of State Economic Bilateral Commission
16 September 2007
South African President Thabo Mbeki will, together with his Mozambican
counterpart President Armando Guebuza, co-chair the South Africa-Mozambique
Heads of State Economic Bilateral Commission at the Presidential Guesthouse in
Pretoria on Tuesday, 18 September 2007.
President Mbeki will co-chair this session of the Heads of State Economic
Bilateral Commission within the context of South Africa's priority to
consolidate bilateral trade and economic relations between South Africa and
Mozambique with a view to advancing the African agenda.
Accordingly, South Africa and Mozambique's economic relationship is the
strongest in the Southern Africa region. In 2005 statistics show that 41,4% of
Mozambique's imports emanated from South Africa and about 12,9% of Mozambique
exports were destined for the South African market.
Issues on the agenda of discussions of the South AfricaâMozambique Heads of
State Economic Bilateral Commission are expected to include, among others:
* the status of bilateral economic and trade relations
* border posts and developments since the Mozambican and South African
authorities agreed on 3 June 2005 that the main border post between the two
countries, at Ressano Garcia, should remain open for 24 hours a day
* the Greater Limpopo Transfrontier Park (GLTP) / Lubombo Transfrontier
Conservation and Resource Area (TFCA)
* the Lubombo Transfrontier Conservation and Resource Area (TFCA)
* the Kosi Bay â Ponta do Ouro Border Post and Transfrontier Conservation
Area
* fisheries and integrated marine and coastal management and development
* agricultural sector, including agricultural financing.
Mozambique remains South Africa's second largest export market in Southern
Africa. Total exports by South Africa to Mozambique by 2006 were valued at
R6,240 billion. South Africa imported goods from Mozambique to the value of
R318,590 million in the same period. The trade balance is currently in favour
of South Africa.
Republic of South Africa - Mozambique trade (R'million):
Year: 1994
Export: 1,771,872
Import: 92,376
Year: 2002
Export: 6,418,899
Import: 403,165
Year: 2003
Export: 5,676,203
Import: 280,806
Year: 2004
Export: 5,077,739
Import: 204,845
Year: 2005
Export: 6,402,000
Import: 199,282
Year: 2006
Export: 6,240,445
Import: 318,590
The Industrial Development Corporation (IDC) has been utilised by South
Africa as the primary catalyst for South African investment in Mozambique. To
date, the IDC has approved funding for 10 projects geographically spread
throughout Mozambique and is currently considering/investigating six additional
projects in the country. The spread ranges from mining and mineral
beneficiation, agriculture, tourism, chemicals, and forestry, transport
infrastructure to energy.
The Mozal Aluminium Smelter (Mozal 1 and II) remains the IDC's largest
investment outside the borders of South Africa. Another major project funded by
the IDC is the titanium-bearing mineral sands in southern Mozambique (US$600
million). Other major investments of South African origin in Mozambique
are:
* Sasol Gas Pipeline Project (US$1,4 billion)
* US$50 million investment by SABMiller in beer factories in Maputo and
Beira
* US$63 million by Illovo Sugar in Maragra sugar mill
* Xinavane (US$70 million)
* CDM (US$22 million)
* US$15,5 million investments by McCormack to construct Matola Plaza outside
Maputo.
Media Programme for South AfricaâMozambique Heads of State Economic
Bilateral Commission
Tuesday, 18 September 2007
10h00: Arrival of media ahead of photo opportunity on commencement of South
Africa â Mozambique Heads of State Economic Bilateral Commission
Venue: Presidential Guesthouse, Bryntirion Estate, Church Street (Gate 9)
10h45: Commencement of South AfricaâMozambique Heads of State Economic
Bilateral Commission
Photo opportunity
11h30: Arrival of media ahead of joint press conference on conclusion of South
AfricaâMozambique Heads of State Economic Bilateral Commission
Venue: Presidential Guesthouse, Bryntirion Estate, Church Street (Gate 9)
12h30: Joint press conference
Please present press cards and RSVP.
Contact:
Manusha Pillai
Tel: 082 389 3587
Issued by: Department of Foreign Affairs
16 September 2007
