President Mbeki to host Indian Prime Minister Dr Manmohan Singh

Pretoria - South African President Thabo Mbeki will host Indian Prime Minister Dr Manmohan Singh on his first official visit to South Africa scheduled from Saturday - Tuesday, 30 September - 3 October 2006.

South Africa and India share a strategic partnership in developing the agenda of the South and the visit will take place within the context of South Africa's commitment to consolidate South-South relations for increased market and trade access.

In this regard, President Mbeki and Prime Minister Singh recently led high level delegations to the inaugural IBSA Summit of Heads of State and Government in Brazil and the Non-Aligned Movement (NAM) Summit in Cuba.

Issues on the agenda of discussions between President Mbeki and Prime Minister Singh at the Union Buildings are expected to include, among others:

• Bilateral political and economic relations between both countries;
• Consolidation of the outcomes of the IBSA and NAM Summits with a view to fast-tracking the developmental agenda of the South;
• Outcomes of the 61st session of the United Nations General Assembly including the comprehensive reform of the United Nations;
• African developmental issues, peace and security on the Continent; and
• Other issues of international relevance.

Prime Minister Manmohan Singh¡'s visit to South Africa will also give him an opportunity, together with President Thabo Mbeki, to commemorate the 100th centenary of the founding of the Satyagraha philosophy by Mahatma Ghandi in South Africa. Satyagraha, is the philosophy of non-violent resistance, most famously employed by Gandhi in forcing the end of the British Raj and also against racial injustice in South Africa. The word is rooted in Sanskrit, Hindi and Gujarati and is underpinned by three principles: Satya (truth), Ahimsa (refusal to inflict injury on others) and Tapasya (willingness for self-sacrifice).

While in South Africa, Prime Minister Singh will also visit sites in Kwazulu Natal of particular relevance to Mahatma Ghandi, interact with the members of the South Africa - India CEOs Forum chaired by Patrice Motsepe and Ratan Tata and visit Constitution Hill in Johannesburg.

Prime Minister Singh is expected to depart from South Africa on Tuesday 3 October 2006.

Economic Relations

Bilateral Trade (R million)

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. (However, there is some controversy around this bid concerning the tender process.) During the President¡'s Visit to India, former Minister of External Affairs, Mr. Yashwant Singh expressed India interests on 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 are Biopharma and Biotechnology as noted by the President during the visit to the Center for Cellular and Molecular Biology (CCMB) in Hyderabad in October 2003.

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

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

Agreements between South Africa and India being presently negotiated:

• Free Trade Framework Agreement/ Preferential Trade Agreement (SACU);
• MoU on Co-operation in the field of Agriculture;
• MoU on Information and Communications Technology;
• Agreement on the Promotion of Investment;
• MoU between the South African and Indian Foreign Service Institutes.

Investment Indian investments in South Africa have grown in quantity as well as diversity. Investors include Tata (vehicles, IT, investment in ferro-chrome); Mahindras (utility vehicles); and a number of pharmaceutical companies, including Ranbaxy, CIPLA, etc. In 2004, Coromandal of India acquired 2.5% stake in Poskor; the Tata Group has 26% participation in the Second National Operator in the telecom sector approved by government in 2005. Their ferro-chrome plant in Richards Bay has received the go-ahead and they are also interested in moving into power generation and mining in due course. A JV is reported to have been set up between Adlab Films, India and Pan African Strategic Investments to produce films, bringing an estimated R 50 million of investment to South Africa. In January 2006, Apollo Tyres acquired Dunlop SA in a R500 million deal; and Indro Power Supply announced its plans to list on the JSE and to build a terminal to ship coal and iron-ore to India and China. In July 2006, Godrej Consumer Products Ltd signed an agreement to acquire the Rapidol, which had turnover of R 52 million in 2005. Ashok Leyland plans to invest R 50 million in a motor assembly plant in KwaZulu-Natal. The UB Group of India also has a limited investment in the hotel business.

South African investments in India are growing. SABreweries has acquired a majority interest in Mysore Breweries (US$ 17.5 million); Shoprite has established an outlet in Mumbai; the Durban businessman Mr Vivian Reddy has plans to invest in a casino project in Haryana in partnership with former Indian cricketer Kapil Dev. In February 2006, ACSA won the contract for upgrading the Mumbai Airport; SASOL is keen to invest in a coal-to-fuel project in India; and several South African pharmaceutical companies have signed JV and other agreements with Indian counterparts.

The South Africa - India CEOs Business Forum

• The Indo- South Africa CEOs Business Forum was launched in October 2004 after the State Visit of President Kalam to South Africa. The Forum is aimed at stimulating trade and investment between both countries.
  
  
• The second meeting of the CEOs Forum took place in Mumbai on 2 May 2005 and was chaired by Patrice Motsepe and Rattan Tata. The Forum identified the following areas of co-ordination:
  
  
• Mining and minerals
• Gems and jewellery
• Power generation
• Infrastructure development
• Information and communication technology
• Pharmaceuticals
• HIV and Aids
• Tourism
• Working groups that are already in place:
  
  
  • ICT
  • Energy
  • Infrastructure
  • Education and Skills Development
  • Mining
  • Auto components
  • Tourism

ASGISA and JIPSA

In November 2005, Public Service and Administration Minister Geraldine Fraser-Moleketi undertook a visit to India to seek co-operation in promoting ASGISA objectives, particularly in the field of skills development. A team tasked with identifying suitable Indian engineers, teachers and IT experts, among others, accompanied the Minister. The initiative formed part of a larger one looking at human resource development needs in South Africa and focussed on mentoring programmes, training programmes, short-term exchange programmes, and secondment of experienced Indian civil servants to build management capacity and transfer skills. In June 2006, this initiative was further enhanced by the signing of a MoU on Public Services and Administration Matters.

Deputy President Phumzile Mlambo-Ngcuka paid a highly successful visit to India from 9 -13 September 2006 where she managed to identify concrete programmes of action that bear the promise of deliverable outcomes.

Satyagraha Commemoration

2006 marks the centenary of Satyagraha, the philosophy of non-violent resistance, most famously employed by Mohandas Gandhi in forcing the end to the British Raj and also against racial injustice in South Africa. The word is rooted in Sanskrit, Hindi and Gujarati and is underpinned by three principles: Satya (truth), Ahimsa (refusal to inflict injury on others) and Tapasya (willingness for self-sacrfice).

It was a passage from the Bible that had first set Gandhi meditating on non-violence. He had been overwhelmed by Christ's admonition to his followers to turn the other cheek to their aggressors.

Satya is Sanskrit for "Truth" and Agraha is used to describe an endeavour. According to Gandhi's notes, it is a "relentless search for truth and a determination to reach truth". It is a force that works silently and apparently slowly. The force can never be physical; thus there is no room for violence. The only force of universal application can, therefore, be that of ahimsa or love. In other words, it is "soul-force" (Gandhi's term).

Media Programme for Official Visit to South Africa by Indian Prime Minister Dr Manmohan Singh, Saturday, 30 September - Tuesday, 3 October 2006

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

21 September 2006