Deputy Minister Pahad to host Swiss Counterpart for Discussions

Pretoria - Deputy Foreign Minister Aziz Pahad will co-chair, together with his Swiss counterpart State Secretary Michael Ambuhl, the annual South Africa - Switzerland Working Group meeting in Cape Town on Monday 19 February 2007.

Deputy Minister Pahad will co-chair this session of the South Africa - Switzerland Working Group meeting within the context of South Africa's commitment to fastrack the African developmental agenda through the consolidation of North-South relations.

Issues on the agenda of discussions of this session of the South Africa - Switzerland Working Group meeting are expected to include, among others:

• The status of bilateral political and economic relations between both countries;
• The African Agenda including NEPAD, peace and security in the Great Lakes, Sudan, Côte d'Ivoire, and Somalia and trilateral co-operation;
• Issues of multilateral importance including the comprehensive reform of the United Nations Security Council and South Africa's tenure of the non-permanent seat 2007-2008; and
• Issues of mutual concern including the Middle East Peace Process, Iran and North Korea.

Switzerland decided to grant South Africa special status on the Swiss foreign policy agenda as one of the important areas for Swiss interests outside Europe on 20 May 2004. This re-positioning of Swiss foreign policy offers bilateral, trilateral and multilateral cooperation opportunities not only in Africa, but also in international organisations.

Switzerland is at the forefront of humanitarian assistance and is offering its good offices for conflict resolution and peace building and remains an important centre for technological innovation and new technologies such as bio-research and pharmaceutical production.

ECONOMIC RELATIONS

Swiss Investments in South Africa

Foreign Direct Investments (FDI)

The overall stock of Swiss FDI invested in South Africa amounted at the end of 2004 to a total of 1.393 billion Swiss Francs.

According to the South African Reserve Bank the total of Swiss FDI invested in South Africa accounts for 6.398 billion Rand, making Switzerland the 7th biggest investor in South Africa.

Portfolio Investments

The overall stock of Swiss portfolio investment invested in South Africa amounted at the end of 2004 to a total of R11.126 billion. This makes according to the South African Reserve Bank Switzerland the 5th biggest portfolio investor in South Africa.

Swiss owned/managed companies in South Africa

There are around 150 owned/managed companies in South Africa. Swiss business has demonstrated a positive view of South Africa's Broad Based Black Economic Empowerment policy, eg. the recent Holcim deal which boasted a transactional value of ZAR 6.82 billion.

South African Investments in Switzerland

According to the South African Reserve Bank the total of South African FDI in Switzerland amounts at the end of 2004 to a total of 354 million Rand.

Portfolio Investments

According to the South African Reserve Bank the total of South African portfolio investments in Switzerland amounts at the end of 2004 to a total of R1.361 billion.

South African owned/managed companies in Switzerland

Non concluding list: South African Airways, De Beers Centenary, Compagnie Financière Richemont, Sappi Trenfor Trading, Decillion, Investec, Glencore, Louis Group, Dimension Data, Brait, Tradex Handels- und Beratungs AG, Octane Holding.

Trade: Bilateral trade relations: figures 2005, imports and exports, volume of trade over past 4-5 years

The total trade between South Africa and Switzerland amounted to a total of CHF1.735 billion (5.7 billion ZAR) (+11.2% compared to 2004) in 2005, South Africa is Switzerland's key trade partner in Africa with both exports and imports. The value of Swiss imports from South Africa increased 7.1% compared to 2004 to a total of CHF 1.084 billion (6.32 billion ZAR). exports from Switzerland to South Africa increased to CHF 651 million (3.008 billion ZAR) in 2005 (+17.9% compared to 2004).

Networks

TINSSA

The Swiss export promotion agency, Osec, had the intention to build up a business hub in South Africa, but for budget and structural reasons refrained from the implementation of such a hub in the short term. Instead the Economic and Trade Section of the Swiss Embassy in Pretoria advanced the idea of creating a network bringing together several important partners from the Swiss-South African business community. Thus, in April 2004, the Trade and Investment Network Switzerland - Southern Africa (TINSSA) was launched based on a Memorandum of Understanding between the Embassy of Switzerland and the following partners: Botswana Export Development and Investment Authority (BEDIA), Business Unity South Africa (BUSA), Durban Chamber of Commerce and Industry (DCCI), Industrial Development Cooperation (IDC), Johannesburg Chamber of Commerce and Industry (NAFCOC-JCCI), Swiss Business Council (SBC), Swisscham Southern Africa and Trade and Investment Promotion Agency for the Western Cape (WESGRO).

The basic decision to open a business hub in South Africa has been taken by Osec in the course of 2006. At present, the details of the set-up in terms of manpower and finances are being discussed between Osec and the EDA.

In 2006 the Swiss launched a project called "Business Kickoff" 2010 which was facilitated by Osec- Business Network Switzerland. The objective of the project is to act as a channel for Swiss companies to reach South African companies and discuss joint projects around World Cup 2010.

EFTA-SACU Agreement

On 1 July 2006 Minister of Trade and Industry, Mandisi Mpahlwa and Swiss Federal Councillor, Joseph Deiss signed the EFTA-SACU Free Trade Agreement in Geneva. Further a bilateral agreement on agriculture between South Africa and the EFTA was signed by Minister for Agriculture and Land Affairs Lulu Xingwana.

The agreements have in the meantime been signed by all EFTA and SACU member states. The next step is now the ratification procedure in all the member states.

Swiss Development Cooperation Programmes

The Swiss Development agency shifted their programme to a regional approach in 2004, whilst continuing to include South Africa and using South Africa as a base for their programmes.

The South African National Treasury is complementary of Switzerland's development cooperation. They consider it as very flexible, and has adopted the Swiss evaluation template as an example for evaluating other countries programmes. The Swiss Agency for Development and Cooperation has been supporting a bilateral programme with South Africa.

The Regional Programme Southern Africa 2005-2010: The (RPSA) represents a shift towards regional priorities, aimed at reaching regional cooperation. Three domains of intervention define the activities carried out as part of the regional strategy 2005-2010, that include, good governance, HIV / AIDS and sustainable use of natural resources.

In 2005 Switzerland gave SFr 2.206 billion to development aid. This figure includes the budgets of the Swiss Agency for Development Cooperation, the State Secretariat for Economic Affairs, international peacekeeping missions, direct contributions to United Nations Agencies and aid from cantons and communes.

In May 2003, the Swiss SDC indicated their commitment to finance projects under the Mutual Learning Agreement between the cities of Tshwane and Basel. These projects are mainly concerned with the development of community centres in previously disadvantaged communities and takes place against the background of Local Agenda 21 (a grouping of NGO's in Basel). In late 2004 an Agreement of Cooperation was signed between the Tshwane Metropolis and the Basel Community and several projects are being developed.

POSSIBLE AREAS OF TRILATERAL CO-OPERATION

• The transitional justice in Africa programme is committed to promoting ongoing justice initiatives both in South Africa and elsewhere. Therefore there is an urgent need to examine how the lessons of the South African experience can be gathered, shared and developed with other agents of transition across the African continent. The programme works with African societies in transition at two complementary, mutually supportive levels: collaborative political intervention, and engaged research and analysis that aims to create a balance between justice and reconciliation as well as the role of development and human security in transforming situations ravaged by war. In this instance the focus would be on the Great Lakes region.
  
  
• Minister Calmy Rey and Minister Dlamini Zuma signed a Declaration on Joint Action on the Promotion of Women's Rights during a visit to South Africa in 2004. The Declaration commits the respective parties to promote the well-being of women and the rights of women and to take joint action against violence against women. The focus ill be on gender issues within the overall goal of promoting peace, democracy and the protection and promotion of human rights.
  
  
• Follow up the 2nd Summit of the International Conference on the Great Lakes Region (joint support of SA and Switzerland to the Executive Secretary Ambassador Mulamula.
  
  
• Actions in the field of Transitional justice (DRC, Burundi)
  
  
• Actions against the rape of woman and sexual violence adopted at the 2nd summit ICGLR)
  
  
• Actions in favour of the realisation of property rights (Land and Property Rights in the Great Lakes Region)
  
  
• Actions in the field of disarmament, demobilisation and social reintegration of children in armed conflicts (DRC)
  
  
• Actions in the field of controlling small arms (DRC)
  
  
• Heighten Private companies awareness on the subjects business, human rights, conflicts (training)
  
  
• Initiative or workshop on "transitional justice"

Media Programme for Visit to South Africa by Swiss State Secretary Michael Ambuhl

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

18 February 2007