The City of Cape Town’s Mayoral Committee Member for Economic Growth, Alderman James Vos, has written to Minister of Trade, Industry and Competition Parks Tau to express serious concerns over the potential imposition of a significant tariff by the United States on boat imports from South Africa. The letter follows formal engagement between Alderman Vos and representatives from Cape Town’s boatbuilding industry, including BlueCape and the South African Boat Builders Export Council (SABBEX).
Cape Town’s boatbuilding industry has emerged as one of the city’s fastest-growing manufacturing sectors, with an average annual growth rate of over 22% and exports valued at nearly R5 billion in 2023 alone. The City is now recognised globally as a leading exporter of catamarans, with the United States serving as the primary market for many local manufacturers.
‘The proposed tariffs pose an existential threat to a proudly South African industry that supports more than 3 500 direct jobs and contributes significantly to our local economy. Many of these companies rely on the US market for the majority of their sales, and the impact of these tariffs would be devastating,’ said Alderman Vos.
In his letter to the Minister, Alderman Vos emphasised the need for national trade negotiators to consider strategic insights provided by the sector. These include evidence that South African-built vessels contribute to the US economy by supporting jobs in areas such as charter operations, distribution, and marina management.
‘Cape Town’s boatbuilders offer highly specialised skills that align with US interests in marine manufacturing and skills development. This should be a platform for partnership, not punitive trade measures,’ said Alderman Vos.
The City has pledged its full support to the sector and is working closely with stakeholders to safeguard jobs and sustain the momentum of a high-performing industry that generates global demand for South African artisanship.
‘BlueCape extends its sincere thanks to the City and Alderman Vos for their support in highlighting the potential impact of tariffs on the boat building sector. As a specialised manufacturing industry, boat building involves complex global supply chains and interdependencies that demand a coordinated response to safeguard the continued international competitiveness of our manufacturers,’ said Founding Director for BlueCape, Vanessa Davidson.
‘We trust that the National Government will treat this matter with the urgency it requires. A resolution in favour of our exporters will not only protect livelihoods but will reinforce the long-standing economic ties between South Africa and the United States,’ said Alderman Vos.
