46 AUGUST–SEPTEMBER 2019 | International Boat Industry ibinews.com
Markets & Regions
OVERVIEW | SOUTH AFRICA
across the country and ultimately economic output
dropped further than any other time since the
depths of the financial crisis in 2009. Everyone is
now nervous that the 2019 Q2 figures when released
will show that the country has slipped back into
recession, the official definition of which is two
successive quarters of GDP contraction. The country
was in recession for the first half of 2018.
Unsurprisingly the market for imported boats is
not great and not just for currency and confidence
reasons. There is considerable wealth in the country.
Look no further than the Bentley, Porsche and
Ferrari showrooms off Cape Town’s Dock Road.
But geography is an issue. There are only some 20
harbours and marinas suitable for pleasure boats and
the coastline is generally exposed, Atlantic Oceanto the west, Indian Ocean to the east and nowhere
but Antarctica to the south. Probably 65-70% of the
country’s marine industry is located in the Cape
Province, although there is also significant activity in
St Francis Bay, Knysna, Port Elizabeth, Durban and
on inland waters around Johannesburg. And another
important factor with any coastal boating in South
Africa is the weather. It blows up quickly, often and
hard. There are big surf, kite-surf and kayak scenes,
principally because they can respond to weather
changes quickly and do not require infrastructure.
The market is relatively small as regards mainstream
boating and what demand there is now is relatively
depressed. Of the boats that do get sold locally, a
reasonable proportion go elsewhere on the continent- Mozambique, Seychelles, Madagascar etc. Most of
the local fleets are made up of older models, many of
them looking used and/or abused.
TAX/FINANCE CHALLENGES
For those prepared to buy a new boat or equipment
for local consumption, VAT will now add 15%. It
was 14% until the end of March 2018. There is also a
boat registration scheme in place, a relatively simple
and inexpensive procedure for local listings, but
to get a full listing and proper ship’s papers (should
the owner wish to take their boat beyond terotorial
waters) is more complicated and relatively expensive.
Insurance isn’t mandatory as far as the state is
concerned, but most boat/yacht clubs require certain
levels of compliance. Despite the boat registration
scheme, no lenders offer boat loans or mortgages.
The risk of financing a movable asset in Africa and
the absence of any reliable pre-owned valuation
process is simply deemed too great.NOW OWNED BY exhibition and conference
giant Messe Frankfurt – 2,800 people, 130 country
subsidiaries and €3.6bn in sales – the Cape
Town International Boat Show has emerged as
the industry’s main showcase, although other
events in Johannesburg and Durban come and
go sporadically. Cape Town is the only place forCAPE TOWN INTERNATIONAL BOAT SHOW
a truly national event and industry body SABBEX
(South African Boat Builders Export Council),
according to Bruce Tedder and Vanessa Davidson,
is keen to see it firmly established as the pre-
eminent Africa event.
“Certainly there’s an increasing international
interest, although the show has been busier,”admits Kathryn Frew, Messe Frankfurt’s portfolio
director Cape Town. “Back around 2005/06,
the show was held briefly across two venues –
ashore at the CTICC (Cape Town International
Convention Centre) and in-water at Cape Grace
Marina. But the market is simply not big enough
to sustain more at the moment. What we have had
now since 2017 is just the in-water component and
that’s sustainable.”
The show’s entrance is on the North Wharf,
just outside the Aquarium. The next edition takes
place Friday to Sunday, October 18-20, the same
three days as last year, and from 9:00-18:00 for the
first two days and 9:00-17:00 on the final Sunday.
The 2018 edition included 52 boats in-water –
roughly 60% power, 40% sail – the biggest of
which was the Two Oceans-built 75ft SY HQ2. The 2018 edition of the Cape Town show
featured 52 boats in-water, 60% power and
40% sail Royal Cape Yacht
Club, Cape Town