12 October 2006
Pretoria - South African Deputy President Phumzile Mlambo-Ngcuka supported
by Deputy Foreign Minister Aziz Pahad will pay an official visit to Australia
and New Zealand from 16 - 21 October 2006 to strengthen political, economic,
cultural and trade links with both countries.
Deputy President Mlambo-Ngcuka will hold discussions with her counterparts,
Deputy Prime Ministers Mark Vaile in Australia and Michael Cullen in New
Zealand. During the visit Deputy President Mlambo-Ngcuka is expected to pay
courtesy calls on both Prime Minister Howard in Canberra and Prime Minister
Helen Clark in New Zealand.
Deputy President Mlambo-Ngcuka's visit to the region comes within the
context of promoting the Accelerated and Shared Growth Initiative for South
Africa (AsgiSA) and the Joint Initiative for Priority Skills Acquisition
(JIPSA) programmes, with a view to a faster and shared economic growth in South
Africa, whilst strengthening and consolidating political and economic relations
with the two countries.
In this regard, Deputy President Mlambo-Ngcuka will also during the visit
explore opportunities for partnerships between South Africa and the two
countries with a view to infrastructure development, sector investment (or
industrial) strategies, skills and education initiatives, second economy
interventions, macro-economic issues and public administration issues.
In addition, the visit will also afford the Deputy President an opportunity
to interact with other key political, economic and trade role-players.
The Deputy President's visit to Australia also takes place against the
background of the scheduled session of the South Africa and Australia Joint
Ministerial Commission on 18 October which will be co-chaired by Minister of
Trade and Industry, Mr Mandisi Mpahlwa and his Australian counterpart Minister
Warren Truss.
Deputy President Mlambo-Ngcuka is expected to return to South Africa on
Saturday, 21 October 2006.
Bilateral economic relations
Australia
South Africa's economic relations with Australia are excellent. Australia is
South Africa's third largest trading partner in Asia, after Japan and the
People's Republic of China (PRC) and seventh largest trading partner globally.
South Africa is Australia's biggest trading partner on the African continent.
Fifty percent of Australian exports to Africa are earmarked for South Africa.
Similarities in sectors such as the wine industry, mining technology and
equipment and automotive components, to name but a few, give rise to numerous
joint venture/bilateral trade opportunities.
South Africa is Australia's 19th largest trading partner and is by far
Australia's largest and most dynamic market in Africa. Australian exports to
South Africa were mainly coal, crude petroleum and nickel and South African
exports to Australia were notably passenger motor vehicles (mostly BMW 3 Series
vehicles) worth $A554 million as well as furniture, pig iron, paper and textile
products.
Two-way investment flows between Australia and South Africa have expanded
since the demise of the apartheid system. South Africa dominates stocks of
African investment into Australia (currently the 17th largest foreign investor
up from 23rd in 1993 - 1994). Australian investment in South Africa has also
increased mainly in mining, mining equipment, agriculture, agribusiness and
infrastructure and services and trade and dominates Australian investment into
Africa.
Development co-operation
Even though Asia and the Pacific Islands constitute Australia's foreign
policy priority, it is also investing substantial amounts of money into the
African region by means of foreign direct investments as well as overseas
development assistance (ODA). South Africa receives priority when it comes to
development co-operation and assistance with Australia providing approximately
R480 million in development assistance to South Africa since 1994.
Development co-operation between South Africa and Australia is manifested in
a bilateral strategic programme which focuses Australian assistance more
tightly on South Africa and Mozambique in southern Africa, with Kenya, Tanzania
and Uganda in east Africa, benefiting from international and non-governmental
organisation (NGO) programmes.
Trade statistics in rand value
Trade with Australia
2003
SA Exports: R5 723 886 000
SA Imports: R6 112 773 000
Balance: -R388 887 000
Total Trade: R11 836 659 000
2004
SA Exports: R7 157 620 000
SA Imports: R7 247 278 000
Balance: -R89 658 000
Total Trade: R14 404 898 000
2005
SA Exports: R9 704 431 000
SA Imports: R7 353 296 000
Balance: R2 351 135 000
Total Trade: R17 057 727 000
New Zealand
South Africa is New Zealand's primary market in sub-Saharan Africa given its
unique combination of a first-world economic infrastructure and large emerging
market economy. The gradual opening of the South African economy to
international competition and the stable and well managed political and
macro-economic environment is viewed as offering potential investors a
profitable base from which to launch their Southern Africa operations.
Since 1990, bilateral trade has increased nine-fold to the point where South
Africa is currently New Zealand's 33rd most important export market and 18th
most important source of visitors. In 2004, New Zealand exported goods to the
value of $101,7 million to South Africa and purchased $129,2 million worth of
South African products.
The main exports are milk and cream, cheese, curd and mutton. The major
import is wine.
As a consequence of the developing dairy product market in Southern African
countries, the New Zealand Dairy Board opened an office in Johannesburg in
1992. New Zealand Trade and Enterprise (NZTE) has representation in
Johannesburg. A New Zealand-South Africa Business Council (NZSABC) has been
established in New Zealand to promote trade and economic linkages with South
Africa.
Trade statistics in rand value
Trade with New Zealand
2003
SA Exports: R432 261 000
SA Imports: R486 602 000
Balance: -R54 341 000
Total Trade: R918 863 000
2004
SA Exports: R644 840 000
SA Imports: R545 102 000
Balance: R99 738 000
Total Trade: R1 189 942 000
2005
SA Exports: R661 002 000
SA Imports: R723 496 000
Balance: -R62 494 000
Total Trade: R1 384 498 000
Official Development Assistance (ODA)
ODA programme funding is currently directed to NGOs in Zambia, Zimbabwe and
Mozambique through United Nations (UN) agencies. In 2004, an amount of NZ$420
million was channelled to Southern African countries through multilateral
institutions. South Africa remained the key focus and recipient of New Zealand
ODA in Africa. During the past five years an annual amount of NZ$1,65 million
has been committed to HIV and AIDS community awareness activities and on
education programmes in KwaZulu-Natal and the Eastern Cape. A further focus of
engagement has targeted the exchange of professional skills and knowledge in
such areas as town planning, land disputes and early education learning
programmes.
For further details contact:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
12 October 2006
