Spanish counterpart
4 July 2006
Pretoria - South African Deputy Foreign Minister Aziz Pahad will hold
bilateral political and economic discussions with his Spanish counterpart
Secretary of State Dr Bernardino Leon Gross at the Diplomatic Guesthouse in
Pretoria on Wednesday, 5 July 2006.
Deputy Minister Pahad's consultations with his Spanish counterpart come
within the context of South Africa's priority to consolidate the African agenda
through the promotion of North-South co-operation through, amongst others, the
European Union (EU).
In this regard, the Spanish government has a greater awareness and
commitment to challenges facing the developing world, inter alia Africa. Prime
Minister Zapatero has undertaken to significantly increase funding (up to UN
benchmark of 0,7 percent of gross domestic product (GDP) for development
co-operation inter alia in Africa and recently announced an increase in
Official Development Assistance (ODA) to Africa from Euro 200 million to Euro
400 million. He also announced the cancellation of African debt of
approximately Euro 200 million. Spain is also currently exploring a new foreign
policy with Africa and hosted a seminar on Africa as a new policy priority in
May 2005, in which Deputy Minister Pahad participated.
Issues on the agenda of discussions between Deputy Minister Pahad and
Secretary of State Gross are expected to include among others:
* bilateral political and economic discussions between both countries;
* the Spanish âNew Plan for Africa;â
* proposed trilateral co-operation projects in Burundi, the Sudan and Cote
d'Ivoire;
* conflict resolution and peacekeeping in Africa including Cote dâIvoire, the
Sudan, the Democratic Republic of Congo (DRC), Burundi, Equatorial Guinea and
Western Sahara;
* the Middle East crisis;
* the Iranian nuclear issue;
* negotiations between the Spanish government and the Basque separatist group
ETA;
* the alliance of civilisations initiative; and
* the comprehensive reform of the United Nations (UN).
Secretary of State Gross is expected to depart from South Africa on 5 June
2006.
Bilateral economic relations
The Spanish economy is becoming well represented in South Africa. South
Africa was in 2004 the first receptor of Spanish outward investments in Africa.
In the period between January to June 2005, South Africa received Spanish
investments worth Euro 48 million. This amount was mainly due to the Acerinox
acquisition of another 12 percent in Columbus Steel for Euro 47,5 million. In
the same period South Africa was the 12th destination for Spanish outward
investments moving from the 43rd position that she had occupied in the same
period in 2004.
Sectors where Spanish companies have invested their money in South Africa
(2000 to 2004) are metals (Euro 245 million); manufacturing on non-metallic
minerals (Euro 119 million); automobiles (Euro 26 million); wood and cork (Euro
26 million) construction (Euro 15 million) and chemicals (Euro 4 million).
It is worth noting that Samancor Ltd (a South African subsidiary of BHP
Billiton plc) and the Industrial Development Corporation of South Africa Ltd,
are the three equal partners in the Columbus Joint Venture which owns and
operates an integrated stainless steel mill for flat products at Middleburg in
Mpumalanga Province.
The mill is one of only two facilities in the world with the potential to
make use of liquid ferrochrome in the production process. Upon completion of
the transactions, the Acerinox group has become the world's third largest
stainless steel producer with an annual capacity of 2,5 million tonnes.
Moreover, in 2001 the Spanish multinational automotive component group,
Molan Pino, announced the establishment of a R12 million high technology plant
in East London, to complement the Daimler-Chrysler Mercedes-Benz production in
the Eastern Cape.
Most of the Spanish companies are not just selling products in South Africa,
but are using South Africa as a platform to produce and export to markets in
the region and beyond.
In the period between January and December 2005, South Africa exported
products worth R8,7 billion to Spain in comparison to R7,14 billion for the
same period in 2004 and R6,15 billion in 2003. In 2005, South Africa imported
products worth R5,61 billion from Spain in comparison to R4,32 in 2004 and
R3,84 in 2003.
The recent signing of the Non-Double Taxation Agreement by Minister Manuel
on 23 June 2006 (together with the agreement on the Promotion and Reciprocal
Protection of Investments of 1999) is expected to create a good base for
further economic engagement as Spanish companies will begin to see South Africa
as a safe destination with all the legal protection they require.
In addition, the visit of Spain's Deputy Minister of Trade, Industry and
Tourism with a delegation of 30 CEOs of major Spanish companies on 25 to 27
September 2006 is seen as a significant initiative to further boost bilateral
economic ties.
Thus, given the healthy growth of the Spanish economy and the strong
international outlook of Spanish companies, there exists significant potential
for increased foreign direct investment from Spain to South Africa in the
following sectors: automobile, agro-food processing, textiles, chemicals,
tourism infrastructure and based metal sectors.
Co-operation projects between South Africa and Spain:
* Establishment of African Tourism Institute by the Spanish for the training
of trainers and other capacity building projects (R20 million projects with
continued funding).
* Spain hosted in South Africa and in partnership with South Africa and the
New Partnership for Africaâs Development (NEPAD) tourism sector, an Africa
Tourism Development Conference this year.
* Spain has publicly indicated that increased ODA will be targeted at Africa
and South America.
* Progress in 2005 included South Africa partnering the Spanish in hosting
the African Regional Tourism Workshop (June 2005, Randburg), and assisting
Spain in cultivating relations with the following two NEPAD sectors:
* establishing co-operation with the National Farmers Union (NFA) in SA for
broader co-operation in the NEPAD agriculture sector; and
* linking water management with the Zaragoza Expo 2008, which has its focus
on water management. These initiatives have provided Spain with genuine avenues
to initiate its policy shift towards Africa;
* current initiatives for building closer co-operation include exploration
of trilateral co-operation in respect of NEPAD projects, where for example, the
Spanish have indicated their willingness to assist Equatorial Guinea with
'state building' initiatives but would like to approach this as a joint
co-operation project with South Africa.
Programme for official visit to South Africa by Spanish Secretary of State
Dr Bernardino Leon Gross
Date: Wednesday, 5 July 2006
Time: 12h00 - arrival of media for photo opportunity on commencement of
discussions between Deputy Minister Aziz Pahad and Spanish Secretary of State
Dr Bernardino Leon Gross
Venue: Diplomatic Guesthouse 201 Matroosberg Road, Waterkloof Heights,
Pretoria
(Please present press cards)
Time: 12h30 - Deputy Minister Aziz Pahad and Secretary of State Leon Gross
begin discussions.
Media in attendance for photo opportunity.
Time: 15h00 - arrival of media ahead of joint press conference by Deputy
Minister Pahad and Secretary of State Gross on conclusion of discussions.
Venue: Diplomatic Guesthouse, 201 Matroosberg Road, Waterkloof Heights,
Pretoria
(Please present press cards)
Contact:
Manusha Pillai
Cell: 082 389 3587
Time: 15h30 - joint press conference
For further information contact:
Ronnie Mamoepa
Cell: 082 990 4853
Manusha Pillai
Cell: 082 389 3587
Issued by: Department of Foreign Affairs
4 July 2006
Source: SAPA
