Media Statement on the Working Visit by the Prime Minister of Canada, 6-8 April 2002

Prime Minister of Canada, Jean Chrétien, will pay a working visit to South Africa, in his capacity as the current Chairperson of the G8 industrialised nations, at the invitation of President Thabo Mbeki. The Prime Minister, accompanied by his wife, Mrs. Aline Chrétien, will arrive in South Africa on Saturday, 6 April and depart on Monday, 8 April 2002.

Prime Minister Chrétien will hold discussions with President Mbeki on the G8's response to the New Partnership for Africa's Development (NEPAD).

In this regard, issues to be addressed at the meeting between President Mbeki and Prime Minister Chrétien include the improvement of access for African products to world markets, the attraction of foreign direct investment and the promotion of investment in key social sectors in Africa, particularly health and education.

President Mbeki will also brief Prime Minister Chrétien of developments relating to the transformation of the OAU to the African Union and NEPAD.

At the G8 Summit held in Genoa, Italy, last year, the industrialised countries welcomed NEPAD as an initiative that would provide the basis for a new and intensive partnership between Africa and the developed world.

In this regard G8 leaders each appointed a personal representative to liaise with Africa on the development of a concrete action plan. This plan often referred to, as the Genoa Plan for Africa, will be presented at the G8 Summit, chaired by Prime Minister Chrétien, in Kananaskis, Canada, from 26 to 28 June 2002.

In preparation for the Kananaskis meeting, Prime Minister Chrétien has invited the Heads of State of Botswana, Malawi, Zambia, Tanzania, Namibia and Mozambique to discuss the progress and implementation of NEPAD so that a co-ordinated G-8 response can be presented to the meeting in June later this year. This meeting will be held in South Africa on Sunday, 7th April 2002 following the political consultations with President Mbeki.

The visit of Prime Minister Chrétien takes place against the background of excellent bilateral relations between South Africa and Canada. A number of South African cabinet ministers and deputy ministers have visited Canada over the past year and have held discussions with their Canadian counterparts on both bilateral, as well as multilateral issues. Significant cooperation also takes place between the two countries on a multilateral level and within international fora.

Since 1994, bilateral trade between South Africa and Canada has grown steadily and is currently approaching the four billion rand per annum mark. Mining is the mainstay of the economic relationship between the two countries. Canada is also active in the field of development cooperation with a technical assistance programme in South Africa aimed at fostering social upliftment, policy development, welfare transformation and training programmes.

Prime Minister Chrétien will be accompanied by the Canadian Minister for International Cooperation, Ms Susan Whelan, the Secretary of State responsible for relations with Africa, Mr Denis Paradis, the Prime Minister's foreign policy advisor, Mr Claude Laverdure and his personal representative for Africa, Ambassador Robert Fowler.

Background

Political

Considerable cooperation has taken place between South Africa and Canada on a multilateral level and within international fora. Canada plays a leading role in a number of areas of interest to South Africa such as the Land Mine Treaty, conflict diamonds, conflict resolution and peace keeping and attempts at curbing the proliferation of small arms. Canada was one of the sponsors of a conference on small arms that was held in South Africa from 18 to 21 March 2002.
Development Cooperation
Canada is active in the field of development cooperation in South Africa. Its technical assistance programme for the period 1999 - 2004 is worth approximately 60 million Canadian dollars (360 million rand) and is aimed at fostering social upliftment, policy development, welfare transformation and training programmes. The Canadians have also made a significant contribution towards good governance and education in the South African Provinces through a twinning programme that links six Canadian provinces to six South African Provinces. Contact and cooperation also exists between nearly all South African Government departments and their Canadian counterparts. Much of this cooperation is dedicated towards the strengthening of capacity.

Trade

Since 1994, bilateral trade between South Africa and Canada has grown steadily and is currently approaching four billion rand per annum. Mining remains the mainstay of the economic relationship between the two countries. This includes not only trade in raw materials, but also in the field of mining equipment, technology and services. Over fifty percent of bilateral trade is closely linked to the mineral sector. Existing business and investment links in the mining sector provide a good base for expanding and strengthening contact between the mining industries of the two countries. Canadian mining companies are also active in exploration world wide, particularly in Africa, and this opens the way to further cooperation with the South African mining sector in the form of joint ventures in third countries. The South African wine and tourism industries have also improved their organizational capacity in Canada, and strong growth is expected in these fields.

Investment

Since 1994 an estimated seven hundred and seventy million Canadian dollars (4,5 billion rand) of foreign direct investment has flowed to South Africa from Canada. A number of Canadian mining houses have invested in South Africa (Placer Dome purchased the Western Areas Mine for example) and are awaiting the passage of the new minerals bill before considering further investment. At present, seventy-eight Canadian companies have investments in South Africa. Mining, agro- processing and information technology appear to present the best opportunities for future investment. A Foreign Investment Protection Agreement has been signed, but is still to be ratified.

For further information contact Ronnie Mamoepa on 082 990 4853.
Issued by the Department of Foreign Affairs
Private Bag X152
Pretoria
0001
5 April 2002