Minister Dlamini Zuma to hold Discussions with Austrian Foreign Minister

Vienna – South African Foreign Minister Dr Nkosazana Dlamini Zuma who recently concluded her official visit to New Delhi, India will hold bilateral political, economic and trade discussions with her Austrian counterpart Foreign Minister Ursula Plassnik in Vienna, Austria on Friday 11 April 2008.

Minister Dlamini Zuma was in New Delhi, India as part of President Thabo Mbeki’s delegation to the inaugural Africa – India Partnership Forum from Monday – Wednesday 7-9 April 2008.

Minister Dlamini Zuma will hold discussions with Minister Plassnik within the context of South Africa’s priority to consolidate bilateral political, economic and trade relations with Vienna within the broad framework of advancing  North-South relations.

Accordingly, issues on the agenda of discussions between Ministers Dlamini Zuma and Plassnik are expected to include, among others:

• The status of bilateral political, economic and trade relations between South Africa and Austria;
• A briefing by Minister Dlamini Zuma on developments in Africa in general and SADC in particular with specific reference to peacekeeping and conflict resolution.  In this regard, Austria has substantially increased its commitment to the African continent in 2007 and at the EU-Africa Summit in Lisbon a totally new perspective was established through the common strategy for the development of relations between Europe and Africa as equal strategic partners;
• A briefing by Minister Plassnik on developments within the European Union and the region;
• Issues of multilateral interest including the comprehensive reform of the United Nations and its institutions.

While in Austria, Minister Dlamini Zuma will also, from Saturday – Sunday 12-13 April 2008, hold discussions with South African Ambassadors and High Commissioners from Africa and Europe as part of the Department’s annual consultations with Heads of Mission to brief them about political developments in the country, SADC and Africa in general.

Minister Dlamini Zuma will depart from Austria on Sunday 13 April 2008 for New York, United States of America where she will support President Thabo Mbeki during the UN Security Council meeting scheduled for 16 April, in which President Mbeki will chair the meeting of the Security Council under the theme: the Relationship between the UN and regional organisations and the AU in particular” in conflict resolution. South Africa is the current President of the UN Security Council for the month of April.

Bilateral Economic Relations

• South Africa ranks sixth among Austria’s overseas trading partners and is Austria’s major trading partner in Africa.
  
  
• As an EU member state, Austria has ratified the SA-EU Trade Development and Co-operation Agreement (TDCA). This also means that Austria contributes to the EU as a donor, which in turn benefits South Africa.
  
  
• Mondi (the paper arm of Anglo American Plc) has invested US$ 250 million in the Austrian paper and pulp sector, including shares in Austria’s largest private company Patria Paper.
  
  
• Sappi Ltd. owns KNP Leykam (Austria’s leading non-wood paper manufacturer), including its subsidiaries in the province of Styria, the Netherlands and Belgium.
  
  
• Altogether approximately 25 Austrian companies have a direct investment in South Africa that include amongst other the VAE Railway Systems, Voest Alpine Technologies, Agrana, Tridomic, Plasser and Theurer and RHI. A major focus of Austrian potential investors is on the South African automotive industry.

Bilateral Trade

In year 2006 bilateral exchange between Austria and South Africa amounted to Euro 906.4 millions(R 6342 Billion) an increase of 15.9 in comparison to year 2005 (Euro 781.9 millions). South African exports to Austria in 2006 amounted to Euro 348.8 millions an increase of 12.4 % comparing to year 2005. The main imports from Austria include paper and paper board, machinery and electrical equipment, passenger motor vehicles, medical and pharmaceutical products, heavy duty vehicles and music instruments.

Major Imports from Austria in Euro value

Major Exports to Austria in Euro value

Total imports and exports figures from 2003 till 2006

Development cooperation

• The City of Vienna undertook the construction and maintenance of a school centre in the township of Orange Farm near Johannesburg. The City of Vienna is in the process of investigating and expansion of their development assistance activities in South Africa.
  
  
• In September 2007 Deputy Minister of Trade and Industry Dr. Rob Davies led a business delegation to Austria. The focus of the visit was the Country Forum: South Africa where Austrian business was informed of the potential of South Africa as a trading partner and investment destination.
  
  
• This visit was followed by the visit to South Africa of the President of the Austrian Economic Chamber, Dr Christoph Leitl. A Letter of Intent between South Africa and Austria on JIPSA international placement for skills acquisition is being negotiated
  
  
• In October 2007 the Premier of the Eastern Cape Province Premier Balindela visited the Austrian province of Lower Austria in order to re-activate the cooperation agreement between the two provinces. The Governor of Lower Austria proposed a project-specific MoU to be concluded between the two provinces in 2008/09. A combined delegation from the University of Krems and specialists from Lower Austria visited the Eastern Cape in January 2008 to conduct feasibility studies for potential tourism projects and to discuss specific projects to be included in the MoU.   

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

10 April 2008