BUSINESS NEWS - Premier Alan Winde has returned from an official visit to the United States of America (USA), further cementing important relationships with key trade, tourism and investment partners to South Africa and the Western Cape.
US remains a key investment and trade partner
The USA is the province’s number one source of foreign direct investment, a key market for Western Cape exports, as well as the province’s second largest tourist source market, supporting thousands of jobs locally.
Joined by a delegation from the Western Cape Government and representation from Wesgro - the official tourism, trade and investment promotion agency for the province - the Premier held high level engagements with key government and private sector stakeholders in Washington D.C. and New York City.
The visit commenced with a briefing from Ambassador, Roelf Meyer, where the Premier stressed the importance of economic diplomacy in finding solutions to the current impasse. The Premier also committed the region to playing its part in promoting economic ties.
“We embarked on this visit to strengthen long-standing relationships with various US stakeholders in the interests of our residents. Growing the economy to create more jobs is the Western Cape Government’s top priority and making every effort to ensure mutually beneficial economic and trade ties remain open and growing are vital to this work,” said Premier Winde.
Western Cape exporters face tariff and AGOA uncertainty
In Washington D.C., the delegation held productive engagements with representatives of the US State Department, National Security Council, Export-Import Bank of America (EXIM), US International Development Finance Corporation (DFC), United States Trade and Development Agency (USTDA), American Chamber of Commerce, and the National Endowment for Democracy.
The imposition of additional US tariffs and the temporary expiration of African Growth and Opportunity Act (AGOA) benefits made 2025 a difficult year for many Western Cape exporters.
This also saw the USA drop from the province’s second largest to fourth-largest export market, with exports totaling about R14.51 billion in 2025 – a 16.2% decrease from the previous year.
The Western Cape accounts for over 50% of South Africa’s total agriculture and agri-processing goods to the United States in 2025 and the province also holds a significant national share in exports of products such as seafood, yachts and vessels, jewellry, beauty products and vehicle engine components to the USA.
“Advocating for the protection of these job-creating industries was high on our agenda. Citrus fruit remains our largest export product to the US, valued at R1.96 billion in 2025. Positively, fresh oranges have remained exempt from additional US import tariffs, and we have witnessed the positive impact this has made to the economy of our West Coast region over the past year.
"We are supportive of national government efforts to continue negotiating tariff exemptions for more industries and sectors, as well as for our continued participation in AGOA,” added Premier Winde.
US investment reaches decade-high in Western Cape
The USA is also the leading source market for foreign direct investments in the Western Cape. More than sixty projects benefitted from a total capital expenditure of R31.95 billion between 2016 and 2025.
Despite current diplomatic challenges, the province demonstrated strong resilience, recording a decade-high R11.41 billion in investments from the US in 2025.
The Premier stated, “Engagements with some key US investors in our economy, such as Amazon, PepsiCo and Marriot International were constructive. It also provided me with an opportunity to thank them for their trust in our province.”
Tourism and direct flights high on the agenda
Tourism is a key growth sector for the province. The Western Cape welcomed a total of 174 014 tourists from the USA in 2025 alone, reflecting a healthy 6.56% increase from the prior year.
These tourists contributed approximately R2.75 billion in foreign direct spend in the province, highlighting the important role that American tourists play in driving growth and jobs within the sector.
“Cape Town and the broader Western Cape is increasingly being seen as a top destination for American tourists. I have long called for daily flights between Cape Town and the US, and I am encouraged by the ongoing efforts to expand our direct route network and strengthen connections with key US cities, which will help to drive greater tourist numbers, meaning more jobs for our residents,” added Premier Winde.
Energy resilience opens new opportunities for growth
In New York, Premier Winde held numerous stakeholder engagements relating to Climate Week NYC. He appeared on a panel discussion titled, “Building the world’s next electrostates – from energy dependence to electrified resilience,” where he elaborated on the Western Cape’s Energy Resilience Progamme, a provincial initiative designed to ensure energy security by enabling 5,700 MW of new, low-carbon power generation by 2035.
“We are now 2,000 MW in utilising 100% renewables, and we are on course to meet our target by 2032. This not only sets up the province for future economic growth, but also the protection of industries that export to regions looking to implement carbon border taxes,” said Premier Winde.
Climate, water and energy security remain priorities
The Premier also attended a roundtable on subnational climate-aligned data centre growth that included representatives from several US states and subnational regions from around the world.
While data centres are viewed as a vital component to the future economy, the need for sound benchmarking and the establishment of minimum standards was made clear.
The Western Cape Government views energy and water security as critical in its pursuit of growth and jobs. The increased severity of droughts, fires and floods in the province highlights how the Western Cape is affected by climate change.
“These risks require decisive leadership, planning and execution. The Western Cape is increasingly playing a leadership role in subnational organisations focused on addressing these challenges. We are committed to playing our part as a region, learning from others while also sharing our own best practices.
"The Western Cape is also in the process of being nominated to chair the Mediterranean Climate Action Partnership, an international alliance of subnational governments with a Mediterranean climate covering five continents, highlighting our growing voice in these discussions,” concluded the Premier.
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