President Thabo Mbeki to host Tanzanian Counterpart President Jakaya Kikwete

Tshwane - South African President Thabo Mbeki will host his Tanzanian counterpart, President Jakaya Kikwete for bilateral political and economic discussions at the Presidential Guesthouse in Tshwane on Friday, 7 April 2006.

Newly elected President Kikwete will pay a working visit to South Africa as part of his efforts to consolidate relations with countries in the SADC region. In this regard, he will visit South Africa following a visit to Botswana.

Deputy Minister Aziz Pahad said, "The South African government welcomes the visit since Tanzania plays a major role in SADC, East Africa and the African Union. Tanzania is fast becoming one of Africa's success stories."

"Tanzania is also very active in the Great Lakes region and the South African government will fully support their initiatives to get the Paliphutu-FNL to join the process. This visit will also present us with an opportunity to review the challenges in the region and how we can alleviate them to ensure movement towards peace and stability."

"South African relations with Tanzanian are governed through two fora - the Binational Commission headed by Foreign Affairs and consisting of other departments and the most importantly, the Presidential Economic Commission headed by the respective Presidents."

Issues on the agenda of discussions between Presidents Mbeki and Kikwete are expected to include, among others:

• The status of bilateral political and economic relations between both countries including progress made through the establishment of the Presidential Economic Commission in September 2005;
• Developments within the SADC region;
• Developments in the Great Lakes region in which both South Africa and Tanzania play a significant role;
• Other multilateral issues of mutual concern including the comprehensive reform of the United Nations and developments in the World Trade Organisation Talks.

President Kikwete will conclude his visit to South Africa ahead of his visit to Lesotho.

Trade / Investment / economic cooperation

Source: DTI, 2005

South Africa ranks 4th on the list of foreign investors and accounts for 10 percent of the total investment in Tanzania.

One hundred South African companies are economically active in Tanzania, which is rated as a premier investment destination for South African business people. South African exports to Tanzania are predominantly in the spheres of manufacturing, i.e., machinery, mechanical appliances, paper, rubber products, vehicles, iron and steel and services and technology.

South African Companies in Tanzania

Ilovo/Kilombero Sugar
Siemans Ltd
Vodacom (T) Ltd
African Life Assurance
Engen Petroleum
Nampak Tanzania Ltd

The positive progress recorded by the Tanzanian government in promoting Public Private Partnerships (PPPs) to address the development challenges facing Tanzania, furthermore provides myriad opportunities for South African investors to strategically position themselves in the region, by forging mutually beneficial joint venture partnerships with Tanzanian stakeholders.

The Presidential Economic Commission inaugurated in September 2005 provides the necessary co-operative framework to manage the development and implementation of bilateral projects as well as the Spatial Development Initiatives (SDI's) Programme, in particular the Mtwara and Central Development Corridors, which have been identified as regional NEPAD priority programmes. The Presidential Economic Commission would further serve as an enabling instrument in support of regional NEPAD programmes and in particular, assist the process of accelerating regional economic integration by way of strengthening the East African Community (EAC) as a building block to address the challenges posed by poverty and underdevelopment.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Tshwane
0001

5 April 2006