Kolkata: Ms Elizabeth Thabethe, South Africa's deputy minister of trade and industry, will lead a delegation of 45 South African business people on an Investment and Trade Initiative (ITI) to Chennai and Mumbai in India from March 19-23, 2012.
The ITI is part of the Department of Trade and Industry's export and investment promotion strategy that focuses on India, amongst others, as a high growth export market. Both legs of the ITI will include a mini exhibition where South Africa's capabilities in sectors like agro processing, beneficiated metals, mining technology, automotive components, electro-technical and logistics will beshowcased .
"Participation by South African companies in the ITI will provide an excellent platform for identifying trade and investment opportunities in the two countries in the targeted sectors, createawareness of South African value added goods and services, and increase South Africa's exports to India. It will also facilitate increased foreign direct investment into South Africa as well as joint ventures between South African and Indian companies," Thabethe said.
Bilateral trade between South Africa and India has experienced an upward trend between from $2.2 billion to $5.7 billion between 2006 and 2010. The total trade increased by an average of 28% between 2009 and 2010 and the average growth rate over the past 4 years is 30.4%. Trade statistics depict a trade balance in favour of South Africa since 2009.
South Africa's exports to India mainly comprise of raw materials and unprocessed goods (coal, briquettes, solid fuels, manganese ores, copper ores, ferrous waste and scrap metal) and there is a drive to diversify from exporting unprocessed raw materials to value added products and services. Imports from India comprise of petroleum oils, motor cars/vehicles, telephone sets including telephones for cellular networks, equipment and motor vehicles for transporting goods.
Indian multinationals that have entered the South African market include, Tata Steel, Tata Motors, Tata Consultancy Services, Mahindra Group, Cipla, Ranbaxy and Ashok Leyland. Total foreign direct investment from India to South Africa, to date, amounts to approximately $3.8 billion.
South African multinationals have also been active in India with South African Breweries acquiring a majority stake in Mysore Breweries and energy giant Sasol exploring the possibility of setting up a multibillion dollar plant in India. In addition the Airports Company of South Africa, as part of GVK Consortium won a bid for the modernisation of Mumbai Airport.
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