President Thabo Mbeki to Co-chair South Africa – Mozambique Heads of Sate Economic Bilateral Commission

 Pretoria – South African President Thabo Mbeki will today Tuesday 18 September 2007, together with his Mozambican counterpart President Armando Guebuza, co-chair the South Africa-Mozambique Heads of State Economic Bilateral Commission at the Presidential Guesthouse in Pretoria.

President Mbeki will co-chair this session of the Heads of State Economic Bilateral Commission within the context of South Africa’s priority to consolidate bilateral trade and economic relations between South Africa and Mozambique with a view to advancing the African agenda.

Accordingly, South Africa and Mozambique’s economic relationship is the strongest in the Southern Africa region . In 2005 statistics show that 41,4% of Mozambique’s imports emanated from South Africa and about 12,9% of Mozambique exports were destined for the South African market.

Issues on the agenda of discussions of the South Africa – Mozambique Heads of State Economic Bilateral Commission are expected to include, among others:

• The status of bilateral economic and trade relations;
• Border posts and developments since the Mozambican and South African authorities agreed on 3 June 2005 that the main border post between the two countries, at Ressano Garcia, should remain open for 24 hours a day;
• The Greater Limpopo Transfrontier Park (GLTP) / Lubombo Transfrontier Conservation and Resource Area (TFCA);
• The Lubombo Transfrontier Conservation and Resource Area (TFCA);
• The Kosi Bay – Ponta do Ouro Border Post and Transfrontier Conservation Area;
• Fisheries and Integrated Marine and Coastal Management and Development; and
• Agricultural Sector including agricultural financing.

Mozambique remains South Africa’s second largest export market in Southern Africa. Total exports by South Africa to Mozambique by 2006 were valued at R6, 240 billion. South Africa imported goods from Mozambique to the value of R318, 590 million in the same period. The trade balance is currently in favour of South Africa.

The Industrial Development Corporation (IDC) has been utilised by South Africa as the primary catalyst for South African investment in Mozambique. To date, the IDC has approved funding for 10 projects geographically spread throughout Mozambique and is currently considering/investigating 6 additional projects in the country. The spread ranges from mining and mineral beneficiation, agriculture, tourism, chemicals, and forestry, transport infrastructure to energy.

The Mozal Aluminium Smelter (Mozal 1 and II) remains the IDC’s largest investment outside the borders of South Africa. Another major project funded by the IDC is the titanium-bearing mineral sands in southern Mozambique (US$ 600 million). Other major investments of South African origin in Mozambique are:

• Sasol Gas Pipeline Project (US$ 1.4 billion);
• US$50 million investment by SABMiller in beer factories in Maputo and Beira;
• US$63 million by Illovo Sugar in Maragra sugar mill;
• Xinavane (US$ 70 million);
• CDM (US$ 22 million); and
• US$15, 5 million investments by McCormack to construct Matola Plaza outside Maputo. 

Media Programme for South Africa – Mozambique Heads of State Economic Bilateral Commission

Issued by Ronnie Mamoepa on 082 990 4853

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

18 September 2007