Deputy Ministers Pahad and Moleketi Conclude 4 Nation Visit

Madrid - South African Deputy Foreign Minister Aziz Pahad and Deputy Finance Minister Jabu Moleketi will today Wednesday 18 July 2007 conclude their official visit to Spain, the last country in a four nation visit that included Cuba, Panama and Mexico.

Deputy Minister Pahad, and Deputy Minister Moleketi, on Tuesday 17 July 2007 together with his counterpart Secretary of State for Foreign Affairs Bernadino Leon Gross, co-chaired the 4th session of the South Africa - Spain Annual Political Consultations in Madrid

Deputy Minister Pahad also met with African Ambassadors resident in Spain earlier today Wednesday 18 July 2007.

Deputy Minister Moleketi on Tuesday 17 July 2007 held discussions with the Deputy Director General for Commercial Policy on the Mediterranean Alberto Cerdan.

Earlier on Wednesday 18 July 2007 Deputy Minister Moleketi held discussions with his counterpart, Secretary of State David Vegara Figueras responsible for Economic Affairs and Policy Formulation in the office of the Prime Minister, met with the Secretary-General of the United Nations World Tourism Organisation Francesco Frangialli and Spanish captains of industry from tourism, sport and construction.

South Africa - Spain Annual Political Consultations

Deputy Minister Pahad and Secretary of State for Foreign Affairs Leon Gross considered a wide range of issues including bilateral political and economic relations, developments within the European and African Unions and co-operation with as well as an assessment of developments within multilateral fora.

Secretary of State Gross indicated to the delegation that the strong political relations that exist between both countries should be used to strengthen economic relations. Accordingly, Secretary of State Gross briefed the South African delegation that although South Africa remains an impressive investment destination for Spanish business people ways to attract more investment to South Africa and vice versa should be explored.

Despite the increase in two-way trade between South Africa and Spain over the past five years and an increase of 1 473% in Spanish direct investments in South Africa between 2003 and 2005, opportunities to increase trade and investment relations remain plentiful.

South Africa´s exports to Spain in 2006 totalled €1.4 billion (an increase of 7.6%) on the 2005 figure. Spain in South Africa´s 9th most important export market. Spanish exports to South Africa grew by 16.9% in 2006. In the past decade, South Africa's exports to Spain increased by 274% and Spanish exports to South Africa recorded a 300% growth.

Regarding investments, in 2005 South Africa remains the largest recipient of Spanish outward investment in Africa. Other African recipients were Namibia (Euro 51, 55 m), Morocco (Euro 17, 11 m), Cape Verde Islands (Euro 8,47 m) and Algiers (Euro 1,97 m).

In the field of Environmental Affairs and Tourism, both sides considered the following areas of co-operation between both governments: human resource and skills development, investment promotion, projects under the banner of the Ministry of Industry, Tourism and Administration, fisheries, climate change desertification and land degradation and air pollution and waste management.

In the health sector, the South Africa and Spanish governments have agreed to investigate co-operation in the fields of maternal and women's health, child health, training of health professionals including mid-level health workers, support for strengthening of health systems in South Africa and utilisation of regional public health schools in Spain to train professionals from South Africa.

Both delegations also agreed to establish trilateral partnerships in third African countries in which both Spain and South Africa have existing co-operation projects, inter alia, Angola, the Democratic Republic of Congo and Mozambique.

Deputy Minister Pahad briefed the Spanish delegation of his recently concluded visit to Latin America and expressed that the African continent would keenly look to Latin America for experiences in addressing the challenge of poverty and underdevelopment as well as democracy building following decolonisation seeing that Latin America had many more years of such experience compared to Africa's 50 years of decolonisation.

Accordingly, Deputy Minister Pahad briefed Secretary of State Gross on African initiatives of conflict resolution, peacekeeping and post conflict reconstruction and development, inter alia, the Great Lakes region, Western Sahara, Sudan and Darfur, Somalia and Côte dÍvoire. The Spanish government expressed support for South Africa's efforts to support conflict resolution, peacekeeping and post-conflict reconstruction and development in Africa as well as the African position that Africa determine African solutions to African challenges.

Deputy Minister Pahad and Secretary of State Gross also looked at the crisis in the Middle East and Lebanon as well as nuclear non-proliferation in Iran.

On the crisis between Palestine and Israel, both sides reiterated that a just and long lasting peace between the people of Palestine and Israel would only be sustainable when a State of Palestine exists side by side with Israel within secure borders. In the regard, the South Africa and Spanish governments called on the governments of Israel and Palestine to remain focused on achieving this goal. In addition, the South African government called on the international community to drop sanctions against the people of Palestine and to support the Palestinian government.
Both sides would monitor the outcomes of the Quartet meeting to be held on Thursday 19 July 2007.

Regarding Lebanon, both sides expressed support for efforts to restore peace, security and stability to Lebanon and called on the international community to support post-conflict reconstruction and development in Lebanon.

Both delegations also discussed the possibility of trilateral co-operation between South Africa, Spain and third countries with a view to share experiences of democracy building and good governance. One such co-operation project is currently being implemented with Bolivia. The Spanish delegation also expressed a desire to have similar co-operation with the Great Lakes region.

Deputy Minister Pahad also briefed the Spanish delegation of the outcomes of the recently concluded African Union Summit in Accra, Ghana that considered the political and economic integration of Africa under the banner of the "Grand Debate." Deputy Minister Pahad explained that this political and economic integration remains the long term goal of the continent and as a means to achieve this, among others, sub-regional groupings should be strengthened.

Deputy Minister Pahad and Secretary of State Gross also considered the matter of the Africa - European Union Summit that has not been held since 2000. Both sides expressed hope that the Summit would meet under the Portuguese Presidency of the European Union at the end of 2007.

Deputy Minister Pahad and Secretary of State Gross looked at the outcomes of the recently concluded Group of 8 + 5 meeting. Deputy Minister Pahad briefed his counterpart that the +5 Grouping is becoming increasingly relevant as a group that addresses the needs of the developing world within the context of the developed world and how it can assist in this process.

Deputy Minister Pahad also indicated that although recent development reports indicate that Africa has made some progress in addressing its poverty and underdevelopment challenges, the reports also state that poverty levels continue to rise albeit at a slower pace. Both sides agreed that the developed world has a moral responsibility to meet its official development assistance targets of 0.7% of gross domestic product as well as all the other commitments undertaken at the 2005 Gleneagles G-8 Summit. Accordingly Spain reiterated its commitment to meet this target.

Deputy Minister Pahad briefed his Spanish counterpart of the African position on the reform of the United Nations and its institutions. Both sides indicated that they have similar views on the architecture of international organisations and remain committed to the reform of the United Nations and its institutions with particular reference to the Security Council which should be more representative and transparent. In this regard, Deputy Minister Pahad and Secretary of State Gross also reiterated their commitment towards the strengthening of multilateralism.

Both sides also agreed to continue and strengthen co-operation in multilateral fora.

Deputy Minister Moleketi´s Programme

Deputy Minister Moleketi briefed his Spanish hosts of developments in South Africa´s economy including some of our challenges, inter alia, the existence of a first developed economy running parallel to a second underdeveloped economy and the major challenge of upgrading our infrastructure to meet the needs of demands of a rapidly expanding economy.

Deputy Minister Moleketi also briefed the Spanish government on the implementation of the Black Economic Empowerment (BEE) policy in South Africa and addressed the concerns expressed on the unpredictability of the regulatory framework in South Africa. Deputy Minister Moleketi also briefed the Spanish Government of preparations towards the hosting of the 2010 Soccer World Cup.

In addition, Deputy Minister Moleketi briefed the Spanish delegation on the implementation of AsgiSA and JIPSA in South Africa as a means to uplift the economy and address South Africa´s skills development challenges.

The Spanish Secretary of State for Economic Affairs and Policy Formulation provided an overview of the Spanish Economy which has been steadily growing at 3.5% per annum.

Spain has identified four engines of growth in order to sustain this trend. These engines of growth are the exchange into the Euro, the lowering of interest rate, the development of infrastructure that benefits from European Union structural fund, and an increase in immigration which has also stimulated economy growth.

Both sides also discussed developments within the Doha Round of negotiations, and the reform of the World Bank and the International Monetary Fund in order to increase the voice and participation of developing countries especially African ones.

The Spanish delegation indicated it was committed to the reform process and supports the increase of the basis vote of the developing countries.

Many opportunities exist for Spanish companies to invest in South Africa bilaterally and under the umbrella of the Spanish Africa Plan. Projects under the NEPAD banner will also be investigated and opportunities for co-operation explored.

Representatives at the meeting of the confederation of Economic and Commercial Chambers in Spain looked at business opportunities that would be provided by South Africa's hosting of the 2010 FIFA Soccer World Cup.

In addition, some Spanish business federations briefed Deputy Minister Moleketi that they are already participating in business ventures in South Africa, inter alia, Water sanitation, mobile clinics, toll road management and infrastructure projects.

Multilateral co-operation would also be facilitated through the European Union -SADC Economic Partnership Agreement (EPA) to be finalised by the end of 2007.

The South African and Spanish governments have agreed to investigate ways of increasing two way trade in a manner that will effectively address the trade imbalance currently in South Africa's favour. The 2010 FIFA Soccer World Cup being hosted by South Africa also remains an area through which both countries can also explore co-operation projects.

In addition, South Africa has proposed the establishment of a Joint Committee on Trade and Economic Relations that will facilitate the ongoing and regular contract between South Africa and Spain on these afore-mentioned issues.

The South African delegation was briefed that Spain has increased its list of Priority markets from 9 to 11. South Africa expressed a keenness to be considered a candidate country when the policy is reviewed and additional countries added to the list.

Deputy Ministers Pahad and Moleketi will return to South Africa on Thursday 19 July 2007.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

18 July 2007