Singh
22 September 2006
Pretoria - South African President Thabo Mbeki will host Indian Prime
Minister Dr Manmohan Singh on his first official visit to South Africa,
scheduled from Saturday - Tuesday, 30 September - 3 October 2006.
South Africa and India share a strategic partnership in developing the
agenda of the South and the visit will take place within the context of South
Africa's commitment to consolidate South-South relations for increased market
and trade access. In this regard, President Mbeki and Prime Minister Singh
recently led high-level delegations to the inaugural India-Brazil-South Africa
(IBSA) Summit of Heads of State and Government in Brazil, and the Non-Aligned
Movement (NAM) Summit in Cuba.
Issues on the agenda of discussions between President Mbeki and Prime
Minister Singh at the Union Buildings are expected to include, among
others:
* bilateral political and economic relations between both countries
* consolidation of the outcomes of the IBSA and NAM Summits with a view to
fast-tracking the developmental agenda of the South
* outcomes of the 61st session of the United Nations General Assembly,
including the comprehensive reform of the United Nations
* African developmental issues, peace and security on the Continent
* other issues of international relevance.
Prime Minister Manmohan Singh's visit to South Africa will also give him an
opportunity, together with President Thabo Mbeki, to commemorate the 100th
centenary of the founding of the Satyagraha philosophy by Mahatma Gandhi in
South Africa. Satyagraha is the philosophy of non-violent resistance, most
famously employed by Gandhi in forcing the end of the British Raj and also
against racial injustice in South Africa. The word is rooted in Sanskrit, Hindi
and Gujarati and is underpinned by three principles: Satya (truth), Ahimsa
(refusal to inflict injury on others) and Tapasya (willingness for
self-sacrifice).
While in South Africa, Prime Minister Singh will also visit sites in
KwaZulu-Natal of particular relevance to Mahatma Gandhi, interact with the
members of the South Africa - India Chief Executive Officers' Forum chaired by
Patrice Motsepe and Ratan Tata, and visit Constitution Hill in
Johannesburg.
Prime Minister Singh is expected to depart from South Africa on Tuesday, 3
October 2006.
Economic Relations
Bilateral Trade (R million)
Year: Imports: Exports: Total
2005: 7 030: 7 394: 14 424
2004: 4 547: 3 713: 8 260
2003: 3 126: 3 350: 3 476
2002: 2 943: 4 037: 6 980
Bilateral Trade (R billion)
The main Indian products exported to South Africa are: motor-cars and
vehicles for the transport of goods, rice, medicaments, cotton yarn, finished
leather goods, machinery and instruments, handmade yarn fabrics, spices,
handicrafts and handmade carpets.
Main products imported from South Africa are chemicals, gold, silver, coal
and briquettes, iron and steel, inorganic and organic fertiliser, pulp and
waste paper, and precious and semi-precious stones.
Trade between South Africa and India continues to grow. In 2005, total
bilateral trade approached a level of R14,5 billion, with imports from India at
R7,02 billion and exports to India at R7,5 billion. India currently ranks as
South Africa's 13th most important export market and the 13th most important
import market.
The sheer size of the Indian economy (14th largest manufacturing economy in
the world) gives it an influential position in the global market in which South
Africa has a key interest. Since South Africa and India have similar
developmental challenges, their collective capacity in bargaining and voicing
concerns that affect their economies in international forums is made highly
effective. As a key emerging regional economy, India provides a platform for
the re-integration of the South African economy with that of South Asia.
Opportunities for closer co-operation in the following sectors have been
identified and form part of South Africa's trade development agenda in
India:
* Capital equipment (construction and related infrastructure): South African
(SA) Airports companies made a successful bid for the upgrading of the Mumbai
Airport. (However, there is some controversy around this bid concerning the
tender process.) During the President's Visit to India, former Minister of
External Affairs, Mr Yashwant Singh expressed Indian interests on receiving
assistance in areas of electricity/power generation as well as mining
technology.
* Agro-processed products: SA firms wish to share expertise in food processing
with India.
* Autos and components: Tata Motors has already established a presence in South
Africa and Mahindra Motors has also expressed interest to commence exporting
vehicles to South Africa.
* Services: Engineering and financial services are increasingly attracting
attention.
* Information and Communications Technology (ICT): India's information
communication technology prowess (software development) has attracted attention
and South Africa has begun to engage relevant firms. Tie-ups and memoranda of
understanding have been signed between the two nations. South Africa views
India's technical pool in ICT as holding promise for future co-operation
between the two countries. Co-operation in space technology offers further
opportunities.
* Science and Technology: India's technical manpower pool has been noted as
providing impetus for closer co-operation with South Africa, especially in
software development. Other areas of assistance are Biopharma and Biotechnology
as noted by the President during the visit to the Centre for Cellular and
Molecular Biology (CCMB) in Hyderabad in October 2003.
* Health: South Africa would like to learn more about the traditional knowledge
system development (institutionalising traditional knowledge in
medicines).
* Small, medium and Micro Enterprises (SMME): Co-operation in SMME development,
jewellery and between the two countries Councils for Scientific and Industrial
Research (CSIRs) is ongoing.
Agreements between South Africa and India being presently negotiated:
* Free Trade Framework Agreement/ Preferential Trade Agreement (SACU)
* Memorandum of Understanding (MoU) on Co-operation in the field of
Agriculture
* MoU on Information and Communications Technology
* Agreement on the Promotion of Investment
* MoU between the South African and Indian Foreign Service Institutes.
Investment
Indian investments in South Africa have grown in quantity as well as
diversity. Investors include Tata (vehicles, information technology (IT),
investment in ferro-chrome); Mahindras (utility vehicles); and a number of
pharmaceutical companies, including Ranbaxy, CIPLA, etc. In 2004, Coromandal of
India acquired 2.5% stake in Poskor; the Tata Group had 26% participation in
the Second National Operator in the telecom sector approved by government in
2005. Their ferro-chrome plant in Richards Bay has received the go-ahead and
they are also interested in moving into power generation and mining in due
course. A joint venture (JV) is reported to have been set up between Adlab
Films, India and Pan African Strategic Investments to produce films, bringing
an estimated R 50 million of investment to South Africa. In January 2006,
Apollo Tyres acquired Dunlop SA in a R500 million deal; and Indro Power Supply
announced its plans to list on the JSE and to build a terminal to ship coal and
iron-ore to India and China. In July 2006, Godrej Consumer Products Ltd signed
an agreement to acquire the Rapidol, which had turnover of R 52 million in
2005. Ashok Leyland plans to invest R 50 million in a motor assembly plant in
KwaZulu-Natal. The UB Group of India also has a limited investment in the hotel
business.
South African investments in India are growing. SA Breweries has acquired a
majority interest in Mysore Breweries (US$ 17,5 million); Shoprite has
established an outlet in Mumbai; Durban businessman Mr Vivian Reddy has plans
to invest in a casino project in Haryana, in partnership with former Indian
cricketer Kapil Dev. In February 2006, Airports Company of South Africa (ACSA)
won the contract for upgrading the Mumbai Airport; SASOL is keen to invest in a
coal-to-fuel project in India; and several South African pharmaceutical
companies have signed JV and other agreements with Indian counterparts.
The South Africa - India CEO's Business Forum
* The Indo - South Africa CEOs Business Forum was launched in October 2004
after the State Visit of President Kalam to South Africa. The Forum is aimed at
stimulating trade and investment between both countries.
* The second meeting of the CEOs Forum took place in Mumbai on 2 May 2005
and was chaired by Patrice Motsepe and Rattan Tata. The Forum identified the
following areas of co-ordination:
- mining and minerals
- gems and jewellery
- power generation
- infrastructure development
- information and communication technology
- pharmaceuticals
- HIV and AIDS
- tourism.
* Working groups that are already in place:
- ICT
- Energy
- Infrastructure
- Education and Skills Development
- Mining
- Auto components
- Tourism
- Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and Joint
Initiative for Priority Skills Acquisition (JIPSA)
In November 2005, Public Service and Administration Minister Geraldine
Fraser-Moleketi undertook a visit to India to seek co-operation in promoting
AsgiSA objectives, particularly in the field of skills development. A team
tasked with identifying suitable Indian engineers, teachers and IT experts,
among others, accompanied the Minister. The initiative formed part of a larger
one looking at human resource development needs in South Africa and focussed on
mentoring programmes, training programmes, short-term exchange programmes, and
secondment of experienced Indian civil servants to build management capacity
and transfer skills. In June 2006, this initiative was further enhanced by the
signing of a MoU on Public Services and Administration Matters.
Deputy President Phumzile Mlambo-Ngcuka paid a highly successful visit to
India from 9 - 13 September 2006, where she managed to identify concrete
programmes of action that bear the promise of deliverable outcomes.
Satyagraha Commemoration
2006 marks the centenary of Satyagraha, the philosophy of non-violent
resistance, most famously employed by Mohandas Gandhi in forcing the end to the
British Raj and also against racial injustice in South Africa. The word is
rooted in Sanskrit, Hindi and Gujarati and is underpinned by three principles:
Satya (truth), Ahimsa (refusal to inflict injury on others) and Tapasya
(willingness for self-sacrifice).
It was a passage from the Bible that had first set Gandhi meditating on
non-violence. He had been overwhelmed by Christ's admonition to his followers
to turn the other cheek to their aggressors.
Satya is Sanskrit for "Truth" and Agraha is used to describe an endeavour.
According to Gandhi's notes, it is a "relentless search for truth and a
determination to reach truth". It is a force that works silently and apparently
slowly. The force can never be physical; thus there is no room for violence.
The only force of universal application can, therefore, be that of ahimsa or
love. In other words, it is "soul-force" (Gandhi's term).
Issued by
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
22 September 2006
Source: SAPA
