The programme director
Honourable Hari Bhartia, President of Confederation of Indian Industry (CII)
President of Federation of Indian Chamber of Commerce and Industry (FICCI)
President of Associated Chambers of Commerce and Industry of India (ASSOCHAM)
Ministers of the Republic of South Africa
Ministers of the Republic of India
His Excellency South African High Commissioner to India
Distinguished guests
Ladies and gentlemen
It gives me great pleasure to participate in this valuable interaction yet again between our respective business delegations.
It is indicative of the relationship between India and South Africa, one based on meaningful engagement, cooperation and mutual understanding.
It is significant that we have been accompanied on this state visit by such a large South African business contingent and that we have dedicated much time to economic matters.
We are grateful in particular to the Indian business organisations and representatives who have been so generous with their time, energy and ideas.
It is quite clear that South African and Indian business see a great future in the economic relationship between our two countries. So do we.
South Africa and India have been tied together economically, politically, culturally and socially for at least the last 150 years.
South Africa is home to a sizable Indian community, which plays a prominent role in the life of our new democratic nation.
We share a history of struggle against colonialism and racial discrimination.
India was at the forefront of the international movement to end apartheid.
Since the advent of democracy in South Africa, these relations have developed across all facets. This is most obvious in the economy.
In the last few years, we have seen a dramatic increase in the participation of major Indian companies in South Africa, with investment stock from India amounting to around six billion United States dollars.
Companies that are household names in India are now becoming commonplace in South Africa.
Prominent South African companies are also making an appearance in the Indian market.
The growing business links between our two countries are supported and reinforced by strong political and diplomatic ties.
It is a matter of significant advantage to our business communities that South Africa and India share a common global vision of peace, stability, social justice and the economic upliftment of the poor and marginalised.
The collaboration of India and South Africa on matters such as United Nations reform, world trade negotiations, climate change and the restructuring of the global financial architecture is equally significant.
Consensus and cooperation on these critical matters provide a durable platform on which to build sound economic relations.
Importantly, India and South Africa view each other as partners, rather than competitors.
Clearly there are areas in which the two countries will compete, such as cricket, but there is far more to be gained from cooperation. Our strengths are complementary.
The opportunities represented by working together far exceed those that we could pursue alone.
It is this understanding that informs, for example, the establishment of the IBSA Dialogue Forum, which brings together India, Brazil and South Africa. It recognises the common challenges that our countries face and appreciates the value of working together to address these challenges.
Collaboration will benefit each of our countries. It will help us each to tackle unemployment, poverty, inequality and under-development. At the same time, it will contribute to our shared vision of a new world order, in which the countries of the South are able to assume their rightful place among the family of nations.
This arrangement has great benefits for the business community in each of our countries.
At the same time, the business community needs to form an integral part of this bilateral and trilateral cooperation.
For it is in the economic sphere, that this relationship is going to be most keenly felt, and in which it is going to have the most lasting impact. We have therefore come to India to deepen all facets of our relationship.
We are here not only to promote trade and investment, but also to lay the foundation for an active exchange of skills, knowledge, technology and resources.
We are here to identify those obstacles that constrain greater trade and investment, so that we may work together to find ways to overcome these obstacles.
Ladies and gentlemen,
We are here to highlight the opportunities that exist on the other side of the Indian Ocean, at the point where it meets the Atlantic Ocean.
As we are fond of saying, South Africa is alive with possibility.
Since the advent of democracy, we have worked hard to stabilise the economy, to achieve and sustain higher levels of growth, and to create new jobs at a faster pace.
We have managed public finances prudently, while at the same time directing resources towards meeting the basic needs of our people.
Our effective economic policies and sound regulatory environment have meant that the country has been able to withstand the worst effects of the global economic crisis.
While employment fell dramatically as a result of the crisis, the economy has returned to positive growth.
Manufacturing output is improving and growth forecasts are promising. Yet what is perhaps most significant is that, despite the economic crisis, the country is undertaking the largest infrastructure investment programme in its history.
That is going to have a profound impact on the competitiveness and capacity of the South African economy.
While it stimulates economic activity in the immediate term, it is laying the basis for substantially greater economic growth into the future.
Ladies and gentlemen,
The potential for economic development extends far north of our borders.
There are around 200 million people in the Southern African region alone and one billion people across Africa.
It is a continent rich in natural resources.
It has also sustained significant levels of average economic growth over the last few years, thanks in part to improved political conditions and sound economic policies. But it needs infrastructure, transport links, energy networks. It needs capital investment, skills, technology and knowledge.
For both India and South Africa, this presents a massive business opportunity. India and South Africa could both make a significant contribution to the establishment of Africa as the next global growth centre.
Ladies and gentlemen,
As you are aware, our visit to India began in Mumbai, where we were privileged to witness the re-launch of the South Africa and India CEOs Forum, an institutional mechanism for closer business interaction.
During the launch, the co-chairs of the forum reiterated their commitment to mutual partnerships and to the role of business in expanding our bilateral relationship.
As governments, we are committed to removing the barriers to trade and investment.
We wish to expedite negotiations on a preferential trade agreement between India and the Southern African Customs Union, so that we may realise the great potential that exists by bringing these two markets closer to each other.
In conclusion, ladies and gentlemen, we hope that our South African and Indian business people will find ample opportunities for cooperation and partnership.
We hope that our visit to India has contributed to increased opportunities to build relationships and strengthen business to business links.
Together, we have a tremendous capacity to advance our economic agenda within international forums, as we work to advance the interests of all developing countries.
We must seize the opportunities that exist for mutual growth and development. In that way, we will ensure that the relationship that has brought us together today will endure and prosper well into the future.
I thank you.
Enquiries:
Vincent Magwenya
Cell: 072 715 0024
Issued by: The Presidency
4 June 2010
