Two of SA’s strategic trading partners are the focus of upcoming state visits

Login

Register

http://www.clubofmozambique.com/

Two of SA’s strategic trading partners are the focus of upcoming state visits

3:55 CAT | 05 Jul 2016

AFP / Indian Prime Minister Narendra Modi gestures as he delivers his Independence Day speech from The Red Fort in New Delhi on Saturday.

Two of SA’s strategic trading partners are the focus of state visits in the next 10 days — an incoming one from India and an outgoing one to France.

The aim was to improve trade and investment relations with SA, Trade and Industry Minister Rob Davies said on Monday.

Addressing a news conference, he said Indian Prime Minister Narendra Modi would begin his visit to SA on Friday and President Jacob Zuma would lead South African government officials and a business delegation on an official state visit to France.

India is now SA’s sixth largest trading partner. In 2015 trade between the two countries totalled almost R95bn. Trade with India represented 4.9% of South African imports and 4.1% of exports.

“SA’s trade statistics show that India’s exports to SA increased from R29bn in 2011 to R54bn in 2015, while SA’s exports to India increased from R24bn in 2011 to R41bn. The trade surplus is in favour of India. Efforts are under way to promote South African exports of especially value added products,” Davies said.

He said in order to address the trade imbalance, the Department of Trade and Industry had undertaken outward missions to India, including the India International Trade Fair (IITF) in November 2015 and the seventh Investment and Trade Initiative (ITI) in February 2016. The following sectors were targeted for promotion: agroprocessing, beneficiated metals and mining technology, automotive components, electrotechnical and logistics.

Davies said Modi was expected to be accompanied by a high-level business delegation. This would be preceded by a meeting of the SA-India CEOs Forum.

“Post our democracy, India’s investment into SA has been in numerous sectors, such as in the mining industry, financial services, pharmaceutical sector and manufacturing. SA has successfully attracted investment from large Indian multinationals such as Tata, Wipro, Cipla and Apollo Tyres, amongst others,” said Davies.

He said companies such as Tata and Cipla had been early movers and had invested in different projects in SA and had a good experience of SA as an investment destination.

“Tata has invested mining, ICT, hospitality, automotive and energy. Cipla has, for example, supported the roll-out of ARVs (antiretroviral therapy) and making medicines more affordable to patients. Improving healthcare is one of government’s key priorities. We welcome Cipla’s expansion and new investment in the value chain of the pharmaceutical sector and look to further investments,” Davies said.

India’s investment in SA has created 10,660 jobs while SA’s investment in India has created 6,981 jobs.

Zuma will lead a delegation on an official state visit to France from July 11-12.

The key objective for the state visit is to promote SA’s exports and attract investment in the following targeted sectors:

• Agro-processing (fresh fruit, beverages and wine) and aqua-culture;

• Automotive and component manufacturing and composites (shipbuilding);

• Aircraft, aeronautics and space crafts, automotive, rail and transport;

• Electro-technical, engineering services and subcontracting

• Shipbuilding (luxury boats, tug boats and boat components); and

• Energy.

Davies said South African imports from France rose to R24.5bn in 2015 from R23.9bn in 2014.

The are currently more than 365 French companies operating in SA employing 36,000 South African employees. There are about 17 South African companies that have 26 branches employing about 10,000 French employees.

SA also has a trade deficit with France that stood at R15.3bn in 2015. France is SA’s fourth biggest trading partner in the EU after Germany, the UK and Italy. France is SA’s 11th import partner and its 27th export partner.

Davies said: “There is potential to increase SA exports of agriculture and agro-processed products into the French market, including some manufactured products such as diesel-powered trucks, wheeled tractors, lead-acid accumulators, vacuum cleaners and pneumatic tyres.”

On July 12, Zuma would lead the South African delegation to the 100th anniversary of the Battle of Delville Wood. This will be for a commemoration of South Africans who fought in the first major battles on the Western front during the Battle of Somme. It will be held in Longueval.

Source: Business Day Live