President Mbeki to hold Discussions with President of Ghana

Pretoria - Ghanaian President and Chairperson of the African Union John Kufuor will on Monday 7 May 2007 attend the Opening session of the 7th Ordinary Session of the Pan-African Parliament at Gallagher Estates, Midrand. President Kufuor is expected to address the Pan African Parliament.

President Kufuor will on Tuesday, 8 May 2007 meet with South African President Thabo Mbeki during which the two Presidents will hold bilateral discussions at the Union Buildings in Pretoria. President Mbeki's discussions with President Kufuor come within the context of South Africa's commitment to strengthen political, economic and trade relations with Ghana.

Discussions between Presidents Mbeki and Kufuor also takes place against the background of the forthcoming African Union Foreign Ministers retreat and Executive Council scheduled for 8-10 May in Durban to discuss and prepare for the African Union Summit of Heads of State and Government in Ghana in July 2007 on the political and economic integration of the Continent.

President Kufuor is expected to depart from South Africa on Wednesday 9 May 2007.

Bilateral Economic Relations

Ghana represents the major export market for South African goods after Nigeria and while total trade volumes are still relatively low in global terms, it is expected that these figures will continue to grow.

In recent years, trade between South Africa and Ghana has grown significantly. In 2003 South African exports to Ghana jumped to R1,61 billion, up R979 million from the previous year (2002). In the same year South African imports from Ghana stood at R52m. South African exports in 2006 amounted to just more than R1 billion.

By 2006 South Africa was Ghana's 14th largest foreign direct investor. There are 58 South African multinational and small scale companies registered in Ghana from 1994 until April 2007.

A South African company, Anglo-Gold, made headlines in April 2004, when it signed a merger deal with Ghanaian Ashanti Goldfields valued at US$1,4 bn. This meant that South African investment in the Ghanaian mining sector accounted for more than 60% of the total Foreign Direct Investment into the sector. Some of the other main South African companies investing in Ghana include MTN, Standard Bank, Gold Fields, SABMiller, Woolworths, Engen, Hytec Engineering, Multichoice, Alliance Media, Steeldale, Stanbic, Shoprite Checkers, Sherwood, Steers and SAA which operates four weekly flights between Johannesburg and Accra.

South African Breweries has acquired the majority shareholding in Accra Breweries Limited (ABL), which is listed on the Ghana Stock Exchange. The Profurn Group (operating as Barnetts) has opened a large network of retail stores in Ghana.

The recent acquisition by MTN of Avria has made MTN the biggest mobile phone operator in Ghana. It is expected that this latest development will serve as a further catalyst for South African investment in Ghana.

South African exports to Ghana: (Rand '000)

2003: R 1,161,799
2004: R 1,243,374
2005: R 1,625,748
2006: R 1,736,876

SA Imports from Ghana:

2003: R 52,499
2004: R 64,342
2005: R 74,902
2006: R 81,731

Media Programme for Meeting between Presidents Mbeki and Kufuor, Tuesday 8 May 2007

Issued by Department of Foreign Affairs

Private Bag X152
Pretoria
0001

6 May 2007