Minister Dlamini Zuma to host Kuwaiti Counterpart

Pretoria – South African Foreign Minister Dr Nkosazana Dlamini Zuma will today Tuesday 19 February 2008 hold bilateral political, economic and trade talks with her Kuwaiti counterpart Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohamed Sabah Al-Salem Al-Sabah in Cape Town.

Sheikh Al-Sabah will pay an official visit to South Africa scheduled from Monday – Tuesday 18-19 February 2008.

Minister Dlamini Zuma will host her Kuwaiti counterpart within the context of South Africa’s priority to strengthen bilateral political, economic and trade relations with Kuwait with a view to advancing south-south relations.

Discussions between Minister Dlamini Zuma and her Kuwaiti counterpart are expected to include, among others:

• The status of bilateral political, economic and trade relations between both countries;
• An overview of political developments in the Middle East with specific reference to those in the Gulf Region;
• An overview of political developments in Africa and particularly within the SADC region including a brief on the outcomes of the recently concluded African Union Summit of Heads of State and Government;
• Kuwaiti support for South Africa’s JIPSA programme; and
• Other issues of mutual interest including nuclear non-proliferation.

Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohamed Sabah Al-Salem Al-Sabah will depart from South Africa later today Tuesday 19 February 2008.

Bilateral Economic Relations

Kuwait has become an increasingly important market for South African exports and several Kuwaiti companies have made major multi-million Rand investments in the construction and development of hotels and real estate in South Africa, as well as on the Johannesburg Stock Exchange.

Other than Kuwaiti investment in the Johannesburg Stock Exchange, which is reportedly fairly significant, there are several Kuwaiti investors in South Africa, namely:

Mohamed Abdulmohsin Al-Kharafi & Sons constructed and owns the Pretoria Sheraton Hotel and Towers, the Oubaai Golf Estate outside George and the Lombardy Estate outside Pretoria. It is a franchise holder of TGI Friday’s chain of restaurants in South Africa. The company is also involved in expanded and moulded foam products for thermal insulation, vehicles and upholstery in South      Africa.

International Financial Advisors (IFA), chaired by Mr Jassim Al-Bahar, invested approximately US$500mn in the Zimbali Coastal Resort in KwaZulu-Natal. A further R 1.8bn investment, in a joint venture with Moreland Developers, is underway. This will be spent on residential developments, a five star hotel, golf courses etc. IFA also acquired a 19.25% shareholding in the Boschendal Estate in 2006 to the value of R 136mn. Additional investment is pending in the further development of the estate. IFA Hotels and Resorts Ltd is listed on the Johannesburg Stock Exchange and has a market capitalization of R654mn.  In August 2007, IFA acquired a 50% stake in the Legend Golf and Safari Resort in the Entabeni Game Reserve. The total development cost of the Legend development is expected to reach R3bn.

In 2001, Kuwaiti Auto Parts Import Company, which is owned by Abdulaziz Al-Ghannam & Bros Co WLL, purchased a 76% share in Johannesburg-based Quality Engine Components. It has since acquired the remainder of the shares and expanded operations in South Africa. The new company is known as Kapico South Africa.

Mr Adel Al-Sumait runs Al-Thandiwe Safaris, a hunting lodge in the Limpopo Province, which was established in 2004. High profile visitors from Kuwait and the region visit the establishment.  

Trade and tourism relations between South Africa and Kuwait

Although Kuwait is a strong consumer market, South Africa's exports to the country between the period 2002 and November 2007 indicate fluctuating and relatively low figures. South Africa's exports to Kuwait between January and November 2006 amounted to R 137 538 785, which ranks Kuwait as South Africa's 79th biggest export partner. Between January and November 2007, South Africa exported goods to the value of R 274 134 964 to Kuwait, which equally made Kuwait South Africa's 79th export partner. Imports from Kuwait to South Africa over the same periods similarly reflect a low and fluctuating tendency. Between January and November 2006 South Africa's imports from Kuwait amounted to R 130 467 401 which also ranked Kuwait on the 79th place. However, a drastic weakening as an import partner occurred between January and November 2007 as total imports of just R 5 044 136 ranked Kuwait on the 139th spot. South Africa enjoyed a positive trade balance over Kuwait in both exports and imports over the abovementioned periods.  That is an international ranking trade balance of 57 in 2006 and 35 in 2007.           

Tourism

The number of tourists visiting South Africa from Kuwait has increased from 702 in 2006 to 1,070 in 2007.

Media Programme for Incoming Visit by Kuwaiti Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohamed Sabah Al-Salem Al-Sabah, Tuesday 19 February 2008

Issued by Ronnie Mamoepa on 082 990 4853

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

19 February 2008