Global Ambition – Industry Insights webinar series

Enterprise Ireland will host a series of Global Ambition – Industry Insights sector focused webinars for clients, to deliver market intelligence on the evolving international export opportunities across global markets. The five sector market webinars will focus on:

  • Construction – 15th September, 9:30am – 10:45am

  • Lifesciences – 15th September, 2pm – 3pm

  • Travel Tech – 16th September, 3pm – 4pm

  • Agritech – 17th September, 11am – 12pm

  • Consumer Retail – 17th September, 2pm – 3pm

 

This webinar series will draw on Enterprise Ireland’s unique insight into key markets for Irish exporters lead by the Market Advisor in that sector and will explore crucial issues such as relationship strategies and the shift in consumer behaviour in the context of Covid-19.

You can register using this link. You can register for multiple webinars and all registrants will receive a copy of the webinar recording and slides.

John Teeling

Storyworlds Podcast #1 – Teelings Whiskey

JohnTeeling_Podcast_SC

In a new podcast series, Storyworlds explores the inner life of Irish food and beverage as it goes global.

In our first episode, storyteller James McCabe talks to whiskey innovator and lifelong entrepreneur John Teeling, founder of the Coolea Distillery, the Kilbeggan Distillery and the Great Northern Distillery, about the tribulations and triumphs of restarting Irish whiskey as a truly global enterprise.

Practically single-handedly, John strove successfully over decades to restart the global success of a diverse whiskey industry – after the early world lead had been lost to sluggish innovation uptake and the Scottish contingent.

John and James dive deep into the backstory of a unique world beverage and, in the process, discuss enterprise in crisis times and how Ireland might not only host the world economy, but help it reinvent itself.

Keogh’s Crisps – Keep Going, Keep Growing – Innovation and Insights

“We were able to draw on the insights from the professionals which gave us a fantastic understanding of consumer preferences and thoughts. The knowledge we gained using the Enterprise Ireland Innovation Voucher Scheme enabled us to make tweaks and improvements and our sales have grown on the back of it”

Ian Maher, Head of Operations, Keogh’s Crisps.

The Irish success story of Keogh’s crisps is now a worldwide one and their range of premium hand cooked small batch crisps and popcorn continues to expand. Their share bag sales increased by a third during the pandemic and the family-owned company has innovation at its core and continues to scale up.

The family has been farming for over 200 years at Oldtown, North County Dublin and their crisps now account for nearly 10% of the total Irish crisp market. They also currently export to 20 countries worldwide including the USA. Known as the only firm in the world to have actually taken a potato brand and turned it into a crisp brand, their use of Irish ingredients and flavours like chorizo and cherry tomato, Irish Atlantic sea salt, shamrock sour cream and roast turkey and secret stuffing sets them apart from other brands.

Keogh’s took part in the Enterprise Ireland Innovation Voucher Scheme and worked with Teagasc to research and test consumer reaction to some upcoming product innovations. “We found it very useful testing and trialling and tasting products to give us an idea of what consumers might think, so that we could go forward and down the right track. After feedback we changed some of the seasoning applications and made improvements” explains Ian Maher, Head of Operations.

Working with experts from Teagasc, Keogh’s Crisps was able to use the Innovation Voucher Scheme to set up bespoke research models to draw insights from professional panels. They could then realign their thoughts and make changes where they needed to. “We got a good steer in the right direction with the research and we were able to ascertain what aspects of the products that we needed to revisit. We got a good understanding of how we should go about testing something. We learned that it is not about just asking questions, it is about asking the right questions. It was like a light switch for us.” explained Ian.

“The Enterprise Ireland Innovation Voucher Scheme helped us to get to where we wanted to faster and with less of a pinch than we would have because we had the support and professional help in the background. It’s not just the process – it’s all about the potential of where it leads you to.”

Looking to the future, Keogh’s Crisps are always looking at how they are going to expand their range and do even healthier versions with great flavour and taste. They’re also prioritising sustainability and having less impact on the environment. Recommending the Innovation Voucher Scheme to other companies Ian Maher advises: “You cannot do everything at once. Plan out what you need to do over a period of time and think about what you want to achieve with the innovation vouchers. In our business for example, it’s all about timing and there are certain windows during the year for new products.”

To take your next step towards Innovation visit Innovation Vouchers.

Market Watch – A view from Manchester

Key Takeaways

• The UK is the largest export market for Enterprise Ireland clients
• The North West of England has been growing at a faster rate than London in recent years.
• The Manchester office for Enterprise Ireland opened in 2019 and is providing support for many Irish firms operating into and in the region.
• Despite Covid and Brexit, business is still moving.
• There are opportunities for Irish companies in many areas including construction, healthcare, digital technology, and life sciences
• Irish companies may also achieve contracts with local authorities

As our closest neighbour, the UK has long been a crucial trading partner for Ireland and as one of the fastest growing regions of the country, the North West of England was the obvious choice for Enterprise Ireland to open up a second UK office last year.

Headed up by Laura Brocklebank and her colleague Kevin Fennelly, the Manchester branch focuses on opportunities for Irish clients in manufacturing – covering areas such as pharmaceutical and food and drink as well as paper, print and packaging. It is also leading on UK local authorities with major spending budgets across infrastructure, transport, healthcare and more.

“The UK is the largest export market for Enterprise Ireland clients, which, despite the challenges of Brexit, grew 2% to €7.9 billion in 2019, with all non-food sectors recording growth of 6%,” says the senior marketing advisor.”

And the market continued to perform strongly in spite of uncertainty, demonstrating that client companies have remained committed to the UK market and its short/medium-term growth potential.

“Adding to this, the north west of England is a particularly dynamic region which actually grew at a faster rate than London in recent years – in fact, if it were a country, it would be the 12th largest economy in Europe. And this was the key driver for Enterprise Ireland when selecting Manchester to locate its new office last year.”

Brocklebank says the Greater Manchester region alone is the size of the Irish market and the combined authorities of Greater Manchester, the Liverpool City Region, North of Tyne, Sheffield City Region and Tees Valley have devolved powers which means that decision-making powers and funding are transferred from Westminster to these regions.

“The UK remains a key first export market for Irish industry to enable them to innovate and diversify and for these reasons, many Irish companies look to the North of England to set up a presence in the UK and it is often their first overseas presence,” she says.

“Our Manchester team focuses on opportunities in manufacturing, along with partnerships with UK local authorities who have major spending budgets. We collaborate extensively with our London office and work as one team with our 20 colleagues who are specialists in various sectors including Construction, Life Sciences, Healthcare, Digital Technologies, Cleantech and Renewables – all of which are of strategic importance and opportunity across the region. In effect, we are also the eyes and ears on the ground for our colleagues leading these sectors.

“As the North of England is traditionally the industrial heartlands of the UK, having a base here shows our commitment to the region and we are attuned to the needs of Irish companies, which are active all across the area.”

Accessibility is key and the Irish Sea has long been an important link between the UK and Ireland. So as the Port of Liverpool has submitted a bid to become established as a UK freeport, the regional lead says this could provide an opportunity for Irish companies with relevant smart ports solutions and automated and high-tech solutions which facilitate maritime trade and logistics.

“Ireland’s strong marine and civil engineering companies will be keen to collaborate with UK partners in the North West to help facilitate the necessary infrastructural upgrades required to cater for increased trading and customs realities,” she says.

“In addition, over the past number of years the area has experienced a boom in new building and infrastructure projects and there are many Irish companies leading in the Construction sector – John Sisk & Son have created a major landmark with Manchester’s Circle Square Affinity Living Project, ESS Modular opened their Manchester office in July 2020, having completed a number of projects in Leeds and Oldham, and have a current project with North Manchester General Hospital. And Techrete’s architectural precast concrete cladding can be seen on the iconic One and Two St. Peter’s Square.”

Manchester is also home to a fast-growing £5 billion digital ecosystem and has been officially ranked as the UK’s Top Digital Tech City, while Newcastle became Smart City of the Year 2019 for its innovative approach in using technology to help transform services and improve the lives of residents.

The marketing expert says there is a lot happening in the region which could provide opportunities for Irish firms.

“Digital tech company, Gamma Location Intelligence has recently opened their first overseas office in Manchester as they expand into the UK, having established in Ireland in 1993,” she says. “They have become a market leader in the provision of location intelligence systems and services which drive innovation across many sectors including insurance and retail, focusing heavily on cutting-edge research and development projects, leveraging Artificial Intelligence and machine learning.

“And in October 2020, VRAI, a data driven VR stimulation training for high hazard environments, announced their expansion into the UK with their first overseas office in Gateshead’s PROTO Centre, the UK’s immersive technology cluster.

“There are also opportunities for Irish businesses who can support local authorities in digital transformation, smart cities, connectivity, transport, housing, infrastructure, roads and highways and adult and social care. And a great example of this is SilverCloud which works with Greater Manchester Health and Social Care Partnership, providing support for those who may be feeling stressed and anxious due to the current pandemic.”

Of course, there are still some challenges, with uncertainty surrounding both Covid-19 and Brexit but the UK will continue to be an important and attractive market for Irish enterprise.

“Earlier this month, we had a rich and productive meeting with Greater Manchester Mayor, Andy Burnham and Liverpool City Region Mayor, Steve Rotherham, to discuss and agree the strongly aligned sectors of which Enterprise Ireland clients have strong supply chain capability,” says Brocklebank. “So we are looking forward to further collaboration and to have deeper engagement across these sectors.

“Enterprise Ireland also warmly welcomes the announcement of a new Consulate General for the North of England and we are looking forward to working together to strengthen Ireland’s presence in the region.”

To learn more about UK opportunities see the Evolve UK page here 

One Planet. One Health – Danone and GreenPlus

“The health of people and the planet are intertwined.  You can’t have one without the other”, states Mark Stafford, Nature and Sustainability Manager at Danone, Wexford.

Danone’s mission is to bring health through food to as many people as possible with high quality products contributing to all life stages. This is where sustainability and the environment comes in and it is one of the four key pillars at the company – they have now adopted ‘nature’ as a business fundamental for all supply points and sustainability roadmaps for their brands.

The company used Enterprise Ireland’s GreenPlus scheme to empower line management and teams to manage and improve energy performance at basic unit level and they have now achieved certification to the prestigious ISO 50001 International Energy Management Standard.  This standard aims to help organisations to continually reduce their energy use and therefore their energy costs and their greenhouse gas emissions.

Through their work with GreenPlus, the Energy Management System (EnMS) at Danone has now been implemented successfully across the site, system accreditation has taken place and a number of energy saving opportunities have been identified. This has enabled the company to implement solutions and their annual energy savings are now measured and verified.

So how was their journey with Enterprise Ireland’s GreenPlus and what were their main challenges? Peter Pearson, Nature Co-ordinator explains: “We started looking at the gaps and found the biggest gap was metering.  Data monitoring and reporting systems presented a challenge as the metering available on-site did not satisfy our requirements with regard to reporting detail and frequency”.

“Going down the ISO 50001 route focused our minds on the areas we needed to tackle. It raised awareness within the company.  It identified savings and improved our knowledge on the use of energy onsite.  We found the process easy to navigate and it was fairly straightforward. It was great to have the support of Enterprise Ireland and it was very helpful.”

Danone aims to become carbon zero across their value chain by 2050 and to do that all elements of the business need to become carbon neutral. “Our plant in Co. Wexford has become the first infant formula production site in the world to be certified as carbon neutral.”

“Our net zero carbon rating has been certified by the Carbon Trust, an independent global climate change and sustainability consultancy,”  said Stafford

Explaining the benefits across Danone of engaging with GreenPlus, he pointed out that “We needed buy in from management which we quickly achieved and it was also important to make all employees aware of where we needed to get to and our ambitions. We weren’t surprised that through the GreenPlus process we identified many opportunities – we knew they were there but just didn’t have visibility of them.  The process helped us to pinpoint exactly where we needed to make improvements”.

“As part of our roadmap for the project there was also a huge focus on energy reduction and efficiencies and implementation of the ISO 50001 was crucial to that journey”.

From a business perspective, Mark Stafford and Peter Pearson point out that consumers and customers are looking for sustainability more and more and all the research backs this up.  The expectation is there and that goes for all activities within a company.

“The feedback is that people want more sustainably produced products and environmentally friendly products.” 

“All employees are now aware of where we need to get to.  We have nature champions across our business units and they are now bringing in their own ideas in relation to sustainability and the environment for our brands.  There are a lot of projects now going on in the company. This includes our intention for all of our supply points and business units to be BCorp certified. We know where we are and where we need to get to and what we want to achieve.  We are very focused.”

 To get your business ready for a green future visit Climate Enterprise Action Fund or contact the Climate Action Team

Plenty to celebrate stateside this St Patrick’s Day

St Patrick’s Day offers an unrivalled opportunity to showcase Irish business innovation to a US audience.

The traditional meeting between the Taoiseach and US President is taking place virtually this year, leveraging our important ties and connectivity with our trans-Atlantic neighbour more than ever.  

The USA remains the world’s largest consumer market, a $22 trillion dollar economy. It grew by 4% in Q4 last year and early projections for 2021 indicate further growth of 3.2%, a strong performance for a developed economy.

Increasingly Irish companies succeed here by recognising that the USA is no more one market than Europe is, and that to penetrate it they must go in state by state. California’s economy is, after all, approximately the same size as that of the UK. New York’s is approximately the same size as South Korea.

 

The Pandemic Pivot

The Covid-19 pandemic has had a significant impact, with unemployment currently at 6.9%, up from 3.5% prior to Covid, which was a 50-year low. Lockdowns vary by state but as a whole the US is a market where the pivot happened fast, and the return will too.

One of the biggest trends we see is how major US multinationals, such as Facebook, Microsoft, and many others are embracing the lessons learned. They have ‘leaned in’ to the opportunities that remote working, accelerated technology adoption and virtual collaboration have presented.

Interestingly, this has also led to a level of economic migration and mobility not seen in generations as more and more people also take advantage of operating remotely and move to less dense population centres.

The crossing of the digital Rubicon has also led to accelerated growth in sectors that were once described as emerging, these include ecommerce, cybersecurity, and digital health. There has also been a marked increase in the demand for content driven by the rapid growth in usage and choice across stream platforms. These relatively sudden supply and demand shifts always result in direct and tangential opportunities, and threats.

As people live more online, those providing back end solutions, such as data management (provision and support products and services) and security, are seeing potential for robust growth.

 

Building Back Better

Further bolstering the optimism for strong 2021 GDP growth is the economic stimulus plan put forth by President Biden, further supplemented by significant planned investment in infrastructure and the green economy. At time of writing the $1.9 Trillion stimulus plan has moved back to the US House of Representatives for final ratification, this is expected to provide significant economic stimulus across the US.

Other sectors are of course challenged. International student numbers from the US to Ireland have fallen for obvious reasons. Consumer retail, for those that have not embraced ecommerce, is struggling, and other sectors that have historically relied on a tactile or physical element to the sales process, e.g. machinery, will naturally struggle more in a virtual environment.

A big question affecting businesses, and unknown in terms of our ‘new normal’, is what airline travel will look like. Capacity is certainly not what it was pre-Covid and there are complex variables that impact this supply and demand dynamic, not least of which are staff and equipment availability. Thankfully we continue to be relatively well served on the trans-Atlantic route.

Over the past 12 months Enterprise Ireland has also leaned in to supporting our clients to stabilise, reset and recover. Supports such as the Sustaining Enterprise Fund, Online Retail Scheme, Virtual Selling programme, Competitive Start, our many management training programmes and others have enabled companies not just to cope with the challenges of selling into the US and globally, but to compete for and capture the opportunities that now exist in our new normal.

 

Virtual St Patrick’s Day Celebrations

Enterprise Ireland is walking this walk too in our traditional St Patricks Day events, having taken the traditional week-long programme of events for St Patrick’s Day and working with our Team Ireland colleagues migrating it online. Where Team Ireland would normally have the Taoiseach, Ministers, and a programme of economic, political, social and cultural events from coast to coast and border to border, we have pivoted entirely and will instead be hosting a multi-faceted programme including a series of in-depth sectoral webinars.

We are running high profile mainstream media and social campaigns this week too, to maximise the impact of St Patrick’s Day, raising the profile of Irish companies and of the Irish Advantage.

None of us knows what the new normal will look like. We do know that it will not be a simple snapping back into the old ways. Over the past 12 months we have crossed the digital Rubicon. It is now up to all of us to embrace the digital opportunities on the other side. As Henry Ford said, “Whether you think you can, or whether you think you cannot, you are right”. We can.

 

Join Enterprise Ireland USA for the ‘Ireland and the US: On Track to Getting Back’ virtual event on 16th March where senior business leaders from both sides of the Atlantic will discuss learnings from 2020, and powering growth in 2021. Register here.

 

Key questions to ask at your Vietnamese Market Advisor meeting

Successfully selling into the Vietnamese market earns you credibility internationally and can be a gateway to many other overseas markets.

If you are considering doing business in Vietnam, your first step should be a call with our team in Vietnam.

    The questions below were designed to help Irish businesses get the best out of their first Market Advisor call

    • How does the market look like for my products/services?
    • Is there a demand for my products/services?
    • Who are the key players existing in the market? Competitor analysis?
    • What is the usual route to export to Vietnam?
    • What is the business culture like in Vietnam?

    Set up a call with our dedicated team today, and be sure to check out the Going Global Guide 

     

    Enterprise Ireland’s top tips for entering the Vietnamese market can be viewed by clicking the graphic below.

    Net Zero UK GA Agriculture

    Net Zero UK podcast – The UK agriculture sector – Jon Foot, AHDB

    In Enterprise Ireland’s ‘Net Zero UK’ podcast series, we discuss how the UK plans to transition to a net zero economy and the impact this will have on SMEs.

    In the fifth episode, Jon Foot, Head of Environment and Resource Management at the Agriculture and Horticulture Development Board (AHDB), discusses the latest sustainability trends in the UK agriculture sector.

     

    Large ship with containers in port

    Customs – Country of Origin

    When it comes to customs, the country of origin of a product is critically important. And to all intents and purposes, the world is divided in three – EU member states and preferential and non-preferential countries.

     

    Preferential Countries

    Goods of EU origin travel freely within the EU, with no customs to deal with. Preferential countries are those with trade agreements with the EU, and all other countries fall into the non-preferential category.

    Exports to and from preferential countries are subject to the rules of the trade agreement. For Irish exporters, this means proving that the goods involved are of EU origin. Importers must establish that the goods are of preferential origin, i.e. that they came from the country with the trade agreement.

     

    Non-Preferential Countries

    Normal WTO rules apply to non-preferential countries. This means first establishing the origin of the goods in question and then looking up the EU TARIC site to get the code for the goods and finding the relevant tariffs and other rules such as anti-dumping or quota restrictions which might apply.

    Origin is essentially the economic nationality of the goods being traded. In some cases, this is easily established. These are instances where products are what is known as wholly obtained in a country. This means they have been entirely produced in that country without any goods from other countries being utilised in the end product.

     

    Value-Added Rule

    This would normally apply to fruit or vegetable products or basic cuts of meat. Spanish strawberries or Dutch tomatoes would be examples.

    Things get a little more complicated with prepared consumer foods like frozen pizzas or other ready meal products like lasagne. The increasingly complex and globalised supply chains involved in the manufacture of such products can call into doubt their country of origin. So, a pizza manufactured in the EU, but with many of its ingredients sourced from countries outside the EU, could present an interesting case.

    Origin in these cases is determined by where what is known as substantial transformation has taken place. This is decided by the value-added rule which, broadly speaking, means where most value has been added. In the case of the Irish manufactured pizza or ready meal, if the value of the finished product is significantly greater than the sum of its third country ingredients, it is deemed to be of EU origin.

     

    Certificates of Origin

    Certificates of Origin are required for goods being exported to countries with trade agreements with the EU. Certificates may also be required for other countries depending on the destination e.g. certain Arabic countries. Many large exporting companies have an Approved Exporter for Simplified Origin Procedure status with Revenue, and this allows them to self-certify their exports to countries with EU preferential origin status.

    Companies without this Approved Exporter status have to apply for a EUR 1 certificate from Revenue for each consignment of goods to preferential countries. For newer preferential agreements with Japan and Canada, EU exporters can simply register in the REX system, without applying to Revenue for Approved Exporter status. They can then declare their exports to Japan and Canada as having EU preferential origin by means of a statement on origin placed on an invoice or other commercial document.

    Where the goods are destined for a non-preferential country, a Certificate of Origin can be obtained through Chambers Ireland or one of its members.

    For further information, go to a customs broker for advice or to your local chamber of commerce. If you are still in doubt after that, you will find further information on the Origin section of Revenue’s website or contact the Revenue Commissioner’s Origin and Valuation Unit.

    Supporting Regional Development Critical To Future Jobs Growth

     

    Resilience is a word we became used to in 2020 and it is an apt term to describe how Irish business responded to the dual challenges of the Covid-19 pandemic and the end of the Brexit transition period.

    For thousands of businesses across Ireland, and their staff, it has been a tough, challenging year marked by disruption and uncertainty. But what has been remarkable is how Irish businesses have responded to the impact of Covid-19 and Brexit.

    At Enterprise Ireland we work closely with the Irish manufacturing, export and internationally traded services sector.  We invest in established companies and start-ups, we assist companies to begin exporting or expand into new markets and we back research and development projects creating future jobs.

    This week we launched our annual review for 2020.  The good news is that the companies we are proud to support employ more than 220,000 in Ireland.  Despite the challenges faced in last year, nearly 16,500 new jobs were created, closely mirroring the 2019 outturn.

    However, job losses were significantly higher than in previous years, resulting in a net reduction of 872 jobs across the companies we support.

    There is no sugar coating the fact that it was a tough year for business.  However, behind these statistics are individual stories of companies taking brave decisions to change their business model, reimagine their product offering and find new ways of doing business and connecting with customers to trade through the impact of Covid-19 and Brexit.

    Enterprise Ireland has worked with these companies throughout the year to ensure viable companies have the liquidity, supports and advice they need to trade, and importantly, to sustain jobs.

    Enterprise Ireland supported companies have a key role in the Irish economy.  65% of employment is outside the Dublin region and these indigenous Irish companies, many of which are world leaders in their field, are critical to delivering balanced regional economic development.

    Powering the Regions is Enterprise Ireland’s strategy for regional development.  It outlines specific plans for each region in the country, drawing on their existing enterprise base, their connections with third level institutions and their unique potential for growth.

    The strategy is backed significant funding.  This time last year more than €40m was allocated, in a competitive call, to 26 projects fostering regional entrepreneurship and job creation.

    These included the Future Mobility Campus Ireland, based in Clare, which explores the potential of autonomous, connected and electric vehicles, UCDNova’s Ag Tech innovation centre in Kildare and the Clermont Hub in Wicklow which focuses on content creation and draws on the region’s established film and audio/visual track record.  The 26 projects were supported under the Regional Enterprise Development Fund, which has seen €100m invested in similar projects since 2017.

    Given the potential impact of Brexit, particularly in the Border region, 11 similar projects designed to cluster expertise and innovation were supported with €17m in support under the Border Enterprise Development Fund in 2020.

    These were strategic initiatives, closely linked to government regional policy, with a medium to long-term focus on supporting regional enterprise.

    However, due to Covid-19, Enterprise Ireland moved last year to provide more agile interventions to regional businesses assist them to reset and recover.

    Ensuring that viable companies had the access to finance was an important necessity.  Through the government-backed ‘Sustaining Enterprise Scheme’ Enterprise Ireland allocated €124m last year to support more than 400 companies employing more than 10,000 people.  The majority of this funding went to regionally based companies.

    Similarly, €8.2m in funding for 95 enterprise centres, which are critical to the start-up ecosystem and future job growth regionally, was made available in September.

    Retail business across Ireland also benefitted from the Online Retail Scheme which saw 330 retailers allocated €11.8m in funding to enhance their online offering, reach new customers and increase sales.

    Through a mix of strategic funding aimed at long-term enterprise development and more agile funding supports Enterprise Ireland has helped to sustain jobs throughout Ireland in 2020.  We’ve also supported those sectors, such as cleantech, construction and life sciences which continued to grow and create jobs last year.

    The pandemic will have lasting effects including how we work and where we work.  Many of these long-term changes can complement strong local and regional economies.  A key element of the Powering The Regions strategy was the potential of remote working and co-working hubs that Enterprise Ireland is committed to developing with our partners.  That potential has been accelerated by the changing work patterns evidenced in the past year. Now, more than ever, having a strategic approach to enterprise development is vital, and Enterprise Ireland looks forward to the role it can play as we recover and build for the future.

    By Mark Christal, Manager, Regions and Entrepreneurship at Enterprise Ireland.

    New African Dawn: Launch of the Continental Free Trade Agreement

    A new year usually brings with it hope, optimism and new resolutions. The first two weeks of 2021 have however been fraught with the on-going pandemic, Britain’s exit from the EU and increased protectionism and populism around the globe. In marked contrast with this tone, one continent is pushing forward with hope, optimism and new resolutions.

    The first of January 2021 saw the launch of the African Continental Free Trade Area (AfCFTA). This milestone agreement strives for greater trade cooperation on the continent. The aim is to bring together 1.3 billion people in a $3.4-trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization. This agreement comes into force, with support from 54 of the 55 countries recognised by the African Union (Eritrea being the sole exception) is a hugely positive move.

    The Agreement establishing the AfCFTA was signed in March 2018 and of the 54 Member States of the African Union that have signed, 30 countries have deposited their instruments of ratification with the Chairperson of the African Union Commission.

    The main objectives of the AfCFTA are to create a single market for goods and services, facilitate the movement of persons, promote industrial development and sustainable and inclusive socio-economic growth, and resolve the issue of multiple memberships, in accordance with the African Union’s Agenda 2063. The agreement lays a solid foundation for the establishment of a Continental Common Market.

    AfCFTA presents a significant opportunity to boost intra-regional trade as well as increase Africa’s negotiating position on the international stage. Intra-African trade has always been relatively low. In 2019, only 15% of Africa’s $560-billion worth of imports came from the continent – compare this with a figure of 68% in the European Union (UNCTAD).

    In addition, many African nations have struggled to develop better-enabling environments for attracting investment and it should follow that this agreement will help to make the continent an increasingly attractive location for foreign companies seeking to penetrate its huge market potential.

    This landmark agreement is off the starting block but there is much to be negotiated to reach the desired goal of #OneAfricanMarket.

    Under AfCFTA trading, with an aim to eliminate export tariffs on 97% of goods traded on the continent, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and businesses of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for reporting of NTBs has been put in place (www.tradebarriers.africa).

    In parallel to the AfCFTA, the African Union has also introduced the Protocol on Free Movement of Persons.

    Though it will be years before the AfCFTA is fully implemented, the significant steps that have been taken to get the agreement to this point should not be underestimated, particularly in the current difficult global environment. Increasing prosperity on the African continent will ensure that it continues to be a continent of great interest to Irish exporters.

    Enterprise Ireland has been assisting Irish companies to navigate the Sub-Saharan African market through our office in Johannesburg, along with an established and growing network of industry specialists across the continent. Contact us to learn more about the opportunities for your business in this growing export destination.

    Nicola Kelly, Senior Market Advisor, Middle East, Africa & India

    Conor O’Donovan: Brexit disruption can be offset by Look for Local campaign

    Thousands of Irish companies have been availing of the opportunity to promote their business through the Look for Local campaign, which was launched in November by the Local Enterprise Offices

    Backed by the Department of Enterprise, Trade and Employment in partnership with Enterprise Ireland and the local authorities, the Look for Local campaign aims to highlight small Irish businesses in every sector, asking individuals to support businesses in their locality when looking for goods or services.

    “The campaign is tapping into the deep well of goodwill towards local businesses that exists in communities throughout Ireland,” says Conor O’Donovan, head of global marketing and corporate communications at Enterprise Ireland. “Local companies across a range of sectors are featured on the Local Enterprise LookforLocal website.

    “It is supported by national and local advertising and marketing,” he adds.

    “We want to try and encourage more consumers and businesses to look local if they require goods or services in the period ahead.”

    He advises any small business which wants to be featured on the LookforLocal website to contact their local LEO to make arrangements.

    “More than 4,200 businesses are benefiting from the campaign which has generated excellent traction online after just a few weeks.”

    The campaign is of particular relevance to companies which have pivoted and changed their business models during the year in response to the disruption caused by the Covid-19 pandemic. Since January, the LEOs have approved over 11,000 Trading Online Vouchers for small Irish businesses, helping them to establish an online trading presence, or adapt it, under the National Digital Strategy.

    In addition, 330 retailers have been approved for €11.8m in funding as part of the government’s Covid-19 Online Retail Scheme, which is administered by Enterprise Ireland. The scheme is targeted at retailers which are looking to enhance their current online presence.

    An online presence is also increasingly important for exporters. “A trend we’ve been seeing is that international buyers will search online before making contact with a potential supplier. It’s essential that Irish exporters have strong online visibility.”

    Many small local exporting companies will now have to contend with the additional disruption caused by Brexit.

    A key Brexit mitigation strategy for exporting firms is market diversification and the Enterprise Ireland Irish Advantage website offers them a shop window to buyers across the world to aid them in its execution.

    Exporters and potential exporters interested in being promoted on the Irish Advantage website should contact Enterprise Ireland or their Local Enterprise Office,” he said.

    O’Donovan also advises businesses to visit Enterprise Ireland’s Prepare for Brexit website.

    “The site is full of resources and information to help businesses get ready for Brexit.

    “On January 1 the UK will become a third country as far as trade with the EU is concerned. The Brexit Readiness Checker will take you through all the essential steps to take, including customs,” he says.

    “Revenue has estimated that customs declarations will increase from 1.2 million a year at present to 20 million a year. There has been a massive uptick in visits to the site in recent months. The message is getting through that being better-informed means being better prepared and that makes for better outcomes.”

    Irish companies are, by and large, retaining their existing overseas contracts, but new contracts are down this year as a result of Covid-19.

    “Exporters can’t jump on planes or trains or go to trade shows, so we are facilitating them to connect with new buyers online and encouraging them to avail of funding, advisory and innovation supports available from both Enterprise Ireland and LEOs”, he said.

    And there is a high degree of awareness of those supports. “That was one of the very encouraging findings of some recent Department of Finance research,” says O’Donovan.

    “Almost 90pc of SMEs are aware of Enterprise Ireland supports and initiatives while over 80pc are aware of what’s available from the LEOs. That awareness will be of critical importance as we strive to help Irish companies become more innovative, competitive and diversified in order to succeed and take advantage of the opportunities that will arise in the coming year and beyond.”