South Africa to sign Energy Agreement with Venezuela

Pretoria – South Africa is expected to sign an Energy Co-operation agreement as well as the Memorandum of Understanding on Energy Co-operation with Venezuela on Tuesday 02 September at the Union Buildings in Pretoria.

Venezuela has one of the largest oil reserves in the world and developing commercial relations in this sector could provide alternative sources of energy to South Africa. 

The two agreements will be signed during the historic first state visit of Venezuelan President Hugo Chavez who is expected to arrive in South Africa later today, Monday 1 September at the invitation of President Thabo Mbeki. The state visit is scheduled for Tuesday-Wednesday 2-3 September.

President Thabo Mbeki will host President Chavez for discussions within the context of South Africa’s priority to consolidate strategic political, economic and trade relations with Venezuela while advancing South-South Relations. As part of these efforts aimed at strengthening strategic relations, a Framework Agreement on Co-operation between South Africa and Venezuela will be signed.

Further discussions between the two countries would focus on opportunities that exist in the areas of energy, mining, trade, armament agriculture and public works.

During the state visit, both President Mbeki and President Chavez will have an opportunity to hold bilateral discussions expected to focus on, among others:

• The status of bilateral political, economic and trade relations between the two countries and indeed between SACU and Mercosaur;
• The strengthening and consolidation of South-South relations through, among others, co-operation in the Non-Aligned Movement (NAM) and the G77 + China fora;
• A briefing on developments in Africa and Latin America and the Caribbean including conflict resolution and peacekeeping in Africa;
• Preparations for the forthcoming inaugural Summit of the African Diaspora which South Africa has been mandated by the African Union to host in October this year;
• The 2nd Africa-South American Community of Nations Summit to be hosted by Venezuela from 24 to 29 November 2008 – this follows that hosted in Addis Ababa in November 2006; and
• Other issues of mutual interest including the comprehensive reform of the United Nations Security Council and the global financial architecture.

Bilateral Economic Relations

Trade statistics

South African Rand in millions (DTI) June 2007:

SA EXPORTS                       

2007                                       2006              2005               2004                           
275,852                                   156,509           107,002           105,216          
           
SA IMPORTS                       

2007                                       2006              2005               2004               
530,085                                   325,200           20,920             29,033            

The major export products were machinery and mechanical appliances, base metals and chemicals.

South Africa has seen a dramatic increase in imports over the same three-year period, mainly covering plastic and rubber imports from Venezuela.

President Chavez is scheduled to return to Venezuela on Wednesday 3 September.

Issued by Ronnie Mamoepa on 082 9904853

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

01 September 2008.