Minister Dlamini Zuma to lead SA Delegation to the SA-UK Bilateral Forum in London, UK

During the working visit of President Mbeki to London, South African Foreign Minister Dr Nkosazana Dlamini Zuma will simultaneously lead the South African Ministerial delegation to the 7th session of the UK-SA Bilateral Forum scheduled for London on Tuesday - Wednesday, 23-24 May 2006.

The Forum is entitled, "The UK and South Africa: Building together on the 2005 Year of Africa," and will be co-chaired by Minister Dlamini Zuma and the UK's newly appointed Foreign Secretary Margaret Beckett.

The following South African Government Departments will be represented at the Forum:

• Foreign Affairs
• Arts and Culture
• Defence
• Education
• Environmental Affairs and Tourism
• Home Affairs
• Science and Technology
• Trade and Industry

A roundtable discussion on Africa, entitled "Africa 2005: Putting Our Promises into Practice," will focus on achievement of the Millennium Development Goals and ensuring implementation of the commitments made in the report of the Commission for Africa and at Gleneagles in 2005. Discussions will also include the operationalisation of the African Union, the implementation of NEPAD and the promotion of peace and stability in Africa.

Bilateral Economic Relations

The bilateral trade relations between the two countries have shown an upward trend over the years. It reached 27.8 billion pounds sterling in 2004. In addition, there is a healthy flow of investment in both directions. The United Kingdom remains the largest foreign investor in South Africa and over 200 South African companies have established a presence in the UK.

For the first time ever, South Africa is in surplus in terms of its visible trade with the United Kingdom. The United Kingdom is considered and ranked as South Africa's second biggest export trading partner.

The top five export commodities from the United Kingdom to South Africa are: Non-metallic minerals, office machines, road vehicles, telecommunications and sound recording and reproducing apparatus as well as medicinal and pharmaceutical products.

South Africa's top five export commodities to the United Kingdom are non-metallic minerals, coal, coke and briquettes, road vehicles, vegetables and fruit and non-ferrous metals.

The United Kingdom's Trade and Industry Department is actively encouraging direct investment (currently R144 billion) and joint ventures in South Africa. The general aim of this policy is to use South Africa as Regional Hub to export to Africa and Asia.

The SA/UK small business partnership programme was launched in 2000. This programme aims to develop business partnership between the UK and South African companies owned and managed by previously disadvantaged groups. Funds from British Trade International and the EU are supporting the programme.

Over 50% of total South African exports to the United Kingdom are either precious metals or "unclassified goods". With about 12 billion pounds worth of investment in South Africa, Britain holds the greatest amount of total foreign investment stock in South Africa. British companies employ more than 40% of all those employed by foreign firms. Nine of the top twenty foreign companies in SA are British. It has recently emerged that South Africa is the top commonwealth provider of teachers to the UK, with 4700 teachers having left for the UK since 2001.

SOUTH AFRICAN EXPORTS TO THE UNITED KINGDOM (ZAR'000)

The UK is South Africa's 2nd largest export market with an annual growth of 16% between 2004 - 2005.

SOUTH AFRICAN IMPORTS FROM THE UNITED KINGDOM (ZAR'000)

Between 2004 and 2005, South Africa's imports from the United Kingdom declined by -4.7%.

TOURISM

British tourists regard South Africa as a world class tourist destination. The United Kingdom is by far our most significant source of (non-African) tourists, a position it has not relinquished for the past 15 years.

According to SA Tourism, the number of tourists from the United Kingdom, from January to October 2002, amounts to 338, 853.

In 2004, a total of 456,368 British tourists visited South Africa and the latest statistics indicate that the figure for 2005 increased to 469,599.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Tshwane
0001

17 May 2006