A Pahad and J Moleketi conclude four-nation visit

18 July 2007

Madrid: South African Deputy Foreign Minister Aziz Pahad and Finance Deputy
Minister Jabu Moleketi will today, Wednesday, 18 July 2007, conclude their
official visit to Spain, the last country in a four-nation visit that included
Cuba, Panama and Mexico.

Deputy Minister Pahad and Moleketi on Tuesday, 17 July 2007, together with
his counterpart Secretary of State for Foreign Affairs Bernadino Leon Gross,
co-chaired the fourth session of the South Africa-Spain Annual Political
Consultations in Madrid Deputy Minister Pahad also met with African Ambassadors
resident in Spain earlier today, Wednesday, 18 July 2007.

Deputy Minister Moleketi on Tuesday, 17 July 2007 held discussions with the
Deputy Director-General for Commercial Policy on the Mediterranean Alberto
Cerdan. Earlier on Wednesday, 18 July 2007, Deputy Minister Moleketi held
discussions with his counterpart, Secretary of State David Vegara Figueras
responsible for Economic Affairs and Policy Formulation in the office of the
Prime Minister, met with the Secretary-General of the United Nations World
Tourism Organisation Francesco Frangialli and Spanish captains of industry from
tourism, sport and construction.

South Africa-Spain annual political consultations

Deputy Minister Pahad and Secretary of State for Foreign Affairs Leon Gross
considered a wide range of issues including bilateral political and economic
relations, developments within the European and African Unions and co-operation
with as well as an assessment of developments within multilateral fora.
Secretary of State Gross indicated to the delegation that the strong political
relations that exist between both countries should be used to strengthen
economic relations.

Accordingly, Secretary of State Gross briefed the South African delegation
that although South Africa remains an impressive investment destination for
Spanish business people ways to attract more investment to South Africa and
vice versa should be explored. Despite the increase in two-way trade between
South Africa and Spain over the past five years and an increase of 1 473% in
Spanish direct investments in South Africa between 2003 and 2005, opportunities
to increase trade and investment relations remain plentiful.

South Africa's exports to Spain in 2006 totalled €1,4 billion (an increase
of 7,6%) on the 2005 figure. Spain is South Africa's ninth most important
export market. Spanish exports to South Africa grew by 16,9% in 2006. In the
past decade, South Africa's exports to Spain increased by 274% and Spanish
exports to South Africa recorded a 300% growth. Regarding investments, in 2005
South Africa remains the largest recipient of Spanish outward investment in
Africa. Other African recipients were Namibia (Euro 51,55 million), Morocco
(Euro 17,11 million), Cape Verde Islands (Euro 8,47 million) and Algiers (Euro
1,97 million).

In the field of Environmental Affairs and Tourism, both sides considered the
following areas of co-operation between both governments: human resource and
skills development, investment promotion, projects under the banner of the
Ministry of Industry, Tourism and Administration, fisheries, climate change
desertification and land degradation and air pollution and waste
management.

In the health sector, the South Africa and Spanish governments have agreed
to investigate co-operation in the fields of maternal and women's health, child
health, training of health professionals including mid-level health workers,
support for strengthening of health systems in South Africa and utilisation of
regional public health schools in Spain to train professionals from South
Africa.
Both delegations also agreed to establish trilateral partnerships in third
African countries in which both Spain and South Africa have existing
co-operation projects, inter alia, Angola, the Democratic Republic of Congo and
Mozambique. Deputy Minister of Foreign Affairs Pahad briefed the Spanish
delegation of his recently concluded visit to Latin America and expressed that
the African continent would keenly look to Latin America for experiences in
addressing the challenge of poverty and underdevelopment as well as democracy
building following decolonisation seeing that Latin America had many more years
of such experience compared to Africa's 50 years of decolonisation.

Accordingly, Deputy Minister Pahad briefed Secretary of State Gross on
African initiatives of conflict resolution, peacekeeping and post conflict
reconstruction and development, inter alia, the Great Lakes region, Western
Sahara, Sudan and Darfur, Somalia and Côte d'Ivoire. The Spanish government
expressed support for South Africa's efforts to support conflict resolution,
peacekeeping and post-conflict reconstruction and development in Africa as well
as the African position that Africa determines African solutions to African
challenges.

Deputy Minister Pahad and Secretary of State Gross also looked at the crisis
in the Middle East and Lebanon as well as nuclear non-proliferation in Iran. On
the crisis between Palestine and Israel, both sides reiterated that a just and
long lasting peace between the people of Palestine and Israel would only be
sustainable when a State of Palestine exists side by side with Israel within
secure borders.

In the regard, the South Africa and Spanish governments called on the
governments of Israel and Palestine to remain focused on achieving this goal.
In addition, the South African government called on the international community
to drop sanctions against the people of Palestine and to support the
Palestinian government. Both sides would monitor the outcomes of the quartet
meeting to be held on Thursday, 19 July 2007.

Regarding Lebanon, both sides expressed support for efforts to restore
peace, security and stability to Lebanon and called on the international
community to support post-conflict reconstruction and development in Lebanon.
Both delegations also discussed the possibility of trilateral co-operation
between South Africa, Spain and third countries with a view to share
experiences of democracy building and good governance. One such co-operation
project is currently being implemented with Bolivia. The Spanish delegation
also expressed a desire to have similar co-operation with the Great Lakes
region.

Deputy Minister Pahad also briefed the Spanish delegation of the outcomes of
the recently concluded African Union Summit in Accra, Ghana that considered the
political and economic integration of Africa under the banner of the "Grand
Debate." Deputy Minister Pahad explained that this political and economic
integration remains the long-term goal of the continent and as a means to
achieve this, among others, sub-regional groupings should be strengthened.

Deputy Minister Pahad and Secretary of State Gross also considered the
matter of the Africa-European Union Summit that has not been held since 2000.
Both sides expressed hope that the summit would meet under the Portuguese
Presidency of the European Union at the end of 2007.

Deputy Minister Pahad and Secretary of State Gross looked at the outcomes of
the recently concluded Group of 8 +5 meeting. Deputy Minister Pahad briefed his
counterpart that the +5 grouping is becoming increasingly relevant as a group
that addresses the needs of the developing world within the context of the
developed world and how it can assist in this process. Deputy Minister Pahad
also indicated that although recent development reports indicate that Africa
has made some progress in addressing its poverty and underdevelopment
challenges, the reports also state that poverty levels continue to rise albeit
at a slower pace. Both sides agreed that the developed world has a moral
responsibility to meet its official development assistance targets of 0,7% of
gross domestic product (GDP) as well as all the other commitments undertaken at
the 2005 Gleneagles G8 Summit.

Accordingly, Spain reiterated its commitment to meet this target. Deputy
Minister Pahad briefed his Spanish counterpart of the African position on the
reform of the United Nations and its institutions. Both sides indicated that
they have similar views on the architecture of international organisations and
remain committed to the reform of the United Nations and its institutions with
particular reference to the Security Council which should be more
representative and transparent. In this regard, Deputy Minister Pahad and
Secretary of State Gross also reiterated their commitment towards the
strengthening of multilateralism. Both sides also agreed to continue and
strengthen co-operation in multilateral fora.

Deputy Minister of Finance Moleketi's programme

Deputy Minister Moleketi briefed his Spanish hosts of developments in South
Africa's economy including some of our challenges, inter alia, the existence of
a first developed economy running parallel to a second underdeveloped economy
and the major challenge of upgrading our infrastructure to meet the needs of
demands of a rapidly expanding economy. Deputy Minister Moleketi also briefed
the Spanish government on the implementation of the Black Economic Empowerment
(BEE) policy in South Africa and addressed the concerns expressed on the
unpredictability of the regulatory framework in South Africa. Deputy Minister
Moleketi also briefed the Spanish Government of preparations towards the
hosting of the 2010 Soccer World Cup.

In addition, Deputy Minister Moleketi briefed the Spanish delegation on the
implementation of Accelerated and Shared Growth Initiative for South Africa
(AsgiSA) and Joint Initiative on Priority Skills Acquisition (Jipsa) in South
Africa as a means to uplift the economy and address South Africa's skills
development challenges. The Spanish Secretary of State for Economic Affairs and
Policy Formulation provided an overview of the Spanish Economy which has been
steadily growing at 3,5% per annum. Spain has identified four engines of growth
in order to sustain this trend. These engines of growth are the exchange into
the Euro, the lowering of interest rate, the development of infrastructure that
benefit from European Union structural fund and an increase in immigration
which has also stimulated economy growth.

Both sides also discussed developments within the Doha Round of negotiations
and the reform of the World Bank and the International Monetary Fund in order
to increase the voice and participation of developing countries especially
African ones. The Spanish delegation indicated it was committed to the reform
process and supports the increase of the basis vote of the developing
countries.
Many opportunities exist for Spanish companies to invest in South Africa
bilaterally and under the umbrella of the Spanish Africa Plan. Projects under
the New Partnership for Africa's Development (Nepad) banner will also be
investigated and opportunities for co-operation explored.

Representatives at the meeting of the confederation of Economic and
Commercial Chambers in Spain looked at business opportunities that would be
provided by South Africa's hosting of the 2010 Fifa Soccer World Cup. In
addition, some Spanish business federations briefed Deputy Minister Moleketi
that they are already participating in business ventures in South Africa, inter
alia, water sanitation, mobile clinics, toll road management and infrastructure
projects.
Multilateral co-operation would also be facilitated through the European
Union–Southern African Development Community (SADC) Economic Partnership
Agreement (EPA) to be finalised by the end of 2007.

The South African and Spanish governments have agreed to investigate ways of
increasing two-way trades in a manner that will effectively address the trade
imbalance currently in South Africa's favour. The 2010 Fifa Soccer World Cup
being hosted by South Africa also remains an area through which both countries
can also explore co-operation projects.

In addition, South Africa has proposed the establishment of a Joint
Committee on Trade and Economic Relations that will facilitate the ongoing and
regular contract between South Africa and Spain on these afore-mentioned
issues. The South African delegation was briefed that Spain has increased its
list of priority markets from nine to eleven. South Africa expressed a keenness
to be considered a candidate country when the policy is reviewed and additional
countries added to the list. Deputy Ministers Pahad and Moleketi will return to
South Africa on Thursday, 19 July 2007.

Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
18 July 2007
Source: SAPA