US tariffs drive strategy shifts at inaugural African Boating Conference
Mayoral Committee Member for Economic Growth Alderman James Vos emphasised the sector’s economic significance, noting that US tariffs necessitate creative responses from both the government and industry.
"The city’s boat-building capability and capacity is an important story – it’s no small hobby. Nationally, the shipbuilding and boatbuilding sector employed 3,780 full-time equivalent jobs as of March 2024, with Cape Town accounting for approximately 65% of those jobs over the preceding nine years. In 2024, R4.3bn worth of Cape Town-made ships, boats, and floating structures were exported," Vos said.
Diversification as a mitigation strategy
Vos emphasised the need to diversify export markets and leverage trade agreements such as the African Continental Free Trade Area.
"We can further increase jobs by growing local suppliers for engines, electronics, and composites. Collaboration between investors, boatbuilders, tertiary institutions, and government agencies is critical to address skills shortages and other development bottlenecks," he added.
Ed Slack, editor-in-chief of International Boat Industry, provided a global context: "The industry is prone to boom-and-bust cycles. In 2024, the US market was dominant, but tariffs disrupted exports. The US is half the world’s market for boats – the ‘epicentre’ of the boat market – and the tariffs have been a nightmare for EU manufacturers importing to the US."
Slack noted that, as a consequence, EU manufacturers were increasing their focus on new markets such as the Middle East, Asia, and Mexico.
Future-proofing the sector
Local players, including Ullman Sails International, noted the tariffs have prompted a shift in strategy.
CEO Michael England described the current phase as one of “disruption,” emphasising the need for diverse markets and flexible production.
Stephan Claasen, FNB business head: Western Cape, highlighted that while global uncertainty persists, past shocks show that recovery can be faster than expected, creating opportunities for strategic pivots.
“Trump and tariffs are disrupting the traditional way of doing things. He’s going to create new opportunities, even if they’re not where you expect … keep your powder dry so that you’re ready to pivot,” he said.
The conference also highlighted that innovation in boat design, production techniques, and supply chain management will be key to keeping South African manufacturers competitive internationally.
Panel discussions underscored that leveraging local talent and integrating technology into production processes could create resilience against future global shocks. Industry stakeholders noted that proactive government engagement and strategic partnerships across the continent could turn tariff-related challenges into opportunities for regional growth.
A first for leisure marine industry
The African Boating Conference marked the first dedicated recreational B2B event for the sector. Director Veda Pretorius said: "Much of the ‘Blue Economy’ discussion focuses on commercial activities like fishing and shipping. The leisure marine industry has unique challenges, requiring collaboration to realise its full economic potential."