Luncheon Presentation Helped Illinois Businesses Explore Trade Opportunities with Africa and Learn More About Upcoming Illinois Trade Mission to South Africa
CHICAGO – In an effort to increase Illinois’ exports overseas, Gov. Rod R. Blagojevich’s Office of Trade and Investment (OTI) hosted an “Illinois Trade and Investment Initiatives with Africa” luncheon presentation today at the Cornerstone Building to discuss opportunities to identify new markets and increase global exports within Africa. The seminar also provided participants with more information about OTI’s planned June 24-30th trade mission to South Africa, which will offer first hand businesses opportunities for Illinois companies in the African market. The presentation comes as part of Opportunity Returns, the Governor’s comprehensive economic development strategy to create jobs and build the economy.
“When it comes to foreign markets seeking quality products and services, Illinois businesses are in high demand, so we must continue our efforts to connect our many innovative companies to the global community. Through informative trade seminars like this one, which will provide important information about the growing African market, we are better able to educate our small and medium-sized businesses to the wide ranging global opportunities and help them forge lasting partnerships that can result in major business growth and more jobs here at home,” Gov. Blagojevich said.
The luncheon included remarks from Jack Lavin, Director of the Illinois Department of Commerce and Economic Opportunity (DCEO); Emily Brinkmoeller, Director of Trade and Business Development, World Trade Center Illinois; Charles Manuel, Consul Economic, South African Consulate General; Lina Osida Ochieng, Commercial Attaché, Embassy of the Republic of Kenya; Ahmed Bedewi, Vice Consul for Commercial Affairs, Consulate General of Egypt; Alexander P. Gbayee, Consul General of Liberia; Donald J. Lynch, Outreach Program Representative, Illinois Department of Central Management Services; and Dr. Ewa Ewa, Chief Financial Officer, Illinois Historic Preservation Agency.
OTI, in collaboration with the Illinois Africa Trade Institute, will sponsor the 2007 Illinois Business Trade Mission to South Africa that will include stops in Johannesburg and Durban. The mission will provide Illinois companies an opportunity to meet one-on-one with potential business partners and obtain important market information on South Africa and other markets in the Southern African region, as well as networking opportunities and full logistics support. This multi-sector mission is designed to encourage bilateral trade and investment opportunities and facilitate business development between Illinois and Africa.
In 2006, Illinois exports to Africa totaled more than $846 million, an increase of 46 percent from 2005. The South African region represents nearly 67 percent of the economic activity between Illinois and the continent and, since 2002, Illinois exports to South Africa have grown by more than 137 percent. Top sectors include machinery, computer and electronic products, transportation equipment, chemicals, fabricated metal components, and food and kindred products.
OTI offers a variety of export development assistance programs to help Illinois companies identify new markets and locate distribution channels for their products and services abroad. With a network of nine foreign offices, including the Illinois Africa Office in Johannesburg, OTI sponsors sector specific trade missions to targeted foreign markets, which provide Illinois firms with an avenue to pursue the export of their products and services by directly engaging foreign buyers, agents, distributors and/or joint-venture partners.
Under Gov. Blagojevich, OTI has led 47 foreign trade missions. This includes two previous missions to South Africa, including in May 2006, which focused on life sciences, financial services and infrastructure, and, in May 2005, for the Futurex trade show, the leading business-to-business ICTE (Information & Communications Technology and Electronics) event in South Africa.
“Gov. Blagojevich and I are very excited about Illinois’ tremendous recent growth in exports to Africa. As we help more Illinois companies reach new customers and explore even more possibilities throughout Africa, we will continue to grow our economy and create more good Illinois jobs,” State Senator Mattie Hunter (D-Chicago) said.
“Gov. Blagojevich and I are strongly committed to continue helping companies across Illinois get more business by reaching new markets in Africa and across the globe. By aggressively pursuing new opportunities in such a huge and growing market like Africa, we are going to help our companies expand, put more people to work and encourage more investment in Illinois,” State Representative Arthur Turner (D-Chicago) said.
As a result of this activity, companies like NOW Foods, a Bloomingdale-based, industry-leading manufacturer of high quality vitamins, minerals, dietary supplements, natural foods and health related products, has been able to explore market opportunities in the region for the first time. The company participated in the May 2006 Trade Mission to South Africa and was able to meet face-to-face with potential business partners and is currently in the process of selecting its first distributor in the region.
OTI has also worked together with International Truck and Engine Overseas/Navistar International Corporation, based in Warrenville, a multinational manufacturer of durable and dependable trucks, to expand its presence in Africa. The company, which has an office in Woodmead, South Africa, has been exporting trucks to South Africa since 1994, with approximate annual exports of $80 million. In December of 2006, OTI created a special program in Lagos, Nigeria to introduce the company’s new dealer to the Nigerian market. As a result, the company expects exports to the African continent to increase by approximately $10 million this calendar year.
Illinois reported more than $42 billion in exports in 2006, a 17.3 percent increase from 2005, the largest dollar figure increase in a single year, according to WISER, the World Institute for Strategic Economic Research, who compiles its information from the US Census Bureau, Foreign Trade Division. Since 2002, Illinois exports have grown by $16.4 billion, a 64 percent increase. Illinois is also now the fifth largest exporting state in the country, which is its highest ranking ever.
OTI is also working to attract essential Foreign Direct Investment (FDI) to Illinois though a host of promotional activities, including FDI seminars and reverse trade missions. Illinois currently ranks fifth in the nation in foreign direct investment, which supports more than 235,000 Illinois jobs and represents nearly 5 percent of the state’s private-sector workforce, according to the Organization for International Investment. Through strategic promotional seminars overseas and domestically, OTI is continuing to cultivate foreign investment in Illinois and creating more jobs.
“This trade seminar on Africa was a great opportunity for our local businesses to learn more about this growing market and capitalize on new global opportunities. By helping to connect Illinois to the world and opening up new doors, Gov. Blagojevich is setting the stage for more job growth and long-term, global partnerships,” said DCEO Director Jack Lavin.
For more information on all of OTI’s programs, please visit www.illinoisbiz.biz/dceo/Bureaus/Trade/ and for more information on the trade mission to South Africa, contact Marcelino Garcia at 312/814.2319 or marcelino.garcia@illinois.gov.