India is a Key Trading and Strategic Partner

The Deputy President of the Republic of South Africa, Phumzile Mlambo-Ngcuka says India is a key strategic partner for South Africa. The Deputy President said this while addressing the Business Forum meeting on the first day of her four-day official visit to the sub-continent.

"Our countries are both members of a treaty together with Brazil known as the India-Brazil-South Africa (IBSA) tri-lateral agreement since 2003. Our political and economic relations are sound and are based on mutual respect and concern for each other's development. The strength of our economic relations is illustrated by the South Africa and India Chief Executive Officers' (CEOs) forum that has been in existence for the past two years. The forum aims to smooth working relations and to create conducive business environment between the two countries," said Ms Mlambo-Ngcuka.

The Deputy President noted that at a bi-lateral level, our objective was to strengthen and deepen economic linkages through strong business and governmental co-operation between the two countries. Such good relations, she pointed out could only have true meaning if was co-operation between the two nations.

Total trade between SA and India in 2005 saw a considerable increase from 2004. Exports increased by 100%, while imports increased by 55% making India our 13th largest trading partner, both in terms of exports and imports. The underlying reason for this increase can be attributed to growing awareness in South Africa about opportunities in India, as well as Indian awareness about opportunities in South Africa. India is among the top 10 investing countries in South Africa, with investments estimated to the value of R10 billion.

She also placed emphasis on the importance of India, Brazil and South Africa (IBSA) trilateral agreement. This agreement seeks to define a common economic democracy for all three developing states.

"We share the same vision of democratic and economic freedom for our people and indeed we are all driving programmes that will ensure that our economic growth is shared by all our people," the Deputy President asserted.

With regard to India's investment in South Africa, Ms Mlambo-Ngcuka highlighted the contribution by Indian people to the culture and economy in South Africa as concrete and visible. The new investment in South Africa by companies like Tata, Mittal Steel and Sahara follow in the footsteps of the Indian pioneers. Tata recently chose South Africa over Australia and other competitors.

The Joint Initiative on Priority Skills for South Africa (JIPSA) was given a boost when seven more trainees were incorporated into the training programme that commenced earlier this year. The candidates, all black ladies, joined 15 others in the TATA sponsored training course in various fields from town planning to finance.

"You have been given this opportunity to learn from this experience. We know that you will be good ambassadors for our country and will contribute to the growth of South Africa upon your return. It is an opportunity many others would have liked to have so make the best of it," encouraged the Deputy President.

The Deputy President will be meeting, among others, with various Indian CEOs with specific focus on tourism, metals and mining, information technology (IT) and business processing outsourcing, banking and finance, pharmaceuticals, jewellery, agro processing and South Africa business in India.

Enquiries:

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Issued by: The Presidency
10 September 2006