The Deputy Minister of Trade and Industry, Ms Elizabeth Thabethe says the partnership between Brazil and South Africa is on a solid footing in terms of political and business relationships. However, there is a vast reservoir of untapped potential in the areas of bilateral trade and investment. Deputy Minister Thabethe was speaking at the investment seminar held in Sao Paulo, Brazil yesterday as part of the Investment and Trade Initiative (ITI) organised by the Department of Trade and Industry (the dti).
“Both Brazil and South Africa have globally competitive expertise and products in a range of value-adding sectors which we are sharing with global trading partners, but not necessarily yet with each other. As such we are keen to further enhance bilateral trade by also looking at developing complementarities and increasing bilateral sales of value-added goods. It is in the area of value added trade where substantial returns can be found,” she added.
Thabethe said the South African government in cooperation with industry undertake missions to Brazil, as well as participate in Brazilian fairs throughout the year in order to develop trade and investment opportunities between the two countries.
“Key amongst these activities is the ITI, which is one of our flagship events that the South African government has developed to take our companies to strategic partner countries,” she added.
Thabethe told the Brazilian business delegates that South Africa was not only a vibrant and growing economy, but is also a unique base for doing business in the African continent.
“South Africa has well developed infrastructure and telecommunications as well as a strong banking and financial systems. In addition, South African companies have developed skills and expertise in operating on the continent, whilst our financial institutions are experienced in funding projects and operations in various African countries,” she emphasised.
According to Thabethe, Africa is one of the fast growing regions in the world with a population of close to one billion people, many of whom are young people, presenting the new frontier in consumer growth.
“Furthermore, the recent studies indicate that seven of the fastest top ten growing economies in the world are African countries. This surely positions South Africa as a strategic partner to Brazil,” she highlighted.
The Ambassador of South Africa to Brazil Mr Mphakama Mbete, told delegates that South Africa’s financial market development and sophistication as well as its professional services and financial expertise are globally recognised. He added that the regulation of the Johannesburg Stock Exchange (JSE) is ranked number one in the world, as is the strength of the country’s auditing and reporting standards.
“Virtually all business activities in South Africa are open to international investors and foreign investments and they are treated in the same way as domestic investments. In this regard there are various incentives such as export initiative programmes, tax allowances and trade regulations. This situation provides for a predictable and safe investment environment in South Africa,” he said.
The ITI is part of the Department of Trade and Industry's (the dti) Export and Investment Promotion Strategy that focuses on targeted high growth markets with the objective of creating investment and export opportunities for South African companies and of promoting South Africa as a trade and investment destination.
Enquiries:
Sidwell Medupe-Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
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