Canada and Western Cape forge stronger economic ties to boost trade and tourism

Canada has signalled a strong commitment to boosting investment and deepening economic ties with the Western Cape. This follows a high-level meeting held in Cape Town between Canada’s Minister of Finance, François-Philippe Champagne, and Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer.

“The door is open to the Western Cape for Canada to boost investment,” was the key message emerging from the meeting, as both parties reaffirmed their commitment to strengthening trade, tourism, and bilateral investment between the province and the North American nation.

Minister Ivan Meyer highlighted the importance of the Western Cape’s role in South Africa’s trade with Canada.

“In 2023, South Africa’s exports to Canada were valued at R8.28 billion,” he said.

“Citrus fruit, both fresh and dried, was the leading export category, accounting for R1.69 billion or 20.42% of the total export value.”

The Western Cape itself contributed R3.04 billion to those exports. Its top product, citrus fruit, generated R1.02 billion in revenue, making up over a third (33.64%) of the province’s total exports to Canada.

Meanwhile, imports from Canada to the province also rose significantly, growing by 13.93% year-on-year to R0.84 billion.

Bilateral investment trends were another focus of the discussion. Between January 2014 and May 2024, Canadian companies invested in 26 projects in South Africa, contributing a total of R15.57 billion in capital expenditure. South African firms also made their mark in Canada, with 13 projects worth R3.68 billion over the same period.

The rebound in tourism was equally encouraging.

“In 2023, South Africa welcomed 55,056 Canadian tourists, a 55.08% increase compared with 2022 and 82.70% of pre-pandemic (2019) levels,” said Meyer.

“The Western Cape alone received over 28,650 Canadian visitors, surpassing 2019 figures by 17.60% and reflecting a year-on-year growth of 59.59%.”

This positive momentum in tourism and trade is expected to continue with high-level engagements and international events on the horizon.

“We are also looking forward to welcoming François Legault, the Premier of the Canadian Province of Quebec, to Cape Town later this year as a member of the Regional Leaders Summit,” Meyer said.

The summit includes global regional partners such as Quebec (Canada), Georgia (USA), São Paulo (Brazil), Upper Austria (Austria), Bavaria (Germany), Shandong (China), and the Western Cape (South Africa).

In a move to further bolster ties, a delegation from Wesgro, Western Cape’s official tourism, trade, and investment promotion agency, will undertake a trade mission to Canada this September and attend the Vancouver Wine Show in 2026.

“These figures reflect the growing strength of our economic, investment, and tourism ties with Canada,” Meyer concluded.

“We are committed to deepening this relationship for the benefit of both regions.”

IOL News