.

The Road Ahead 🛣️

The workshop concluded with a call to action for youth entrepreneurs to equip themselves with continuous learning, harness available resources, and build sustainable businesses that can thrive in both domestic and global arenas.

As SAYTA and ITRISA continue their mission to catalyze youth participation in global trade, this workshop stands as a testament to the transformative power of knowledge-sharing and strategic collaboration.

For the full workshop which covers the topics in detail, find the link attachment below.

Until next time, let’s continue building bridges to global opportunities.