19 March 2006
South African President Mr Thabo Mbeki, supported by the Minister of Foreign
Affairs Dr Nkosazana Dlamini Zuma, will pay a state visit to Italy from 21 to
23 March 2006.
The Presidential delegation also includes Minister of Trade and Industry
Mandisi Mpahlwa and Minister of Science and Technology Mosibudi Mangena as well
as a 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 Côte 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 10 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 euro 862 million (ISTAT â 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 R 127
million and R 668 million respectively, ranking 3rd as South Africa's
investment partner.
According to the latest statistics available, investments from Italy to
South Africa amounted to â¬38.5 million (R 302 million) in 2004 and â¬5,2 million
(R 44 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: FIAT Auto
Original investment (Value in Rands): Original amount not known
Investor/Sector: Motor vehicle / components
Company: Magneti Mareli
Original investment (Value in Rands): 60 million
Investor/Sector: Catalytic converters
Company:
Original investment (Value in Rands):
Investor/Sector:
Company: Comau
Original investment (Value in Rands): Amount not known
Investor/Sector: Industrial automation systems for auto manufacturing
sector
Company: Parmalat
Original investment (Value in Rands): 200 million
Investor/Sector: Dairy products
Company: Aeroporti di Roma
Original investment (Value in Rands): 819 million
Investor/Sector: Airport operator
Company: Mario Levi
Original investment (Value in Rands): 140 million
Investor/Sector: Leather processing and car leather seats
Company: Almec
Original investment (Value in Rands): 109 million
Investor/Sector: Aluminium high-pressure Die-casting foundry
Company: Dorper-Leader
Original investment (Value in Rands): 16 million
Investor/Sector: Leather processing
Company: Silmar
Original investment (Value in Rands): 20 million
Investor/Sector: Gold jewellery
Company: Oro Africa
Original investment (Value in Rands): 25 milion
Investor/Sector: Gold jewellery
Company: Silplat
Original investment (Value in Rands): 100 million
Investor/Sector: Platinum jewellery
Company: Capstone
Original investment (Value in Rands): 241 million
Investor/Sector: Menswear clothing
Company: Costantini
Original investment (Value in Rands): 240 million
Investor/Sector: Furniture
Company: Red Graniti / Marlin
Original investment (Value in Rands): Amount unknown
Investor/Sector: Granite quarring
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 ceasefire 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 Euro 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 Côte d'Ivoire.
Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
19 March 2006
Source: SAPA
