DC Foods Expands to AGOA-Driven Export Growth to the USA

The company, which produces a range of frozen fruit and ice cream products, has experienced a surge in demand, especially in the US market, where its products are now widely available in Costco stores.

DC Foods, a local company based in the Coega Special Economic Zone (SEZ) in Gqeberha, is finalizing its factory expansion in response to the significant growth of its exports to the United States, driven by the benefits of the African Growth and Opportunity Act (AGOA). The company, which produces a range of frozen fruit and ice cream products, has experienced a surge in demand, especially in the US market, where its products are now widely available in Costco stores.

Established in 1996, DC Foods initially targeted Japan for its exports, with a modest team of 160 workers. However, as the company expanded, it relocated its manufacturing operations to the Coega SEZ, taking advantage of the incentives and logistical support provided by the zone.

AGOA has been instrumental in this growth, according to the company’s Financial Manager, Marc Larter, who noted that the duty-free access to the US market under the agreement has been crucial to the company’s success. “Without AGOA, exporting to the US would have been significantly hindered due to high duties,” said Larter.

AGOA, which offers duty-free access to over 1,800 products for eligible sub-Saharan African countries, has enabled DC Foods to grow its footprint in the US, leading to double-shift production at its factory and the creation of 3,500 jobs, mainly for the nearby Motherwell township community. This expansion is part of the broader economic benefits of Special Economic Zones (SEZs), which are central to the Department of Trade, Industry, and Competition's (the dtic) industrialization strategy.

Larter emphasized the role of the Coega SEZ, highlighting its tax incentives, security, and reliable infrastructure, including coordinated systems to manage challenges like electricity supply. These factors have contributed to the company’s ability to scale up production in response to growing demand.

The company's growth is part of a broader push by President Cyril Ramaphosa to encourage deeper US investment in South Africa. Speaking at the SA-US Interactive Business Forum in New York, President Ramaphosa urged US businesses to seize the opportunities created by South Africa’s focus on economic recovery and structural reform.

The expansion of DC Foods exemplifies the benefits of trade agreements like AGOA and highlights the importance of SEZs in fostering industrial development, job creation, and economic growth in South Africa.