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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. |
