CBI, an agency operating within the policy framework of the Netherlands Ministry of Foreign Affairs and the Ministry for Development Co-operation, held a workshop for South African companies in March. The aim of the workshop was to introduce and launch its Export Development Programme (EDP) for Electronic Components & Systems 2003–2006.
Technews, in co-operation with ADEC and Exhibitions for Africa (formerly Reed Exhibitions), arranged the workshop that was held in Randburg, Gauteng. Presented by Guenther Fandrich from CBI, representatives of some 23 South African companies involved in electronics attended the March workshop.
The programme
The CBI's main objective is to contribute to the economic independence of a selected number of mainly lower and middle income countries in Africa, Asia, Caribbean, Central and South America, Mediterranean and the Pacific, by promoting the exports of goods and services from those countries to Western Europe. To achieve this, the agency has developed a package of services and export development programmes that it makes available to business support organisations and manufacturers/exporters in these countries.
The Electronic Components & Systems 2003-2006 programme replaces the previous CBI programme for electronic components. The new programme aims to assist producers/exporters of electronic 'components and systems' to enter the European market. The policy behind this shift is that CBI believes that more value-adding should be done in the countries of origin.
Those companies selected for the programme (there are certain conditions to be eligible) will be given intensive support through a step-by-step approach in order to obtain a firm and durable foothold in the EU market. Depending on needs and requirements, selected companies may receive support in the field of product improvement, production, quality control, management, export marketing and market entry. All CBI services and programmes are sponsored by the Netherlands Government and as such are free of charge.
Target group
Companies eligible for the programme are manufacturers/exporters in specified countries. Currently Egypt, India, Philippines, South Africa, Thailand, and Tunisia are selected.
These companies (of up to 500 employees) need to be ready for the international market, preferably with some export experience, and be offering products which are perceived to be competitively marketable on the European market. They need to have some knowledge about the competition and trends, and be producing according to international standards. CBI says that the companies also need to be fully motivated and dedicated to deal with challenges of a new and demanding market, and if required, willing to invest in training of personnel and improvements in production, design, marketing, etc, in order to meet European market requirements.
Products
The main product groups selected for this EDP are: semiconductors; embedded systems; sensors and microsystems; PCBs and other bare boards (including contract manufacturing); electromechanical components and connector technology; passive components; displays; power supplies; assemblies and subsystems; ED/EDA, testing and measurement
Why Europe?
With a volume of $56,4 bn in 2001, Europe represents 20,4% of the world market of electronic components of $279 bn. Being technology-wise world-wide, leading in two key growth areas - telecommunication and automotive - the total European demand for electronic components will most likely outgrow other global regions. Within the EU, five countries (France, Germany, Italy, The Netherlands and the UK) represent over 80% of the electronic components market with a growing pattern for consumption, production and imports as well.
The converging telecommunication and home computer sectors are rapidly growing, and together with additional Internet/multimedia applications, are creating a solid base for additional growth. The continuously growing share of electronics in the automotive segment in combination with new applications in the consumer goods sector and industrial segments, is further propelling the need for electronic components, partly with a two digit growth rate per year.
According to CBI, developing country suppliers of electronic components and systems have not only been quite successful in three product areas: electronic assemblies, PCBs, and passive components, but have also exceeded the growth rates of their competition on the EU market with partly tripling their market-shares in the recent years. It says the markets served show positive signs for the future.
Additionally, European PCB manufacturers are starting new manufacturing techniques, concentrating on multilayer and fine line technologies. Suppliers in developing countries could become alliance partners of European manufacturers, says CBI, initially covering the single and double sided PCB shares. As industry trends are towards co-operation and strategic alliances, this is a style exporters in developing countries should follow, too, says CBI. Also, the increased share of electronic components in electronic equipment produced in Europe is growing exponentially and with the assistance that this programme can offer, exporting companies can become an active part of an industry on the move.
For more information contact Guenther Fandrich, 0949 9129 28 59 60, [email protected], or Viv Dorrington, 011 886 3640/1, [email protected]
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