President Mbeki to Co-chair South Africa-Tanzania Heads of State Economic Commission Meeting

Pretoria - South African President Thabo Mbeki will on Wednesday 4 April depart for Dar-es-Salaam, Tanzania where he will together with his Tanzanian counterpart President Jakaya Kikwete co-chair the South Africa - Tanzania Heads of State Economic Commission scheduled for Thursday, 5 April 2007.

President Mbeki will be supported by a senior government delegation consisting of Ministers Mandisi Mpahlwa, Lulama Xingwana, Jeff Radebe, Buyelwa Sonjica, Nosiviwe Mapisa-Nqakula and Deputy Foreign Minister Aziz Pahad.

President Mbeki will co-chair this session of the SA-Tanzania Heads of State Economic Commission within the context of South Africa's commitment to strengthen and consolidate political, economic and trade relations with a view to the consolidation of the African Agenda.

Accordingly, the Presidential Economic Commission allows the Presidents of both countries to preside over the review of progress made with regard to strategic projects between the two countries.

Issues on the agenda of this session of the Heads of State Economic Commission are therefore expected to include, among others:

• Progress with regard to the spatial development initiatives programmes: the Mtwara Development Corridor and the Central Development Corridor;
• The Memorandum of Understanding on Trade and Investment Co-operation;
• Agriculture and food security issues;
• Customs and revenue issues;
• Immigration issues;
• Transport and communication issues; and
• Issues relating to minerals and energy.

President Mbeki is expected to return to South Africa on Friday, 6 April 2007.

Economic Bilateral Relations

Source: the dti - South Africa Trade by Countries

South Africa ranks as one of the top 10 countries investing in Tanzania and accounts for 10% of total investments in Tanzania. More than a 100 South African companies are economically active in Tanzania. The country rates as a premier investment destination with SA business. South African exports to Tanzania are predominantly in the areas of manufacturing, i.e. machinery, mechanical appliances, paper, rubber products, vehicles, iron and steel and services and technology.

The Presidential Economic Commission is the most appropriate instrument to provide the required co-operative framework to manage the development and implementation of bilateral projects as well as the Spatial Development Initiative (SDI) programmes, in particular the Mtwara and Central Development Corridors, which have been identified as regional NEPAD priorities. The Presidential Economic Commission would further serve as an enabling instrument in support of regional NEPAD programmes and in particular, assist in the process of accelerating regional economic integration by way of strengthening the East African Community as a building block to address the challenges posed by poverty and underdevelopment.

Foreign Direct Investment

South Africa was the second largest source of foreign direct investment to Tanzania for the period 1994-2005. During this period, South Africa injected US$543.3 million into the Tanzanian economy.

According to the Tanzanian Investment Centre, as of December 2006, there were 111 South African companies investing in Tanzania since 1990. These include Illovo/Kilombero Sugar Co. Ltd, Unitrans Tanzania Ltd, Vodacom, African Life Assurance, Nampack Tanzania Ltd, Score Supermarket, Engen Petroleum, and Coin Securities.

South African investments in Tanzania span a range of sectors from agriculture, commercial buildings, telecommunications and advertising, financial services, transportation, manufacturing, natural resources, mining and petroleum, and tourism infrastructure and services.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

3 April 2007