President Thabo Mbeki to host German Chancellor

Pretoria – South African President Thabo Mbeki will host his counterpart German Chancellor Angela Merkel for political, economic and trade relations at the Union Buildings in Pretoria on Friday 5 October 2007.

President Thabo Mbeki will host his counterpart with in the context of South Africa’s commitment to consolidate and strengthen North-South relations with a view to promote the African developmental agenda.

In this regard, Germany is the current chair of the Group of 8 (G-8) and hosted the 2007 Summit in Heiligendamm in June. Germany strongly advocated for the continued support of the G-8 for the African developmental agenda as well as to encourage developed countries to meet its commitments in terms of the G-8 Africa Action Plan.

Germany is also a member of the European Union, with which South Africa has entered into a Strategic Partnership on 14 May 2007 and with which it is currently also engaged in negotiations to finalise the Review of the SA-EU Trade, Development and Cooperation Agreement (TDCA). A meeting between South Africa’s Foreign Minister Dr Nkosazana Dlamini Zuma and the European Union Ministerial Troika will be held in South Africa on 10 October 2007.

Accordingly, issues on the agenda of discussions between President Mbeki and Chancellor Merkel at the Union Buildings on Friday 5 October 2007 are expected to include, among others:

• The status and promotion of bilateral political, economic and trade relations between both countries with particular emphasis on how to address the trade imbalance that is currently in favour of Germany; German support for South Africa’s AsgiSA and JIPSA programmes with the view to further expanding ties and cooperation in skills development;
• German support towards South Africa’s hosting of the 2010 Soccer World Cup;
• Outcomes of the 62nd session of the United Nations General Assembly and the special Summit of the Security Council chaired by the French Presidency on challenges facing the African continent;
• A follow up of the June 2007 Heiligendamm G-8 Summit with a view to evaluating progress on the issue of Climate Change and addressing the challenges facing Africa;
• Conflict Resolution and Post-Conflict Reconstruction with particular reference to:
  • Democratic Republic of Congo;
  • Somalia; and
  • Sudan including the implementation of the Comprehensive Peace Agreement (CPA) and Darfur situation
• A review of political and economic regional developments within the European Union and SADC;
• Multilateral Cooperation including the WTO/Doha negotiations, the comprehensive reform of the United Nations and climate change; and
• Other international issues of mutual concern including nuclear non-proliferation and the Middle East Peace Process.

While in South Africa, Chancellor Merkel will together with President Mbeki, participate in a Business Round Table that will bring together business leaders from South Africa and Germany, visit Soccer City where she will be briefed on preparations towards the hosting of the 2010 Soccer World Cup, attend a Gala Dinner hosted by the German Chamber of Commerce, hold discussions with Cape Town Mayor Helen Zille as well as visit the HOPE HIV and Aids and “Biota Africa” Projects in Cape Town.

Bilateral Economic relations

• South Africa ranks 30th as a source country for Germany’s imports and 22nd as an export destination. Germany is South Africa’s largest import partner and 4th largest export partner after Japan, the United Kingdom and the USA.
• Germany ranks with the UK and the USA among the three largest economic role players in South Africa regarding trade, investment, finance and tourism. Major investments by German companies include BMW, DaimlerChrysler, Volkswagen, Siemens, Bayer and Ferrostaal.
• · Major South African exports to Germany include base metals such as ferro-alloys, primary commodities notably coal, iron ores/metal ash, food products and motor vehicles/parts. Major South African imports from Germany include machinery, motor vehicles/parts, electro-technical products, chemicals and pharmaceuticals.
• During the period December 2005 to December 2006, SA exports to Germany increased by nearly 20% whereas in the same period German exports to SA only rose 7%. In this period the largest category of SA exports consisted of finished products (35%), followed by semi-finished products (27%), outperforming SA exports of raw materials (25%).
• The tourism sector has been a major growth area with approximately 250000 Germans visiting the country annually since 1997, making Germany one of SA’s biggest source markets.
  

 South Africa Trade with Germany 2004 - 2006

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

2 October 2007