Deputy Minister Aziz Pahad to Undertake Three Nation Visit to
Central and East Asia, 19-28 September 2005
Tshwane - South African Deputy
Foreign Minister Aziz Pahad will undertake a three-nation visit to central and
east Asia during which he will pay official visits to South Korea, China and North
Korea from Monday - Wednesday, 19-28 September 2005.
The visit comes within
the context of South Africa's commitment to consolidate bilateral relations with
all countries of the South in an attempt to create the conditions for the development
agenda of the South to be achieved. In this regard, Deputy Minister Pahad will
hold bilateral political and economic discussions with his South Korean, Chinese
and North Korean counterparts, Vice Minister Lee Tae-sik, Vice-Minister of Foreign
Affairs Dai Bingguo and Vice-Minister CHOE Su Hon respectively.
Deputy Minister Pahad will also hold discussions with Assistant Foreign Minister
LU Guozen while he is also scheduled to pay a courtesy call on the President of
the Presidium, Kim Yong Nam in North Korea.
Issues on the agenda of discussions
are expected to include:
- The status of bilateral political and economic
relations between South Africa and each of the countries;
within the south-east Asia region;
- A briefing by Deputy Minister Pahad
on developments in Africa and the SADC region; and
- Other issues of mutual
Economic Bilateral Relations
of Korea (South Korea)
Bilateral economic trade relations between South
Africa and South Korea have been increasing yearly with Seoul presently being
South Africa's fourth largest trading partner in Asia. South Africa is Korea's
largest trading partner in Africa. In this regard, total trade amounted to US$
1,1 billion US dollars in 2003.
Trade between South Africa and Korea is
of a complementary nature and encompasses a broad range of products, minerals
and semi-finished products to sophisticated high-technology electric and electronic
products. South Africa is a large supplier of bulk raw materials and semi-processed
minerals and metals essential for numerous production processes in Korea such
as gold, coal, ferro-chromium, ferro-manganese, iron ore, stainless steel, lead,
copper, nickel and zinc.
South Korean exports to South Africa are predominantly
made up of value-added or manufactured products. Products such as automobiles,
auto tires, woven fabrics, apparel as well as industrial electronic and consumer
electronic goods are increasingly making inroads into the South African market.
Nine Koran conglomerates have established branch offices in South Africa,
including Samsung, Hyundai, Daewoo and LG International. The Korea Trade Promotion
Corporation (KOTRA) established an office in Johannesburg during June 1992.
Minister Pahad will depart from Seoul for Beijing, China on Thursday, 22 September
South Africa is China's key trade partner in
Africa accounting for 20,8% of the total volume of China-Africa trade. China has
set up more than 80 companies in South Africa since 1998 while Chinese FDI to
South Africa amounted (cumulatively) to about US$ 199.3 million, while South African
FDI into China amounted to about US$ 700 million (excluding offshore investments
from South African corporates such as SAB Miller and Anglo American. South Africa's
exports to China consist mainly of raw materials such as aluminium, nickel, manganese,
zirconium, vanadium oxides, chromium ores, granite, platinum and gold. China's
exports to South Africa have included mainly manufactured products, such as footwear,
textiles, plastic products, electrical appliances, tableware and kitchenware.
The complementary nature of the two economies provided the impetus for the growth
of trade. At the same time, bilateral trade amounts to only a very small percentage
of both China and South Africa's international trade profile, suggesting that
there is still enormous potential for an increased exchange of goods and services.
to 2004 statistics South Africa exports reached nearly R5.5 billion with China
and imported more than R18 billion of manufactured goods from China.
addition, China's economic system is the third largest in the world. In 2004 China
had the world's seventh largest gross domestic product (GDP). The Chinese economy
continued to grow robustly at 9.8% and 9.6% in the first and second quarter of
2004. Latest figures of the first two months of 2005 are showing that China's
exports swelled to $95 billion an increase of 36% from a year earlier while imports
to china grew by 8% to $84 billion, leaving a surplus of $11 billion. The Chinese
Ministry of Commerce forecasting that 2005 surplus will be a lot bigger. China
had a surplus of $32 billion in 2004. Much of the export growth has been in textiles
and garments, shoes, electronic goods, computers and cellphones. In January 2005
China exported garments to the value of $9.5 billion.
trade reached about $29.5 billion in 2004, an increase of 59% over 2003. Growth
since 2001 has increased at an average of 31.2 percent a year.
People's Republic of Korea (North Korea)
Exports to North Korea consists
mainly of mineral and chemical products as well as prepared foodstuffs, whilst
imports consisted mainly of textiles and base metals.
The bilateral trade
between South Africa and North Korea is as follows:
||Imports from N Korea ||Exports
to N Korea ||Total|
355,00 ||R18, 174,000 ||R26,
493, 000 ||R8, 348, 000 ||R25,
881, 000 ||R9, 020, 000 ||R17,
271, 000|| R72, 748, 000 ||R86,
000 ||R39, 489, 000 ||R39,
Issued by Ronnie Mamoepa on 082 990 4853
of Foreign Affairs
Private Bag X152