President Mbeki to attend SA-Mozambique Heads of State Bilateral Economic Forum

Pretoria – President Thabo Mbeki will on Friday 11 April 2008 lead a South African delegation to the South Africa-Mozambique Heads of State Bilateral Economic Forum in Mozambique

President Mbeki is undertaking the visit within the context of South Africa’s commitment to strengthen bilateral economic relations with Mozambique and within the broad framework of advancing the consolidation of the African agenda

President Mbeki will be supported by the Minister of Public Works Thoko Didiza; Minister of Public Enterprises Alec Erwin; Minister of Trade and Industry Mandisi Mpahlwa; Minister of Minerals and Energy Buyelwa Sonjica, and other senior government officials.

The Heads of State Bilateral Economic Forum will allow President Mbeki and his Mozambican counterpart President Armando Emilio Guebuza an opportunity to preside over the review of progress made with regard to strategic projects between the two counties.

The Forum further serves as a platform for reinforcing bilateral economic relations between South Africa and Mozambique.

In this regard, the both President Mbeki and President Guebuza are expected to receive reports on:

• Trade and industry issues;
• Tourism and environmental issues;
• Finance issues;
• Minerals and energy issues;
• Transport and communication issues;
• Agricultural issues, and
• Migration issues

Bilateral relations

Relations between South Africa and Mozambique are very close, underpinned by the growing ties in trade, investment, tourism, migration and security.  South Africa has emerged as the main trading partner for Mozambique and its main source of foreign direct investments.  The creation of a transport and development corridor (i.e. Maputo Development Corridor) linking the port of Maputo with South Africa’s industrial heartland symbolises the importance of these bilateral ties.

The extent of economic relations between the two countries warranted the creation of a Heads of State Bilateral Economic Forum in 1997, which is meant to convene on a regular basis (at least twice a year) and preside over strategic projects between the two countries.  Furthermore, a Joint Permanent Commission for Cooperation (JPCC), which was entered into in 1994, serves as a framework of co-operation for all line-function departments between the two countries.

Trade between South Africa and Mozambique

Total exports by South Africa to Mozambique in 2007 (up to November) were valued at over R8 billion.  South Africa imported goods from Mozambique to the value at over R2 billion in the same period.  This showed a dramatic improvement for Mozambican exports to South Africa from R318 590 000 in 2006 to over R 2 billion in 2007; an increase of more than 600 percent.  South Africa’s exports to Mozambique have continued to grow as well moving from just over 6 billion to more than 8 billion; a growth of more than 25 percent. 

Despite South Africa being its main trading partner on the continent, Mozambique only accounts for a very small proportion of South Africa’s external trade.  Trade between the two countries involves traditional exports to South Africa; mostly nickel ores and concentrate, unwrought nickel, and cotton.  South African exports, in turn, consist of petroleum, motor vehicles and variety of consumer goods to meet fast growing demands of an increasing urban population and booming manufacturing sector.

South Africa accounts for about 40% of Mozambican imports.  In 2007, there has been a dramatic increase in South Africa’s imports from Mozambique, which could be partly attributed to the role of South African FDI in Mozambique; with natural gas imports by SASOL playing a significant role.

South Africa – Mozambique trade statistics (all figures in ZAR)

Source: www.thedti.gov.za/econdb/raportt/rap100c1.html

Top 5 traded products between South Africa and Mozambique (2006)

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

10 April 2008