The next phase for Africa should be industrialisation, by Africa producing value added products. This was said by the Minister of Trade and Industry, Dr Rob Davies, speaking at the South Africa-European Union (SA-EU) business forum in Pretoria today. Davies added that Africa need to locate itself where there is growth. “Industrialisation is where the economic growth is,” said Davies.
He said that South Africa’s exports have shown growing trade deficits, as compared to the 2008 trade level. According to him, there is a growing interest for Africa as an ideal investment destination and the dti is facilitating the investment process providing guidance to potential investors.
Davies added that South Africa need to invest in competitive infrastructures to attract the Foreign Direct Investments.The EU Commissioner of Trade, Mr Karel De Gucht encouraged the continuation of the business forums and engagements between South Africa and the EU. This, according to De Gucht will reinforce the approach of the trading partnership.
"The European Union remains a strong investment destination which still receives the highest share of FDI in the world year on year. South African companies, such as Steinhoff (in the furniture retailing sector) and Aspen (in the pharmaceutical sector) have been active on our market. Also, investing in South Africa is not a quick, fly-by-night operation, but requires long-term sustainable partnerships. This is what many EU companies operating in South Africa are in for. Some of them have massively invested in the social development of the country,” said Commissioner De Gucht.
De Gucht emphasised that Africa’s economic growth depends on empowering the youth with skills that matches business demand. “The EU is concerned about increasing youth employment in Africa, and we are going to work with Africa to address this challenge,” added De Gutcht.
According to De Gucht the EU has partnered with the Industrial Development Corporation (IDC) in various projects that are aligned with the Industrial Policy Action Plan including the Solar project in Upington.
The Chief Executive Officer of Business Unity South Africa, Mr Xolani Qubeka said the EU are one of the oldest trading partner and encouraged South Africa to put more effort on producing value added products.
According Qubeka, South African business community is keen to the continuation of trade relations and strengthening of the bilateral with the EU. Qubeka encouraged partnerships between European Union and South African companies, saying that could help to create jobs.
The SA-EU Business Forum is expected to conclude with the signing of a joint declaration. Minister Rob Davies and EU Commissioner of Trade, Mr Karel De Gucht
Enquiries:
Sidwell Medupe, Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
Follow us on Twitter: @the_dti
