T Mbeki to hold meeting with French Prime Minister D de Villepin, 1
Dec

President Mbeki to hold discussions with French Prime Minister
Dominique de Villepin in Pretoria

30 November 2006

Pretoria - South African President Thabo Mbeki is scheduled to hold
political and economic discussions with French Prime Minister Dominique de
Villepin at the Presidential Guesthouse in Pretoria on Friday, 1 December 2006.
Prime Minister de Villepin is expected to arrive in South Africa later today
Thursday, 30 November 2006.

President Mbeki will hold discussions with Prime Minister de Villepin within
the context of South Africa's priority to promote North-South co-operation with
a view to pushing back the frontiers of poverty and underdevelopment.

The meeting between President Mbeki and Prime Minister de Villepin will be
preceded by a working luncheon between Minister of Foreign Affairs Dr Nkosazana
Dlamini Zuma with Prime Minister de Villepin, as part of preparations for the
bilateral meeting between President Mbeki and Prime Minister de Villepin.

Issues on the agenda of discussions between President Mbeki and Prime
Minister de Villepin are expected to include, among others:

* the status of bilateral political and economic relations between both
countries
* issues relating to Africa, in particular on the European Union (EU) and Group
of 8 (G8) programmes relating to the African Union and the New Partnership for
African Development (NEPAD); conflict resolution and peace-building
initiatives
* regional integration
* North-South co-operation including debt relief, the comprehensive reform of
the United Nations (UN) and progress in the Financing for Development
initiative
* the Middle East Peace Process.

While in South Africa Prime Minister de Villepin will deliver an open
address to the University of Witwatersrand and visit Soweto.

Prime Minister de Villepin is expected to depart from South Africa on
Saturday, 2 December 2006.

Bilateral Trade

France ranks amongst South Africa's top ten trading partners. South African
exports to France are dominated by machinery; mineral and base metal products;
vegetable products; chemical and allied industry products; and textile and
textile articles.

South Africa's top five imports from France consist mainly of vehicles,
aircraft (airbus), vessel and associated transport; machinery and mechanical
appliances and electrical equipment; products of chemical or allied industries;
plastics and rubber articles; and optical, photographic and cinematographic
equipment.

From January to June 2006, total trade between South Africa and France
amounted to R12,5 billion, with a trade surplus of R5,8 billion in favour of
France. In 2005, total trade amounted to R 22 billion with a trade surplus of
R13 billion in favour of France. Bilateral trade in 2004 was R24 billion and
R20 billion in 2003.

Development Assistance to South Africa

* French Overseas Development Assistance (ODA) to South Africa from
1995-2005 amounted to R1,6 billion. Sectors that benefited from the ODA
included the Development Bank of Southern Africa (DBSA), Education, South
African Police Service (SAPS), National Treasury and Provincial and Local
Government.

* On 11 September 2006, Deputy Minister Moleketi and the French Deputy
Minister for Co-operation signed the Partnership Framework Document for
France's ODA assistance to South Africa for the period 2006 to 2010, consisting
of a package of more than R3,4 billion, of which 89% will be in loans and 11%
as ODA.

Investment

France and South Africa have an agreement to promote "privileged economic
relations" between the two countries. New French companies in South Africa have
trebled over the past years and there are now 150 plus established French
companies in South Africa.

French investments in South Africa, including direct, portfolio and other
investments, for the period including 31 December 2004, amounted to R4,966
billion. The largest of which was the purchase of Blue Circle by Lafarge SA
worth R1,5 billion in 1998.

Other French Investments in South Africa include: Danone-Clover, Mozal,
Michelin tyres, Essilor, SIIAF, Alcatel, Boutgues Group, RATP Development,
Total, Renault, Peugeot, Thompson CSF, Air Liquide. The French company Bouygues
Travaux Publics, and the French railway and bus company RATP Development are
part of the Bombela consortium that won the bid for the Gautrain.

Institutional and Co-operation Initiatives

* The South Africa-France Forum for Political Dialogue (established in 1997)
convenes on an annual basis. This forum is co-chaired by Director-General of
the Department of Foreign Affairs (DFA) and the Secretary-General of the French
Foreign Ministry. The last meeting took place in June 2005 in Pretoria, while
the next meeting is scheduled for 7 December 2006 in Paris.

* Other institutional mechanisms facilitated through partner departments
include the Joint Committee on Trade and Industry, and the Joint Defence
Committee.

* The Department of Science and Technology is currently negotiating an
agreement with their French counterparts to establish a Science and Technology
Committee.

* The Declaration of Intent on Co-operation on French Language Training
between the Department of Foreign Affairs and the French Embassy was finalised
in July 2005. Progress on this initiative has been very promising and the
programme and discussions are underway to expand the programme to include
elements such as translations, interpretation, advanced French and standards
setting.

* The Picasso Art Exhibition held in February and March 2006 at the Standard
Bank Museum in Johannesburg brought together 70 original Picasso art works to
Africa. Several South African artists also showcased their artwork at the
exhibition.

* Earlier this year, Eskom obtained a generator from Electricite de France
(EDF) following the breakdown of the generator at Koeberg Nuclear Power
Station.

For further information, please contact:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
30 November 2006

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