21 March 2006
Tshwane - South African President and Mrs Thabo Mbeki have arrived in Rome
today 21 March 2006 ahead of a State visit scheduled for Tuesday to Thursday,
21 - 23 March 2006. The Presidential delegation includes Ministers Dr Nkosazana
Dlamini Zuma, Mandisi Mpahlwa, Mosibudi Mangena, Director-General of Foreign
Affairs Dr Ayanda Ntsaluba, Political Advisor Titus Mofolo and Legal Advisor
Adv Mujanku Gumbi as well as a large business delegation.
President Mbeki's visit to Italy comes within the context of South Africa's
priority to strengthen relations with countries of the North with a view to
faster and shared economic growth while consolidating the African agenda and
promoting the agenda of the South. Critical to note is that Italy is also a
member of the G-8 and the European Union.
Issues on the agenda of discussions between President Mbeki and Italian
President Carlo Azeglia Ciampi on Tuesday, 21 March 2006, are expected to
include, among others:
* The status of bilateral political and economic relations between both
countries,
* Peacemaking and conflict resolution in Africa with particular reference to
the situation in the Democratic Republic of Congo, Sudan and other countries in
the Horn of Africa, and Cote d'Ivoire,
* The outcomes of the World Trade Organisation Talks in Hong Kong in December
2005; and
* Other international issues of mutual concern.
President Mbeki is also expected to hold discussions with Prime Minister
Silvio Berlusconi, the Mayor of Rome Walter Veltroni and the leader of the
opposition coalition Romano Prodi.
In addition, President Mbeki is expected to interact with top business
executives during his visit, and lay a wreath at the Tomb of the Unknown
Soldier.
President Mbeki is expected to return to South Africa on Friday, 24 March
2006.
Bilateral Economic Relations
Trade
Italy ranks amongst South Africa's top ten trading partners. South African
exports to Italy are dominated by precious and non-ferrous metals; basic iron
and steel and ferro-alloys; coal; and quarried stone/granite.
Some value added South African products are increasingly penetrating the
Italian market, including processed and preserved fish and fish products;
manufacture of other general purpose machinery; production, processing and
preserving of meat and meat products; preparation and spinning of textile
fibres; fruit and vegetable crops; market gardening; horticulture; tanning and
dressing of leather; pulp, paper and paperboard; basic chemicals.
South African imports from Italy consist mainly of machine tools, auto
vehicles and components thereof, industrial machinery, jewellery and
telecommunications equipment.
In 2004 total trade between South Africa and Italy amounted to â¬3.157
billion (+23% compared to 2003), with the positive trade surplus (for South
Africa) of â¬862 million (ISTAT - Italian Central Institute of Statistics). The
latest figures available until November 2005 show a strong growth in South
African exports, especially in the precious metals sector.
South African exports to Italy are still dominated by precious and
non-ferrous metals and coal. In 2003 the three sectors below accounted for 68%
of South African exports while in 2004 it had risen to 76%. Statistics for
January to November 2005 indicate a further growth in South African exports of
precious and non-ferrous metals.
An export initiative is being undertaken to increase the volume, value and
products spread of South African products in COOP Italia. This is the leading
retail group in Italy with a market share of 17.7%, and imports fish and
agricultural products from South Africa.
Senior Managers and buyers from COOP Italia are expected to visit South
Africa in the coming months to meet producers of identified products, to be
followed by a marketing initiative.
Investment
Italian Investment in South Africa
Prior to 1995, investment flows from Italy to South Africa were negligible
as compared with other major industrialised countries. The situation, however,
changed significantly in 1997 and 1998 when Italian companies invested R127
million and R668 million respectively, ranking third as South Africa's
investment partner.
According to the latest statistics available, investments from Italy to
South Africa amounted to â¬38.5 million (R302 million) in 2004 and â¬5,2 million
(R44 million) in 2003.
An evaluation of the Italian economy led to the identification of the
following sectors for investment promotion purposes:
* Agro-processing
* Textiles and Clothing
* Leather and Footwear
* Furniture
* Automotive
* Tourism
* Jewellery
* ICT
Principal Italian Investors in South Africa:
Company name: FIAT Auto
Original amount in rands: Not known (250 million expansion)
Sector Investor: Motor vehicles/components for export
Company name: Magneti Marelli
Original amount in rand: 60 million
Sector Investor: Catalytic converters
Company name: Comau
Original amount in rands: Unknown
Sector Investor: Industrial automation systems for auto manufacturing
sector
Company name: Parmalat
Original amount in rands: 200 million
Sector Investor: Dairy products
Company name: Aeroporti di Roma
Original amount in rands: 819 million
Sector Investor: Airport operator
Company name: Mario Levi
Original amount in rands: 140 million
Sector Investor: Leather processing and Car leather seats
Company name: Almec
Original amount in rands: 109 million
Sector Investor: Aluminium high-pressure Die-casting foundry
Company name: Dorper-Leader
Original amount in rands: 16 million
Sector Investor: Leather processing
Company name: Silmar
Original amount in rands: 20 million
Sector Investor: Gold jewellery
Company name: Oro Africa
Original amount in rands: 25 million
Sector Investor: Gold jewellery
Company name: Silplat
Original amount in rands: 100 million
Sector Investor: Platinum jewellery
Company name: Capstone
Original amount in rands: 241 million
Sector Investor: Menswear Clothing
Company name: Costantini
Original amount in rands: 240 million
Furniture
Company name: Red Graniti/Marlin
Original amount in rands: unknown
Sector Investor: Granite quarrying
Potential Investors
* Ferrero: two projects
* Hazelnut growing - Itemba project
* Kinder United of the World
* Paggio
* Diamonds, gold and platinum beneficiation partnerships
Italian Support for peace building and conflict resolution
* In Somalia the Italian government continues to support the
Intergovernmental Authority on Development (IGAD). Italy also intends to
contribute to the economic and social revival of the country.
* In Sudan, together with the United Kingdom, the United States and Norway,
Italy has observer status in the peace negotiations being held under the
auspices of IGAD.
* In Ethiopia and Eritrea, Italy has participated in the UNMEE (United
Nations Mission for Ethiopia and Eritrea) force. Italy contributed to the
United Nations Trust Fund which determined the delimitation and demarcation of
the border between the two countries.
* In the Great Lakes region, Italy hosted the mediation efforts by the St.
Egidio community for the repatriation of the Interahamwe (FDLC) from the DRC to
Rwanda. A cease-fire agreement, with an attached time-frame was signed on 1
April 2005.The Italian government believes that the Rwanda government should be
encouraged to give more positive signs that it would support the repatriation
and resettlement of the FDLC. The UNSC has called upon the government of Rwanda
to submit a list of names of those believed to have been responsible for the
genocide in 1994. Italy contributed â¬1.5 million to the World Bank Trust Fund
for the Great Lakes three years ago. It is considering further financial
support for the resettlement of about 10 000 militants with their families, an
estimated 40 000 persons, to the amount of â¬400 000 to 500 000.
* In Burundi, Italy has supported the AU peace mission, whose main task is
to encourage respect for the Arusha Agreements of August 2000.
* In Northern Uganda, Italy has adopted various initiatives in an attempt to
encourage a negotiated solution to the conflict, and views the conflict as a
potential destabilising influence on the entire Great Lakes region.
* In Liberia, Italy participated as moderator in the talks held in Accra
under the auspices of Economic Community of West African States (ECOWAS) which
led to the comprehensive peace agreement of 18 August 2003. Italy has also made
a financial contribution to the maintenance of the peace contingent of ECOWAS
employed in the peace-building process in Cote d'Ivoire.
Enquires:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
Source: SAPA
21 March 2006
