BRIGHT FUTURE
Visiting New Zealand for the first time last year,
Commonwealth Enterprise and Investment
Council chief executive Richard Burge was
struck by the internationalism of the country.
Here, he talks exclusively to NZ FoodTechnology
magazine about how Kiwi food and beverage
exporters can use that quality – as one of many
– to triumph in the post-Brexit age
Walking around Auckland, all sorts
of languages are being spoken
by people from across a huge
geographical spread but who
identify as New Zealanders. New Zealand has
proved over many decades that you don’t have
to be at the physical centre of the world to be at
the centre of its commerce, reinforced by the expeditionary
and open approach of its exporters.
The Commonwealth Business Forum (CBF),
held in London in March, highlighted the many
business opportunities which exist across the
Commonwealth. As one of the leading members
of the Commonwealth, and most economically
successful, I looked forward to seeing a strong
delegation of New Zealand businesses there.
This forum was organised alongside the biennial
Commonwealth Heads of Government Meeting
(CHOGM) and convened 800 senior Commonwealth
business leaders alongside approximately
30 heads of state at three iconic London venues.
It was a huge opportunity for business leaders
and decision makers to make connections and
explore the many reasons the Commonwealth is
such a unique platform for trade and investment.
As chief executive of a business organisation, the
issue of the UK leaving the European Union is
obviously one which I discuss regularly. However,
whilst it may be a preoccupation in the UK, it
isn’t necessarily so for the rest of the Commonwealth
members. Commonwealth countries may
have to re-think how they trade with and gain
access to Europe, but this shouldn’t result in diminished
opportunities for their export markets.
In January New Zealand reported record high
export figures, contributing to a hugely reduced
trade deficit. But it is still vital that the New Zealand
business community continues to reach out
to new export markets.
Commonwealth markets have both diversity
and youth on their side – the network is made
up of 53 countries of all shapes and sizes, with
60% of its population under the age of 30. The
Commonwealth is adding to its middle class
faster than any grouping, and is due to contain 1
billion middle class consumers by 2020. Including
key global growth areas like India, East Africa
and Nigeria, disposable incomes are rising and
market opportunities growing. As a result, the
total global exports of Commonwealth countries
almost tripled between 2000 and 2013. In addition,
the ‘Commonwealth Factor’ - shared values,
regulatory systems and language - makes trade
costs on average 19% lower between Commonwealth
countries.
So, having plugged itself so effectively into the
markets of the Pacific - China, Australia, the US,
Japan, South Korea and, of course, the Commonwealth
markets of the Pacific Islands (where
the landmark PACER plus agreement is doing
great work to stimulate trade), Singapore and
Malaysia (one of New Zealand’s fastest growing
export markets) - now may be time for New
Zealand to look further afield for new growth.
It is hugely encouraging to see the work that
has already gone into the negotiation of a New
Zealand-India FTA, and I’m delighted to see New
Zealanders recognising the potential of Indian
markets in the future. Indeed, with exports to
India only valuing NZ$639 million in 2016, compared
to $9.4 billion with China in the same year,
there is clearly potential for growth in this area.
Exports to Africa are another area where there
is an opportunity to do more. Major progress
has already seen exports to the continent triple
from 2004-2014, with 9% of New Zealand’s dairy
exports now Africa-bound. But there is still huge
untapped potential in the region. Common-
wealth countries in the East African region are
all growing their GDP in excess of 5% per annum
(Kenya, 5.5%, Rwanda 5.2%, Uganda around 5%
and Tanzania 6.6% in 2017), and represent major
opportunities for New Zealand’s world renowned
agricultural produce.
These are opportunities that CWEIC’s export
champions are already making the most of.
Our CommonwealthFirst Export Champions
are carefully selected UK SMEs who have an
exciting and innovative product or service, and
an enterprising approach to export opportunities.
Naturally Tribal are making the most of growing
disposable incomes to find a gap in the African
skincare market, particularly in Nigeria. London
based African fashion retailer Sapelle have a
supply chain spanning 15 African countries and
are shipping orders all over the world. And sweet
potato snack manufacturer Sacoma are helping
small holder farmers in Kenya to take their products
across the continent and around the world.
FOR NEW ZEALAND EXPORTERS?
Commonwealth
markets have both
diversity and youth
on their side – the
network is made
up of 53 countries
of all shapes and
sizes, with 60% of its
population under the
age of 30.
BREXIT
22 MAY 2018