counterpart for discussions
18 February 2007
Pretoria: Foreign Affairs Deputy Minister Aziz Pahad will co-chair, together
with his Swiss counterpart State Secretary Michael Ambuhl, the annual South
Africa�Switzerland Working Group meeting in Cape Town on Monday, 19 February
2007.
Deputy Minister Pahad will co-chair this session of the South
Africa-Switzerland Working Group meeting within the context of South Africa's
commitment to fast track the African developmental agenda through the
consolidation of North-South relations.
Issues on the agenda of discussions of this session of the South
Africa-Switzerland Working Group meeting are expected to include, among
others:
* the status of bilateral political and economic relations between both
countries
* the African Agenda including New Partnership for Africa's Development
(NEPAD), peace and security in the Great Lakes, Sudan, Cote d'Ivoire, and
Somalia and trilateral co-operation
* issues of multilateral importance including the comprehensive reform of the
United Nations Security Council and South Africa's tenure of the non-permanent
seat 2007-2008
* issues of mutual concern including the Middle East Peace Process, Iran and
North Korea.
Switzerland decided to grant South Africa special status on the Swiss
foreign policy agenda as one of the important areas for Swiss interests outside
Europe on 20 May 2004. This re-positioning of Swiss foreign policy offers
bilateral, trilateral and multilateral co-operation opportunities not only in
Africa, but also in international organisations.
Switzerland is at the forefront of humanitarian assistance and is offering
its good offices for conflict resolution and peace building and remains an
important centre for technological innovation and new technologies such as
bio-research and pharmaceutical production.
Economic Relations
Swiss Investments in South Africa
Foreign Direct Investments (FDI)
The overall stock of Swiss FDI invested in South Africa amounted at the end
of 2004 to a total of 1,393 billion Swiss Francs. According to the South
African Reserve Bank the total of Swiss FDI invested in South Africa accounts
for 6,398 billion rand, making Switzerland the 7th biggest investor in South
Africa.
Portfolio Investments
The overall stock of Swiss portfolio investment invested in South Africa
amounted at the end of 2004 to a total of R11,126 billion. This makes,
according to the South African Reserve Bank, Switzerland the 5th biggest
portfolio investor in South Africa.
Swiss owned or managed companies in South Africa
There are around 150 owned or managed companies in South Africa. Swiss
business has demonstrated a positive view of South Africa's Broad Based Black
Economic Empowerment (BBBEE) policy, e.g. the recent Holcim deal which boasted
a transactional value of ZAR 6,82 billion.
South African Investments in Switzerland
According to the South African Reserve Bank the total of South African FDI
in Switzerland amounts at the end of 2004 to a total of 354 million rand.
Portfolio investments
According to the South African Reserve Bank the total of South African
portfolio investments in Switzerland amounts at the end of 2004 to a total of
R1,361 billion.
South African owned or managed companies in Switzerland
Non concluding list: South African Airways, De Beers Centenary, Compagnie
Financiere Richemont, Sappi Trenfor Trading, Decillion, Investec, Glencore,
Louis Group, Dimension Data, Brait, Tradex Handels-und Beratungs AG, Octane
Holding.
Trade: Bilateral trade relations: figures 2005, imports and exports, volume
of trade over past 4-5 years
The total trade between South Africa and Switzerland amounted to a total of
CHF 1,735 billion (5,7 billion ZAR) (+11,2% compared to 2004) in 2005, South
Africa is Switzerland's key trade partner in Africa with both exports and
imports. The value of Swiss imports from South Africa increased 7,1% compared
to 2004 to a total of CHF 1,084 billion (6,32 billion ZAR). Exports from
Switzerland to South Africa increased to CHF 651 million (3,008 billion ZAR) in
2005 (+17,9% compared to 2004).
1999
Exports (CHF mio): 489
Annual change: -14%
Imports (CHF mio): 419
Annual change: -15%
Balance (CHF mio): 70
2000
Exports (CHF mio): 604
Annual change: +23,5%
Imports (CHF mio): 504
Annual change: +20,5%
Balance (CHF mio): 100
2001
Exports (CHF mio): 512
Annual change: -15%
Imports (CHF mio): 637
Annual change: +26%
Balance (CHF mio): -125
2002
Exports (CHF mio): 504
Annual change: -1,4%
Imports (CHF mio): 620
Annual change: 2,6%
Balance(CHF mio): -116
2003
Exports (CHF mio): 523
Annual change: +3,7%
Imports (CHF mio): 862
Annual change: +39%
Balance (CHF mio): -339
2004
Exports (CHF mio): 552
Annual change: +5,6%
Imports (CHF mio): 1012
Annual change: +12,9%
Balance (CHF mio): -460
2005
Exports (CHF mio): 651
Annual change: +17.9%
Imports (CHF mio): 1084
Annual change: +7.1%
Balance (CHF mio): -433
Exports
2002 (% of total)
1. Machines: 25,7
2. Pharmaceutical products: 26,4
3. Chemical products (without pharmaceuticals): 16,9
4. Instruments, watches, etc.: 12,7
Exports
2003 (% of total)
1. Machines: 28,1
2. Pharmaceutical products: 21,3
3. Chemical products (without pharmaceuticals): 22,2
4. Instruments, watches, etc.: 11,3
Exports
2004 (% of total)
1. Machines: 32,7
2. Pharmaceutical products: 17,3
3. Chemical products (without pharmaceuticals): 21,2
4. Instruments, watches, etc.: 8,9
Exports
2005 (% of total)
1. Machines: 28,4
2. Pharmaceutical products: 22,1
3. Chemical products (without pharmaceuticals): 18,5
4. Instruments, watches, etc.: 10,2
Imports
2002
1. Precious metals (platin): 77,3
2. Agricultural products: 14,4
3. Metals: 2,3
Imports
2003
1. Precious metals (platin): 84,6
2. Agricultural products: 9,8
3. Metals: 2,0
Imports
2004
1. Precious metals (platin): 83,9
2. Agricultural products: 9,0
3. Metals: 1,4
Imports
2005
1. Precious metals (platin): 86,4
2. Agricultural products: 7.7
3. Metals: 1,3
Networks
Trade and Investment Network Switzerland � Southern Africa (TINSSA)
The Swiss export promotion agency, Osec, had the intention to build up a
business hub in South Africa, but for budget and structural reasons refrained
from the implementation of such a hub in the short term. Instead the Economic
and Trade Section of the Swiss Embassy in Pretoria advanced the idea of
creating a network bringing together several important partners from the
Swiss-South African business community.
Thus, in April 2004, the Trade and Investment Network Switzerland�Southern
Africa (TINSSA) was launched based on a Memorandum of Understanding (MoU)
between the Embassy of Switzerland and the following partners: Botswana Export
Development and Investment Authority (BEDIA), Business Unity South Africa
(BUSA), Durban Chamber of Commerce and Industry (DCCI), Industrial Development
Corporation (IDC), Johannesburg Chamber of Commerce and Industry (NAFCOC-JCCI),
Swiss Business Council (SBC), Swisscham Southern Africa, and Trade and
Investment Promotion Agency for the Western Cape (WESGRO).
The basic decision to open a business hub in South Africa has been taken by
Osec in the course of 2006. At present, the details of the set-up in terms of
manpower and finances are being discussed between Osec and the Swiss Federal
Department of Foreign Affairs (EDA).
In 2006 the Swiss launched a project called "Business Kickoff" 2010 which
was facilitated by Osec-Business Network Switzerland. The objective of the
project is to act as a channel for Swiss companies to reach South African
companies and discuss joint projects around World Cup 2010.
European Free Trade Area Agreement - Southern African Customs Union
(EFTA-SACU)
On 1 July 2006 Minister of Trade and Industry, Mandisi Mpahlwa and Swiss
Federal Councillor, Joseph Deiss signed the EFTA-SACU Free Trade Agreement in
Geneva. Further a bilateral agreement on agriculture between South Africa and
the EFTA was signed by Minister for Agriculture and Land Affairs Lulu
Xingwana.
The agreements have in the meantime been signed by all EFTA and SACU member
states. The next step is now the ratification procedure in all the member
states.
Swiss Development Co-operation Programmes
The Swiss Development agency shifted their programme to a regional approach
in 2004, whilst continuing to include South Africa and using South Africa as a
base for their programmes. The South African National Treasury is complementary
of Switzerland's development co-operation. They consider it as very flexible
and have adopted the Swiss evaluation template as an example for evaluating
other countries programmes. The Swiss Agency for Development and Co-operation
has been supporting a bilateral programme with South Africa.
The Regional Programme Southern Africa 2005-2010: The (RPSA) represents a
shift towards regional priorities, aimed at reaching regional co-operation.
Three domains of intervention define the activities carried out as part of the
regional strategy 2005-2010, that include, good governance, HIV and AIDS and
sustainable use of natural resources.
In 2005 Switzerland gave SFr 2,206 billion to development aid. This figure
includes the budgets of the Swiss Agency for Development Co-operation, the
State Secretariat for Economic Affairs, international peacekeeping missions,
direct contributions to United Nations Agencies and aid from cantons and
communes.
In May 2003, the Swiss SDC indicated their commitment to finance projects
under the Mutual Learning Agreement between the cities of Tshwane and Basel.
These projects are mainly concerned with the development of community centres
in previously disadvantaged communities and takes place against the background
of Local Agenda 21 [a grouping of non-governmental organisations (NGOs) in
Basel]. In late 2004 an Agreement of Co-operation was signed between the
Tshwane Metropolis and the Basel Community and several projects are being
developed.
Possible areas of trilateral co-operation
* The transitional justice in Africa programme is committed to promoting
ongoing justice initiatives both in South Africa and elsewhere. Therefore there
is an urgent need to examine how the lessons of the South African experience
can be gathered, shared and developed with other agents of transition across
the African continent. The programme works with African societies in transition
at two complementary, mutually supportive levels: collaborative political
intervention, and engaged research and analysis that aims to create a balance
between justice and reconciliation as well as the role of development and human
security in transforming situations ravaged by war. In this instance the focus
would be on the Great Lakes region.
* Minister Calmy Rey and Minister Dlamini Zuma signed a Declaration on Joint
Action on the Promotion of Women's Rights during a visit to South Africa in
2004. The Declaration commits the respective parties to promote the well-being
of women and the rights of women and to take joint action against violence
against women. The focus ill be on gender issues within the overall goal of
promoting peace, democracy and the protection and promotion of human
rights.
* Follow up the 2nd Summit of the International Conference on the Great
Lakes Region (ICGLR) - joint support of SA and Switzerland to the Executive
Secretary Ambassador Mulamula.
* Actions in the field of Transitional justice (DRC, Burundi)
* Actions against the rape of woman and sexual violence adopted at the second
summit ICGLR)
* Actions in favour of the realisation of property rights (Land and Property
Rights in the Great Lakes Region)
* Actions in the field of disarmament, demobilisation and social reintegration
of children in armed conflicts (DRC)
* Actions in the field of controlling small arms (DRC)
* Heighten private companies' awareness on the subjects business, human rights,
and conflicts (training)
* Initiative or workshop on "transitional justice."
Media Programme for visit to South Africa by Swiss State Secretary Michael
Ambuhl
Monday, 19 February 2007
10h30: Arrival of media ahead of photo opportunity on commencement of
discussions between Deputy Minister Aziz Pahad and State Secretary Michael
Ambuhl
Venue: La Vendome Hotel, Seapoint, Cape Town
11h00: Deputy Minister Aziz Pahad and State Secretary Michael Ambuhl to hold
bilateral political and economic discussions
Photo opportunity
16h00: Arrival of media ahead of joint press conference by Deputy Minister
Pahad and State Secretary Ambuhl on conclusion of discussions
Venue: La Vendome Hotel, Seapoint, Cape Town
16h30: Joint press conference
Enquiries:
Manusha Pillai
Cell: 082 389 3587
Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
18 February 2007
