A well-established local presence is crucial to accessing global markets in capital equipment exports, highlights industry association South African Capital Equipment Export Council (SACEEC) CEO Eric Bruggeman.

Capital equipment companies can leverage their strong local foundation to build trust, navigate complex regulations and offer tailored solutions to facilitate their expansion into international markets.

A strong base is especially important as it reinforces companies’ deftly navigating global economic instability, managing regional competition and addressing the impacts of shifting global power dynamics that will likely hinder trade and investment.

Bruggeman cites the decision by US President Donald Trump to impose a 30% trade tariff increase, which could have significant consequences on South Africa’s capital equipment sector.

“The economy is in a difficult predicament at the moment, and we are also facing challenges in the US with tariffs. Having said that, we will continue to work hard to overcome these challenges by consolidating our presence in specific export markets, including in Africa and South America.”

Established in 2000, SACEEC’s main function is to provide a facilitating role in assisting capital equipment companies in growing their businesses through equipment exports to key regions in North America, Europe, Asia, South America and the rest of Africa.

“We take our members all over the world and research prime exporting regions for our members, especially those areas with ongoing mining and industrial projects.”

Bruggeman adds that South Africa’s machinery and capital equipment exports amount to about R220-billion a year, representing a sector that is primed to consolidate its global market presence.

SACEEC also provides support for trade missions and exhibitions, promoting the sector’s competitiveness. Its work aligns with South Africa’s export strategy by focusing on market diversification, enhancing the country’s value proposition and increasing demand for the country’s goods and services.

This, in turn, aligns with the broader goal of industrial development by fostering growth in manufacturing and tradable services, creating jobs and contributing to a more diversified and robust economy.

Competitive Advantage, Partnerships, Networking

Bruggeman highlights that South Africa’s capital equipment exports offer numerous advantages, owing to SACEEC members’ providing access to specialised, robust machinery, and engineering solutions in mining, agriculture, civil construction, process industries and utilities.

He adds that local capital equipment companies can offer “innovative designs and enhanced durability”, making them suitable for challenging global environments.

South African capital equipment companies are also well regarded for their strong research and development (R&D) capabilities, and experience in large capital projects such as the North–South Rail Corridor, a major rail network connecting the Democratic Republic of Congo, traversing Zambia, Zimbabwe and Botswana, to the ports of Durban and Richards Bay, in South Africa.

SACEEC also boasts a significant public partnership with the Department of Trade, Industry and Competition (dtic), which is regarded as integral for developing and promoting the capital equipment industry globally.

The dtic partnership also aims to improve the competitiveness of local industries by optimising value chains and ensuring an effective regulatory framework that focuses on fostering domestic and international linkages, as well as promoting economies of scale and continued R&D.

Networking events, trade missions and industry gatherings organised by SACEEC are an effective way of facilitating information exchange about potential export markets, including market trends, regulatory requirements and competitive landscapes, says Bruggeman.

“Building trust and strong relationships is important for successful exporting . . . our networking events provide opportunities to establish those connections between SACEEC members and our international peers,” Bruggeman says.

SACEEC has been facilitating exports for 25 years, with some members having been with the organisation since its inception.

“These long-term partnerships highlight that being a member of SACEEC is highly beneficial,” Bruggeman concludes.