Deputy Minister Pahad to Visit Switzerland

Pretoria – South African Deputy Foreign Minister Aziz Pahad will today Sunday 25 May 2008 depart for Berne, Switzerland where he will co-chair, together with his Swiss counterpart State Secretary Michael Ambuehl the South Africa – Switzerland Joint Working Group Meeting scheduled for Tuesday 27 May 2008.

Deputy Foreign Minister Aziz Pahad will lead the South African government delegation to this session of the South Africa – Switzerland Joint Working Group Meeting within the context of South Africa’s priority to strengthen bilateral political, economic and trade relations with Switzerland with a view to consolidating North-South relations.

Accordingly, the 2008 session of the Joint Working Group will, for the first time, take place under the framework of the Memorandum of Understanding on Strengthening Mutual Cooperation, signed by Minister Nkosazana Dlamini Zuma and her counterpart, the Foreign Minister Michelene Calmy-Rey, on 08 March 2008 in Geneva.

The visit by Deputy Minister Pahad to Switzerland is intended to:

• Consolidate and strengthen the political relationship between South Africa and Switzerland to maximise benefits for South Africa;
• Promote the implementation of the South African/Swiss trilateral co-operation in Africa utilising such frameworks as the Joint Declaration on Intent on Joint Cooperation in Africa, signed during the official visit of President Mbeki to Switzerland on 10 June 2003;
• Broaden and deepen economic relations and especially increased direct investment;
• Strengthen cooperation on science and technology following the signing of an Agreement on scientific and technological cooperation in December 2007;
• Ensure development co-operation between Switzerland and Southern Africa by encouraging the Swiss regional approach; and
• Enrol Switzerland as an important international partner and co-ordinate multilateral co-operation on issues of mutual interests.

Issues on the agenda of discussions of the South Africa – Switzerland Joint Working Group are expected to include, among others:

• The status of bilateral political, economic and trade relations between the two countries;
• Recent developments in the African Union and/or SADC including trilateral co-operation and prospects for continued co-operation
• Issues of multilateral importance including the comprehensive reform of the United Nations, the World Conference Against Racism Review Conference, Climate Change and Food Security; and
• Developments in the Middle East including the Middle East Peace Process.

Deputy Foreign Minister is expected to return to South Africa on Thursday 29 May 2008.

Bilateral Economic Relations

Economic relations between South Africa and Switzerland have registered a steady growth in the past two years, and there are good prospects for 2008. Bilateral trade has expanded well in recent years. The investment climate is also favourable with a growing involvement of Swiss investors in South Africa. Switzerland ranks amongst the top five foreign investors in South Africa. South Africa is the third largest non-European investor in Switzerland after the United States and Japan. 

Swiss owned/managed companies in South Africa

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

South African owned/managed companies in Switzerland

There are several South African companies operating in Switzerland. Those include 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.

Bilateral Trade relations

Provisional trade figures up to October 2007 however indicate that South Africa continues to enjoy a positive trade balance between the two countries. 

Trade turnover between South Africa and Switzerland amounted in 2006 to a total of Rand 15.76 billion (+27.3% compared to 2005), making South Africa the most important trading partner in Africa for exports as well as imports. The value of South African exports to Switzerland increased by 8% compared to 2005 to a total of Rand 11, 66 billion. Exports from Switzerland to South Africa decreased to Rand 4.1 billion in 2006 (-9% compared to 2005).

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

25 May 2008