of State for External Affairs Anand Sharma
23 March 2006
Tshwane - South African Deputy Foreign Minister Aziz Pahad will hold
bilateral political and economic discussions with his Indian counterpart,
Minister of State for External Affairs Anand Sharma in Tshwane on Friday, 24
March 2006.
Discussions between Deputy Minister Pahad and his counterpart come within
the context of South Africa's priority to promote South-South co-operation for
increased market access, trade and investment. In this regard, South Africa
together with India and Brazil constitutes the India-Brazil-South Africa (IBSA)
Forum, a historic partnership of countries of the South that aims to achieve
the afore-listed objectives in the interests of eradicating poverty and
underdevelopment while creating a better life for all people of the South.
Issues on the agenda of discussions between Deputy Minister Pahad and
Minister of State for External Affairs, Anand Sharma are expected to include,
among others:
* The status of bilateral political and economic discussions between both
countries that are governed through the Joint Ministerial Commission and the
South Africa - India CEOs Business Forum;
* A briefing on developments in the Southern African Development Community
(SADC) region and the Indian sub-continent, including the first India-SADC
Forum scheduled for Namibia in April 2006;
* Developments in the operationalisation of the institutions of the African
Union and the implementation of New Partnership for Africaâs Development
(NEPAD), including the current status of the Pan-African e-connectivity
project; and
* Developments within IBSA.
Bilateral Economic Relations
CEOs Business Forum
The Indo-South Africa CEOs Business Forum was launched in October 2004,
after President Kalam's State Visit to South Africa. Consisting of several
Indian and South African businesses, this Forum aims to assist in stimulating
trade and investment between the two countries.
The launch of the Indo-South Africa CEO Forum was attended by leaders of a
number of top companies from both countries, amongst them Mr Ratan Tata who is
also a member of President Mbeki's International Economic Advisory Council.
The second meeting of the CEOs Forum in Mumbai, on 2 May 2005, identified
the following areas of co-operation: Mining and minerals, gems and jewellery,
power generation, infrastructure development, information and communication
technology, pharmaceuticals, HIV/AIDS, and tourism. It was proposed that
Working Groups be set up for the areas that have not been covered by the
existing Working Groups. The Working Groups that are already in place include
ITC, Energy, Infrastructure, Education and Skill Development, Mining, Auto
components and Tourism.
Economic Relations
The main Indian products exported to South Africa are: motor-cars and
vehicles for the transport of goods, rice, medicaments, cotton, yarn finished
leather goods, machinery and instruments, handmade yarn fabrics, spices,
handicrafts and handmade carpets.
Main products imported from South Africa are chemicals, gold, silver, coal
and briquettes, iron and steel, inorganic and organic fertiliser, pulp and
waste paper, and precious and semi-precious stones.
Trade between South Africa and India continues to grow. In 2005, total
bilateral trade approached a level of R14.5 billion, with imports from India at
R7.02 billion and exports to India at R7.5 billion. India currently ranks as
South Africa's 13th most important export market and the 13th most important
import market.
The sheer size of the Indian economy (14th largest manufacturing economy in
the world) gives it an influential position in the global market in which South
Africa has a key interest. Since South Africa and India have similar
developmental challenges, their collective capacity in bargaining and voicing
concerns that affect their economies in international forums is made highly
effective. As a key emerging regional economy, India provides a platform for
the re-integration of the South African economy with that of South Asia.
Opportunities for closer co-operation in the following sectors have been
identified and form part of South Africa's trade development agenda in
India:
Capital equipment (construction and related infrastructure): South African
Airports companies made a successful bid for the upgrading of the Mamba
Airport. (However, there is some controversy around this bid concerning the
tender process.) During the President's Visit to India, former Minister of
External Affairs, Mr Yashwant Sinha expressed India interests on receiving
assistance in areas of electricity/power generation as well as mining
technology.
Agro-processed products: South African firms wish to share expertise in food
processing with India.
Autos and components: TATA Motors has already established a presence in
South Africa and Mahindra Motors has also expressed interest to commence
exporting vehicles to South Africa.
Services: Engineering and financial services are increasingly attracting
attention.
ICT: India's information and communication technology (ICT) prowess
(software development) has attracted attention and South Africa has begun to
engage relevant firms. Tie-ups and memoranda of understanding have been signed
between the two nations. South Africa views India's technical pool in ICT as
holding promise for future co-operation between the two countries. Co-operation
in space technology offers further opportunities.
Science and Technology: India's technical manpower pool has been noted as
providing impetus for closer co-operation with South Africa, especially in
software development. Other areas of assistance are Biopharma and Biotechnology
as noted by the President during the visit to the Centre for Cellular and
Molecular Biology (CCMB) in Hyderabad in October 2003.
Health: South Africa would like to learn more about the traditional
knowledge system development (institutionalising traditional knowledge in
medicines)
SMME: Co-operation in small, medium and micro enterprise (SMME) development,
jewellery and between the two countries' CSIRs is ongoing.
Enquiries: Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
23 March 2006
Source: SAPA
