Deputy President Phumzile Mlambo-Ngcuka to depart for India

Pretoria – South African Deputy President Phumzile Mlambo-Ngcuka will today Saturday 9 September 2006 depart for India where she will, at the invitation of Indian Vice President Bhairan Singh Shekhawat, pay an official visit from Saturday – Wednesday 9-13 September 2006.

Deputy President Mlambo-Ngcuka’s visit to India comes within the context of South Africa’s commitment to consolidate South-South relations for increased market and trade access. South Africa and India share a strategic partnership in developing the agenda of the South. Both countries are part of the strategic trilateral forum with Brazil namely IBSA.

Deputy President Mlambo-Ngcuka will also during her visit to India promote the objectives of South Africa’s Accelerated and Shared Growth Initiative (AsgiSA) and Joint Initiative for Priority Skills Acquisition (JIPSA) aimed at ensuring a shared and faster economic growth in SA.

Issues on the agenda of discussions during the Deputy President’s visit are expected to include:
 Co-operation between India and South Africa in terms of skills acquisition and placement by expanding existing opportunities for young South African Trainees and unemployed graduates to gain experience in their specified fields of interest;
 Expand training programmes between India and South Africa, specifically in the fields of engineering, mathematics, science and vocational training ;
 Co-operative projects for small industry development, particularly for the benefit of rural women; and
 SMME development projects, specifically in the fields of Ceramics, Jewellery manufacturing and Textiles.

Deputy President Mlambo-Ngcuka is expected to pay courtesy calls on President Abdul Kalam and Sonia Gandhi. Her programme in New Delhi and Mumbai will include the delivery of the 5th annual Alfred Nzo Memorial lecture, interaction with various Captains of Indian industry, an address to Indian CEOs on “Investment and Skills Transfers”, a presentation on AsgiSA and JIPSA and extensive meetings to further the goals of the latter.

Deputy President Mlambo-Ngcuka is expected to return to South Africa on Thursday 14 September 2006.

Economic relations

Bilateral Trade (R million)

Year 2005 2004 2003 2002
Imports 7 030 4 547 3 126 2 943
Exports 7 394 3 713 3 350 4 037
Total 14 424 8 260 3 476 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): SA Airports companies made a successful bid for the upgrading of the Mumbai Airport. India has, furthermore expressed interests in 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.

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 that have been identified are Biopharma and Biotechnology.

Health: South Africa would like to learn more about the implementation of traditional knowledge system development (institutionalising traditional knowledge in medicines)

SMME: Co-operation in SMME development, jewellery and between the two countries’ CSIRs is ongoing.

Issued by Ronnie Mamoepa on 082 990 4853

℅ Department of Foreign Affairs
Private Bag X152
Pretoria
0001

9 September 2006