Deputy President Jacob Zuma to Pay Official Visit to Poland and Romania, Monday, 13 - Friday, 17 September 2004

Deputy President Jacob Zuma will pay an official visit to Poland and Romania from Monday, 13 to Friday, 17 September 2004.

Deputy President Zuma will be accompanied by Minister of Science and Technology, Mosibudi Mangena, and Deputy Ministers of Foreign Affairs, Trade and Industry, and Agriculture and Land Affairs - Aziz Pahad, Lindiwe Hendricks and Advocate Dirk du Toit respectively.

In Poland, Deputy President Zuma will have bilateral political and economic discussions with his counterpart, Prime Minister Marek Belka and is expected to pay a courtesy call on President Aleksander Kwasniewski while in Romania, Deputy President Zuma will have discussions with his counterpart, Adrian Nastase and is expected to pay a courtesy call on President Ion Iliescu.

Issues on the agenda will include, among others:

• Bilateral political and economic relations;
• Operationalisation of the African Union and its institutions including the Pan-African Parliament which will be officially inaugurated in its permanent home on 16 September 2004, the Peace and Security Council, the African Court of Justice;
• The implementation of NEPAD as the socio-economic programme of the African Continent;
• Attempts by the African leadership to create the conditions for peace, security and stability on the African continent, viz the situation in Burundi, the Democratic Republic of Congo, Sudan, Ivory Coast, and others;
• Economic and political integration in the European Union following its enlargement;
• The Middle East Peace Process and developments in Iraq following the handover of sovereignty to a transitional Iraqi government;
• The global fight against terrorism; and
• The reform of the global exercise of governance, viz, the United Nations and all its institutions including the Security Council, the International Monetary Fund.

This visit, the first at this high level to both Poland and Romania, intends to send a strong signal that South Africa wants to strengthen mutual political and economic ties with these two countries as well as with the Central European region in general.

Background

Poland (Monday, 13 - Tuesday, 14 September 2004)

Poland is well known for its high levels of expertise in the field of science and technology. South Africa and Poland have signed an Agreement on Co-operation in the field of Science and Technology in November 1999. Although the Agreement has already been implemented and is working well, there is still a large reservoir of knowledge, expertise and goodwill that needs to be tapped into.

Since the Agreement has been signed, regular meetings of the Joint Commission on Science and Technological Co-operation have taken place on an annual basis, alternatively in Pretoria and Warsaw. During such meetings, the Joint Commission compiles executive programmes on a yearly basis and invites new project proposals from scientists in both countries for the following year. In 1999, after the signing of the Agreement, the Polish authorities committed themselves to a large investment in the Southern African Large Telescope, which is now nearing completion in Sutherland in the northern Cape.

Bilateral Economic Relations

South Africa is among the first top 5 African countries doing business with Poland.

Trade with Poland accounts for over US$100 million worth of goods and services. Trade is steadily increasing between the two counties with South Africa enjoying a positive balance of trade.

In Imports Exports Turnover

Million from to Trade

US$ Poland Poland Balance

2001 20 100 79 902 +59 802 100 002
2002 35 162 84 873 +49 711 120 034
2003 35 900 92 700 +56 800 128 600

Main exports to Poland: minerals, ores, machinery, mechanical appliances, fruit and vegetables products, chemical products, base metal, metal products, skins and hides.

Main imports from Poland: fuels and power, metallurgical, electro-engineering, chemical, mineral, energy and food industry products, stone, concrete, plaster asbestos, ceramics.

SA Investments in Poland

Several South African and Polish enterprises are playing an important role in the promotion of the economic relations between the two countries.

South African Breweries (SABMiller) holds the controlling share in the company Kompania Piwowarska (KP), a leading Polish beer brewer. At present SABMilller is taking over another Polish beer company in north east Poland - Bialystok.

MONDI EUROPE, a subsidiary of MONDI SA, owns the largest pulp and paper mill in Europe which is based in Swiecie, Poland. With its Austrian subsidiary Frantschach it now owns 70% of the stake and is listed on the Warsaw Stock Exchange.

STEINHOFF International, a South African furniture manufacturer, has 17 factories in Poland and exports to the whole of Europe.

Polish investment in SA

The GROMADA TOURIST COOPERATIVE, the second largest tourist consortium in Poland, has invested in a medium sized hotel in Cape Town in 1999. GROMADA SA represents the company's second biggest foreign investment after Germany.

Polish companies in South Africa are involved in the production of aircraft, heavy industrial equipment, mine rescue systems, pharmaceuticals and glassware.

PEZETEL, an aviation company manufacturing electric cars, claims it is the world's first totally reliable and maintenance-free electric vehicle, ferrying golfers around the turf.

POLFA, also a producer of pharmaceuticals based in Warsaw, is engaged with another South African pharmaceutical group exchanging a range of products in an attempt to break into each others' market.

Bilateral Agreements

• Exchange of Notes constituting an Agreement for the establishment of Permanent Offices of Interest in both countries (30 October 1990)
• Trade Agreement (18 September 1991)
• Protocol on Establishing Diplomatic Relations (18 December 1991)
• Visa Agreement for holders of diplomatic/official passports (7 February 1992)
• Bilateral Air Transport Agreement (3 September 1993)
• Double Taxation Agreement (5 December 1995)
• Protocol on Consultations between the Department of Foreign Affairs of South Africa and the Foreign Ministry of Poland (19 September 1995)
• Agreement on Industrial, Technological and Commercial Co-operation within the scope of the Military Industries (16 September 1999)
• Agreement on Scientific and Technological Co-operation (1999)

Romania (Wednesday, 15 - Thursday, 16 September 2004)

Romania is currently finalising its entry requirements into the European Union and the establishment of a sound political rapport at this stage could stand South Africa in good stead once Romania enters the EU in 2007/8.

It is currently a non-permanent member of the United Nations Security Council and its support could be solicited for initiatives in that international forum. It is expected that a bilateral Agreement on Science and Technology and a Memorandum of Understanding on the Statute of the Joint Commission for Economical and Technical Co-operation between South Africa and Romania will be signed during the visit.

Similarly, the signing of the Bilateral Agreement on Science and Technology with Romania during the visit will provide the vehicle for co-operation in this important field and allow South Africa to tap into existing Romanian expertise.

Bilateral Economic Co-operation

SA Exports/Imports

SA Exports SA imports Total Bilateral Trade

2001 US$42,48 million US$3,29 million US$45,77 million
2002 US$ 32,19 million US$3,56 million US$35,75 million
2003 US$ 42,1 million US$ 3,4 million US$ 45,5 million

Products Exported (2002):

Mineral products such as ferrous ores, coal (US$18,6 million), products of machine building industry (US$6,76 million), chemical products and plastics (US$3,43 million), foods and beverages (US$1,60 million), base metals and articles (US$0,72 million).

Products Imported

Products of machine building industry, base metals and articles, wooden products and furniture, leather products.

SA Investments in Romania

The Romanian Embassy in Pretoria reports that 24 SA companies are registered with the Romanian Chamber of Commerce and Industry representing a total investment value of US$92 million. SAB operates brewing and associated operations in Bucharest, Pitesti, Buzau, Cluj-Napoca and Timisoara. In June 2004, SABMiller concluded the acquisition of the majority stake, reportedly accounting for 99,5% of the stock of Aurora SA. It is estimated that its market shares will increase to 25% in the coming years. Aurora SA currently has an annual reported production capacity of 680 000 hectolitres and annual sales of over 650 000 hectolitres.

Bilateral Agreements

• Trade Agreement (1990)
• Surcharge Agreement (1991)
• General Co-operation Agreement (1993)
• Double Taxation Agreement (1993)
• Visa Agreement for holders of diplomatic/official passports
• Agreement on Bilateral Co-operation in the Field of Sport (March 2000)
• Memorandum of Understanding on Defence Co-operation (May 2003)
• Protocol of Action in the Field of Sport and Recreation (May 2004)
• Agreement on Co-operation between South Africa and Romania signed in October 1993.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

10 September 2004