Mumbai: South Africa has sought Indian investment for its flourishing food processing sector.
Speaking at a conference on “Challenges and Opportunities in agro sector in South Africa”, Deputy Minister of Department of Trade and Industry Elizabeth Thabethe said that the agro-processing sector offers opportunity for investment with the backing of the South African government through policy and various incentives. Undoubtedly, agro-food processing in South Africa is a sector that is not only open for new investments and the region, but one that is in fact viable, she said.
South Africa climatic condition is conducive for growing diversity of crops, livestock and fish. There were other sub sectors with investment potential too.
The establishment of preferential trade agreements such as the African Growth and Opportunity Act for the US market and a Free Trade Agreement (FTA) with the European Union, confer generous benefits for potential investors.
Bilateral Trade
Bilateral trade between India and South Africa has increased from $45 million in 1993 to $7 billion last year. Further, India ranks among the top 10 investing countries in South Africa, with investments estimated at over $6 billion to date. The challenge now lies in increasing the pace of growth and consolidating the gains being made, she said.
In a bid to strengthen the trade ties between India and South Africa various agreements including the General Trade Agreement, Cooperation on defense issues, SME development and Capacity building through the India Technical Cooperation Programme.
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