Economic Bilateral Commission
28 June 2006
South African President Thabo Mbeki will on Thursday, 29 June 2006, depart
for Maputo, Mozambique where he will co-chair the South Africa - Mozambique
Heads of State Economic Bilateral Forum together with his counterpart,
Mozambican President Armando Guebuza scheduled for the same day.
President Mbeki's visit to Mozambique comes within the context of South
Africa's commitment to strengthen relations with countries of the Southern
African Development Community (SADC) region with a view to achieving the
African developmental agenda.
In this regard, the SA-Mozambique Heads of State Economic Bilateral Forum
focuses specifically on consolidating economic bilateral relations between both
countries. South Africa has emerged as the main trading partner for Mozambique
and its main source of foreign direct investment (FDI). The creation of a
transport and development corridor linking the port of Maputo with South
Africa's industrial heartland symbolises the importance of these bilateral
ties.
The Presidential entourage is expected to include Ministers Mandisi Mpahlwa,
Jeff Radebe, Alec Erwin, Martinus van Schalkwyk, Buyi Sonjica and Deputy
Foreign Minister Aziz Pahad.
Issues on the agenda of these discussions between Presidents Mbeki and
Guebuza on Thursday, 29 June 2006, are expected to include, among others:
* Migration, the implementation of visa abolition agreement, hours of
operation of the Lebombo-Ressano-Garcia Port of Entry and the Giriyondo Port of
Entry.
* Tourism and Environment, the Greater Limpopo Transfrontier Park, new
bilateral agreement on Fisheries and Marine and Coastal Management and the
Lubombo Transfrontier and Resources Area.
* Minerals and Energy - the Cahora Bassa project, the northern Mozambique Power
Development Initiatives, the supply of additional electricity to Maputo, the
Pande and Temane Natural Gas Project.
* Transport and Communication.
* Agriculture.
* Finance - the Avoidance of Double Taxation Agreement.
* Trade and Industry - implementation of the Memorandum of Understanding (MoU)
on Economic Co-operation and regional integration.
President Mbeki is expected to conclude his visit to Mozambique ahead of his
visit to Banjul, The Gambia where he will lead a senior government delegation
to the seventh Summit of African Union Heads of State and Government scheduled
from Saturday to Sunday, 1 to 2 July 2006.
Economic Bilateral Relations
South African companies, State Owned Enterprises (SOE) and private
enterprises, large and Small Medium micro Enterprises (SSMEs), have invested in
Mozambique.
Among the large foreign investments in Mozambique to date is Mozal, the
aluminium smelter at US$ 2,3 billion. Mozal is jointly owned by the South
African Industrial Development Co-operation, the Australian mining group BHP
Billiton, and the Japanese Mitsubishi Corporation. The project represents the
IDC's first and biggest venture outside South Africa and has provided huge
benefits to the Mozambican and South African economies.
Other South African investments in Mozambique include:
* The Sasol gas pipeline project
* The South African Breweries investment in beer factories in Maputo and
Beira
* The South African power utility Eskom's investment in Motraco, a consortium
of publicly owned electricity companies that includes Mozambique and
Swaziland
* The investment by banking group ABSA for an 80% stake in the Mozambican
retail bank Banco Austral
* The investment by McCormack developers in Matola Plaza, as part of the Maputo
Development Corridor
* The second cellular licence by Vodacom.
Economic Trade Relations
Year: South African Exports: South African Imports
2005: R6 402 557 000.00: R199 282 000.00
2004: R5 077 739 000.00: R204 845 000.00
2003: R5 676 203 000.00: R280 806 000.00
2002: R6 418 899 000.00: R403 165 000.00
Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
28 Jun 2006
Source: SAPA
