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9 June 2014, Sandton International Convention Centre
Programme Director, Your Excellencies, Hon. Chief Minister of Madhya Predesh, Shivraj Singh Chouhan and your State Minister for Commerce, Industry and Employment, Ms Yashodhara Raje Scindia, the High Commissioner and Consul General of India, other dignitaries, visiting business leaders from India and business leaders from South Africa, ladies and gentlemen.
Firstly allow me from the side of the ANC Progressive Business Forum to extend a warm word of welcome to you Hon. Chief Minister and your delegation to South Africa. We look forward to further expanding our working relationship with your government, a relationship which has already been embarked upon during our trade delegation to your part of the world in November last year.
The Progressive Business Forum has a well-established, warm and growing relationship with the Confederation of Indian Industry, who have been most helpful to us over the last three years that we have in the spirit of our partnership in BRICS been promoting trade and industry between our two countries.
I would also like to acknowledge the specific role played by Kaushlendra Sinha of CII, first from his position at CII Head Office in New Delhi and later from Mumbai. Mr Chief Minister CII is doing a sterling job in building and promoting the business to business relationships between our two regions; and as we deepen our cooperation I am sure we will get better in producing trade and investment outcomes that are mutually beneficial and help us to address poverty and unemployment will still haunts both our countries.
Your visit Chief Minister comes in the year that South Africa celebrates 20 years of democracy; thus a good moment in time to assess the status of trade between us and our longstanding friends, India being such an important one to us.
Democratic South Africa prioritised developing bilateral political and economic relations. Since 1994, it has signed 624 agreements and established 40 bilateral mechanisms - nearly half of the total number of bilateral mechanisms in place - with countries on the continent. However, there have been challenges with the implementation of some of these agreements. South Africa`s export markets have changed considerably over the past 20 years. New markets have emerged, while the share of exports to some traditional markets, such as United Kingdom, Japan and Europe, has declined. India is now South Africa`s fifth-largest export destination, having overtaken both the United Kingdom and Switzerland.
There has been growth in two-way investment between the two countries. Foreign direct investment (FDI) from India includes investments by companies such as:
Although the small share of high-technology exports has fallen in the past decade, the share of pharmaceuticals has seen an increase from negligible levels to 0.2% of total exports. This is largely due to the emergence of South Africa as a generic drug manufacturer. India continues to make key investments in South Africa, there are potential sectors such as business services, software services and banking services which are growing markets India can explore.
Clearly therefore our partnership in BRICS and our bilateral agreements, and our histories that bind us, are starting to deliver dividends.
But, that being said, we must recognise that we have only started to scratch the surface of the potential that exists. It is therefore good that you promote the upcoming Global Investors` Summit later this year in Madhya Pradesh so that it too can create further impetus. We ourselves will assess our participation.
The focus now moves from embarking on trade flow to how can we improve trade flow between the two countries.
Whilst your mission is to promote the investment summit and thus investment into India, I would also like to use this opportunity to encourage Indian enterprises to look seriously into the huge investment potential in South Africa, thus expanding your international investment profile.
Looking at South Africa as an investment destination, whilst the strongest economy in Africa based on a per capita measurement, and whilst still classified as an emerging economy, it has a stable economic environment and ranks in the top half of most indexes; even taking the lead in some cases e.g. it holds the number one spot when it comes to auditing standards.
The South African Government has identified a number of sectors for development
Why South Africa:
So Hon. Chief Minister I conclude by making one last point, and that is that we are duty bound by history to ensure the rapid and sustainable growth of trade and investment between our two nations.
Both our nations have huge poverty and unemployment challenges which need to be overcome. I am of the view that politically we have concluded the need for us to work together; we now need to see that friendship manifest itself in real trade and investment.
A good foundation has been laid; much more needs to be done. And it is at this practical level of businesses finding each other that the economic objectives will be met.
We wish you well on your visit to South Africa and on your Global Investors` Summit later this year.
I thank you.
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