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SMEs
Offer Vast Scope
for
Cooperation
-Deputy
Minister Elizabeth
Thabethe
South Africa and
India share many
common strengths.
Both are emerging
economies and
members of IBSA
comprising India,
Brazil and South
Africa. The fundamentals
of both economies
are very strong.
Both countries
have huge domestic
markets. Highlighting
these commonalities
as a ground for
intensifying further
cooperation between
the two countries,
South Africa's
Deputy Minister
in the Department
of Trade and Industry
Elizabeth Thabethe,
who led a high-powered
business delegation
from her country
to India recently
spoke briefly
to Indo-African
Business on how
to deal with the
impact of the
current global
meltdown and other
issues involving
both the economies.
She also spoke
on the significance
of cooperation
between the small
and medium enterprises
of India and South
Africa. Excerpts.
On the
impact of the
current global
meltdown…
We believe that
if the countries
of IBSA (India-Brazil-South
Africa) and some
other economies
come together,
we will be able
to stand the meltdown.
We want to ensure
South-South cooperation.
There is so much
in common between
India and South
Africa. As we
were discussing
earlier, India
can invest in
South Africa's
energy mix, like
renewable energy.
There are opportunities
that exist. For
us in South Africa,
small business
is one of the
cornerstones and
the backbone of
the economy. In
both countries,
the small businesses
have contributed
more to their
GDP than big businesses.
And India has
got good experience
in this field.
That is what we
want to learn
from India. In
South Africa we
have not yet mastered
that. We are trying
to support the
small business
but we have not
reached that stage
as India. So those
are the areas
that we can strengthen
in our economies
so that we are
able to deal with
the meltdown.
A stimulus package
we signed as a
government is
going to bail
us out. The government
cannot succeed
alone. We need
communities, we
need allies. We
can have partnerships.
Yes, we may have
some retrenchments
in sectors like
the automotive
industry. But
exploiting the
good relations
we have in the
metro cities with
the Indian community,
we can create
jobs. We would
like to emulate
the Indian people.
They have set
a good example
than anybody else.
That issue apart,
India is an amazing
economic power.
Poverty is still
there but India
will deal with
it over time.
In Tamil Nadu
there is Wood
Science Technology
Institute. We
will send our
students to come
and learn here.
On being
the hub and gateway
to African continent
to market the
affordable, accessible
and appropriate
Indian technologies
in Africa …
Yes. I have indicated
that South Africa
is a gateway to
Africa and even
to the South and
some of the American
countries. We
must circle South-South
cooperation. As
of now some of
our products just
go abroad, like
gold and other
minerals. We are
taking these out
to manufacture
not even in the
African continent
but to the UK.
Now, we have passed
a legislation
that these minerals
that we have should
benefit us and
India can come
handy. India has
got specialty
in terms of doing
jewellery. We
want to enter
India so that
we can beneficiate
our products such
as diamonds and
platinum. Platinum
is another mineral
that we have not
yet tapped. We
have got a lot
of these precious
minerals.
On small and medium
enterprises which
create a lot jobs…
We are signing
a state agreement
and a memorandum
of understanding
so that the Indian
business community
or private sector
can come to South
Africa to assist
us to set up those
sectors. Already
an interaction
between India's
NSIC (National
Small Industries
Corporation) and
South Africa's
SEDA (Small Enterprise
Development Agency)
has started. We
have seminars.
We want to do
much more. India
has got good policies,
good programmes
and support from
the government
in terms of agencies
and institutions.
India is number
one in entrepreneurial
spirit. Indian
people are hard
working. South
Africa as a developing
country will spend
much more so that
our people can
be more entrepreneurial.
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‘Indian
Private Sector
Key to
Stepping Up Trade
with S. Africa’
Trade between
South Africa and
India is projected
to reach US $12
bn by 2012 and
the Government
of South Africa
is seeking cooperation
with the Indian
private sector
to achieve this
target, said H
E Ms Elizabeth
Thabethe, Deputy
Minister - Trade
& Industry,
Government of
South Africa.
She was speaking
at an exclusive
interaction and
investors' conference
on South Africa:
Trade & Investment
Opportunities,
organized by Confederation
of Indian Industry
(CII) in association
with the Department
of Trade and Industry,
South Africa,
in Mumbai recently.
While highlighting
that the bilateral
trade between
both countries
had risen exponentially
from a negligible
$45 million in
1993 to $6bn in
2007-08, Ms Thabethe,
remarked that
various initiatives
including establishment
of the India-South
Africa Joint Ministerial
Commission; India/South
Africa CEO's forum;
various agreements
including a General
Trade Agreement,
Cooperation on
defense issues,
SME development
and capacity building
through the India
Technical Cooperation
Programme had
already been implemented.
The Deputy Minister
added that the
bilateral relationship
that South Africa
and India enjoyed
had developed
to such an extent
that both sides
were in the process
of negotiating
a Preferential
Trade Agreement
which would further
advance the trade
flows between
both sides.
She indicated
that she was accompanied
by business delegation
from South Africa
in sectors like
construction,
power, engineering,
financial services,
consulting and
investment agencies,
ICT, oil and gas
and others which
were looking for
long-term partnerships,
joint ventures
and solid and
sustainable relationships
with India.
Terming the bilateral
relationship between
the two countries
as more of an
emotional bond,
H E Ms Busi Kuzwayo,
Consul-General,
South African
Consulate- General,
Mumbai stressed
that the South
African Government
desired to work
at building stronger
ties with India
while ensuring
level playing
fields.
"South Africa
is considered
as one of the
prominent emerging
markets with robust
financial and
banking systems.
It continues to
be a region of
great economic
interest witnessing
an increase of
exports from India
from $1.53 bn
in 2005-06 to
$2.25 bn in 2006-07",
said
R Balasubramaniam,
Member, CII Western
Regional Council
& President,
Tata International
Ltd in his address
at the Conference.
He further stressed
that South Africa
offers tremendous
business opportunities
and is an ideal
gateway for entering
African, Middle
East and American
markets.
The CII Conference
on Trade &
Investment Opportunities
in South Africa
was followed by
a very successful
business networking
session which
provided a platform
for the business
delegates from
both nations to
share and build
stronger economic
and bilateral
ties.
SA's Agro &
Machinery Sectors
Offer Investment
Avenues
Earlier, speaking
in Bangalore,
where South Africa
participated in
18th International
Engineering &
Technology Fair
(IETF) organized
by CII, Ms Thabethe
said the challenge
now lied in increasing
the pace of growth
further by optimizing
the strategic
partnership between
India and South
Africa.
"The bilateral
trade between
India and South
Africa reached
$ 6.2 billion
figure in 2008
from a negligible
$ 45 million in
1993. said the
Deputy Minister,
while delivering
the keynote address
at the Conference
on "South
Africa: Trade
& Investment
Opportunities"
at IETF.
Ms Thabethe urged
entrepreneurs
to unleash the
myriad of trade
possibilities
through closer
co-operation between
India and South
Africa in sectors
including construction,
engineering, energy,
mining, auto and
auto components,
communications,
ICT, business
process outsourcing,
pharmaceuticals,
infrastructure
as well as tourism.
Ms Thabethe also
called businessmen
to explore new
opportunities
emerged as a result
of India's opened
up economy. She
said South Africa
is interested
in value added
exports to India
instead of just
exporting commodities,
which is the case
now.
In his address,
Venkataramanappa,
Minister of Small
Scale Industries
and Sericulture,
Government of
Karnataka said
that South Africa
provides immense
business opportunity
for heavy and
medium machinery
including agricultural
machinery.
He said that South
Africa and India
have always given
importance to
the growth of
Small & Medium
Enterprises and
there is a huge
opportunity for
collaboration
in technical know-how
for SMEs development.
The Minister also
said that the
Indian medicine
has good market
potential in South
Africa.
In his address
H E Francis Moloi,
High Commissioner
of South Africa
in India said
that Indian companies
could explore
the huge opportunities
in the mining
sector in South
Africa, especially
in value added
minerals. Towards
this objective,
the Government
of India could
consider more
liberalization
in the mining
sector for a win-win
situation.
S. Viswanathan,
Chairman, CII
- Karnataka and
Managing Director,
John Fowler India
Pvt Ltd, delivered
the welcome address
and Ms. Busi Kuzwayo,
South African
Consul-General
in Mumbai provided
the vote of thanks.
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