Princess from Belgium on economic mission
12 March 2006
South African Deputy President Phumzile Mlambo-Ngcuka has invited Prince
Philippe and Princess Mathilde of Belgium to pay an official visit to South
Africa from Sunday to Friday, 12 - 17 March 2006.
The Prince will lead a high profile Belgian economic mission of CEOs/senior
managers of close to 70 companies, in addition to a large contingent of senior
trade officials and journalists. Belgium is a leading knowledge economy and
commercial power, and is one of South Africa's top trade and investment
partners in Europe.
The Prince's delegation includes Marc Verwilghen Federal Minister of
Economy, Energy, Foreign Trade and Science Policy and Fientjie Moerman
Vice-Minister President of the Flemish Government and Flemish Minister of
Economy, Enterprise, Science, Innovation and Foreign Trade.
The visit by Prince Philippe and Princess Mathilde comes within the context
of the South African Government's heightened emphasis on economic diplomacy in
support of Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
and the drive to average 6% growth, and halve poverty and unemployment, by
2014.
The decision by Belgian business leaders to focus their attention on the
South African market is another sign of the strong confidence internationally
that the South African economy will continue to achieve enormous successes. The
last two Belgian international trade missions have been to China and India.
A major objective of the visit will be to examine opportunities for business
partnerships with Belgium in South Africa and Africa, particularly in the
ports, energy and railway sectors. The Department of Trade and Industry (the
dti) will host a seminar on investment opportunities in South Africa on 14
March 2006, in addition to numerous business to business meetings that are
being arranged.
Prince Philippe will be accompanied by the representatives of five chambers
of commerce/business federations, three export agencies, the Diamond High
Council, and 86 companies; of which 62 are small, medium and micro enterprises
(SMMEs):
* 20 companies offering services in agro/environment/publishing/information
technology (IT) systems
* 33 exporters in various sectors but mainly chemical/textiles/computer
systems
* Five potential investors in biotechnology/water treatment/pharma
pathologies
* Four exporters/investors in industrial equipment/food processing/shunting
locomotives; and
* Six are large companies:
* Three offering services in banking & insurance/sport
events/publishing
* Two exporters of flags/chemicals
* One potential investor in the diamond sector.
Issues on the agenda of discussions between the two governments are expected
to include:
* The state of bilateral political relations;
* Belgian development and economic co-operation programmes to train South
Africans in various skills like ports management, SMME development and diamond
beneficiation;
* The enhancement of trade and investment relations;
* The expansion of co-operation in the Great Lakes Region in particular how
both countries can assist the DRC to prepare for the historic forthcoming
elections;
* Promoting Belgian investment in the diamond beneficiation industry in South
Africa;
* The Kimberley Process Certification Scheme.
While in South Africa, Prince Philippe and Princess Mathilde will also:
* Inaugurate the NRG/Nashuatec Digital Education Centre at the University of
the Western Cape (UWC), in the presence of Archbishop Desmond Tutu. The Centre
has 127 computers, collected from Belgian companies by the non-governmental
organisation (NGO), Close the Gap. The computers have been repaired and
refurbished and will now be used by students of UWC as an essential tool in
their academic work. The Digital Education Centre provides information on
HIV/AIDS, particularly to first-year students of the UWC. Ten young patients
from the Tygerberg Childrenâs' Hospital will travel to UWC for the inauguration
of a second information and communication technology (ICT) project, also
sponsored by Close the Gap, in which computers will be used to assist
chronically ill children to improve their social contact, education and general
communication outside the hospital.
* Open a workshop, chaired by Science and Technology Minister Mosibudi
Mangena and Flemish vice Minister President Fientje Moerman, to celebrate 10
years of science and technology co-operation between South Africa and Flanders
and develop an action plan for future years.
* Visit the South African Marine Transport Academy (SAMTRA) in Simon's Town.
SAMTRA, which is one of the leading marine transport training academies in
Africa, is partly funded by Safmarine, a Belgian registered company. The Prince
and Princess will also visit Lawhill House, a 120-bed triple storey hostel made
of 47 decommissioned sea-freight containers and serving Simon's Town School,
largely sponsored by Safmarine.
* Visit the Rosy Blue Cullinan Diamond Cutting Factory, a Belgian-South
African BEE enterprise that is making an important contribution to the
establishment of a diamond cutting and polishing skills base in South
Africa.
* Witness the signing of several Memorandums of Understanding, including on
Scientific Cooperation between the universities of KwaZulu-Natal, Liége and
Lubumbashi; on Supply Chain Management between the Transport Education Training
Authority (TETA) and Le Pole Transport of Liége, Belgium; and on Maintenance
Management between TETA and Techno-future Industries of Charleroi, Belgium.
* Open an internet café in Tembisa that has been set up as part of a series
of internet cafés to be established in townships across South Africa as part of
a co-operative project between Telkom and Alcatel, using Belgian ISDN
technology. Schoolchildren will be able to use the internet facilities at no
cost.
Prince Philippe is expected to depart from South Africa on Friday, 17 March
2006.
Background Notes
Bilateral economic relations
Important Economic Agreements include:
* 1995 - Convention for the Avoidance of Double Taxation
* 1998 - Agreement for the Reciprocal Protection of Investments
Trade
In recent years, Belgium has remained South Africa's sixth largest trading
partner, and eighth fastest growing export destination. According to South
African trade statistics for 2004, South Africa exports were valued at R7,21
billion and imports from Belgium at R3,83 billion. The main export products
from South Africa to Belgium include rough diamonds, iron, fresh fruit,
bituminous coal, other ores; and manganese dioxide. Value added exports
primarily include automotive components - catalytic converters, as well as
transport containers, road wheels and parts and accessories thereof.
Total exports to Belgium grew by 19.7% over the last year.
South Africa's Trade with Belgium
South Africa exports to Belgium (RM)
H71: Pearls, precious stones, metals coins, etc.
2001: 2.318.1
2002: 3.721.1
2003: 2,902.7
2004: 2,570.3
H72: Iron and steel
2001: 297.9
2002: 299.5
2003: 428.8
2004: 968.2
H08: Edible fruit, nuts, peel of citrus fruit, melons
2001: 464.9
2002: 555.7
2003: 589.5
2004: 612.9
H27: Mineral fuels, oils, distillation products, etc
2001: 542.9
2002: 742.4
2003: 501.8
2004: 531.0
H84: Nuclear reactors, boilers, machinery, etc
2001: 933.4
2002: 1,065.5
2003: 631.9
2004: 401.2
H87: Vehicles other than railway, tramway
2001: 248.3
2002: 409.3
2003: 309.2
2004: 265.7
H29: Organic chemicals
2001: 103.6
2002: 116.2
2003: 99.5
2004: 234.5
H26: Ores, slag and ash
2001: 422.2
2002: 447.4
2003: 343.8
2004: 231.3
H48: Paper & paperboard, articles of pulp, paper and board
2001: 119.5
2002: 219.1
2003: 169.3
2004: 152.1
H28: Inorganic chemicals, precious metal compound, isotopes
2001: 152.0
2002: 234.4
2003: 177.2
2004: 113.8
Total Top 10 Products
2001: 5,602.8
2002: 7,810.6
2003: 6,153.7
2004:6,081.0
South Africa Imports from Belgium (RM)
H84: Nuclear reactors, boilers, machinery, etc
2001: 632.2
2002: 738.6
2003: 726.5
2004: 653.3
H39: Plastic and articles thereof
2001: 367.0
2002: 462.9
2003: 341.9
2004: 456.5
H29: Organic chemicals
2001: 280.1
2002: 375.4
2003: 384.5
2004: 410.5
H71: Pearls, precious stones, metals, coins etc
2001: 86.1
2002: 126.7
2003: 232.8
2004: 232.6
H30: Pharmaceutical products
2001: 245.7
2002: 231.5
2003: 380.1
2004: 204.3
H38: Miscellaneous chemical products
2001: 93.9
2002: 142.0
2003: 146.9
2004: 179.1
H85: Electrical, electronic equipment
2001: 120.8
2002: 151.3
2003: 149.2
2004: 136.5
H27: Mineral fuels, oils, distillation products, etc
2001: 115.9
2002: 173.7
2003: 130.8
2004: 107.3
H28: Inorganic chemicals, precious metal compound
2001: 103.3
2002: 123.7
2003: 91.0
2004: 97.2
H72: Iron and steel
2001: 59.9
2002: 71.0
2003: 76.6
2004: 93.2
Total Top Products
2001: 2,105.0
2002: 2,596.6
2003: 2,660.3
2004: 2,570.5
Source: South African Department of Trade and Industry
Belgium's strategic location, excellent infrastructure network and state of
the art warehousing and logistics facilities make the country an ideal platform
for export into the European market.
South African trading and distribution hubs include the ports of:
* Antwerp
* Ghent
* Zeebrugge.
Foreign Direct Investment from Belgium
Belgian companies are among the top foreign investors in South Africa. Well
known Belgian owned companies in South Africa include (list not
exhaustive):
* Belgotex Floorcoverings - Manufactures quality soft floor coverings for
residential and commercial applications
* Bosal Africa (Pty) Ltd - Leading manufacturer of car exhausts systems
* NCP Alcohol - Leading producer of ethanol
* Rosy Blue - Global leader in the design, manufacture, and distribution of
fine diamonds and jewellery
In May 2005 the Belgian textile company, Sander International, announced
that it would invest â¬25 million to build a sophisticated weaving mill,
finishing operations and production facility at the Coega Industrial
Development Zone (IDZ). This was the first major investment at Coega. An
estimated 550 jobs are likely to be created over the three phase project.
Tourism
Belgium is the 11th largest source of tourists (around 40 000 per year) to
South Africa, outside of Africa (January - September 2005).
Development Co-operation
At the federal level, South Africa is one of Belgium's 18 partner countries
for development co-operation. The current five year programme is concentrated
in three areas: HIV/AIDS, land restitution (Belgium is the only donor active in
this field) and police reform.
In 2004, the Federal Government's programme was worth â¬5.1 million. A new
indicative programme covering 2006 - 2010 is currently under preparation.
Flanders spends around half its development co-operation budget on South
Africa (around â¬5 million/annum) Flanders has committed itself to funding
programmes worth â¬25 million from 2005-2010 in KwaZulu-Natal, the Free State
and Limpopo in the areas of agriculture and food security, SMME development,
youth and HIV/AIDS.
Economic co-operation
South Africa and Belgium have signed Economic Co-operation Agreements in
numerous areas, including: SMMEs, Gemology and Minerals Beneficiation,
Education & Training, and Science & Technology.
The Declaration of Intent on Co-operation in the field of SMME Development
was signed between South Africa and Flanders during the official visit of HE Mr
Thabo Mbeki to Belgium in November 2004. Project proposals with a focus on
capacity building in the SMME sector have been developed by joint implementing
partners and are currently being evaluated in time to be launched during the
visit of His Royal Highness Prince Philippe to South Africa from 12 - 17 March
2006.
The Declaration of Intent on Co-operation in the field of Gemmology and
Minerals Beneficiation, also signed between South Africa and Flanders during
the official visit of HE Mr Thabo Mbeki to Belgium in November 2004, focused
primarily on Training and Research and Development. Partners are currently
being identified for joint research projects, and training initiatives are
already underway, such as the programme offered by the Diamond and Jewellery
Management Institute South Africa being a foundation partner (The Institute
constitutes part of the University of Antwerp Management School). Already, six
South Africans attended an intensive two week training programme in Antwerp in
November 2005.
Other important training initiatives include amongst others:
* APEC-Antwerp/Flanders Port Training Centre, through which over 120 South
Africans have received training in port management;
* The partnerships between the Transport Education Training Authority (TETA)
and Techno-future Industries and Le Pole Transport, jointly funded by Walloon
and KwaZulu-Natal governments, to provide training in maintenance management,
and logistics and supply chain management, respectively.
Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
10 March 2006
Source: SAPA
