President Thabo Mbeki to host Mozambican President Armando Guebuza for the Heads of State Economic Bilateral Meeting, Presidential Guesthouse, Pretoria, South Africa, Friday, 15 - Saturday, 16 April 2005

Pretoria - South African President Thabo Mbeki will host his Mozambican counterpart, President Armando Guebuza on a working visit from Friday - Saturday, 15-16 April 2005 during which both Presidents will co-chair the Heads of State Economic Bilateral Meeting at the Presidential Guesthouse in Pretoria on Friday, 15 April.

President Guebuza's visit to South Africa is the first since his recent election as Mozambique's President succeeding President Joachim Chissano. The Economic Bilateral Meeting was established in 1997 to help strengthen and consolidate economic bilateral relations between South Africa and Mozambique and within the overall objective of working for the renewal of Africa and a better world.

President Mbeki will be accompanied by Ministers Jeff Radebe, Marthinus van Schalkwyk, Lulu Xingwana, Nosiviwe Mapisa-Nqakula and Phumzile Mlambo-Ngcuka whilst President Guebuza will be accompanied by Mozambican Ministers of Foreign Affairs and Co-operation, Interior, Transport and Communications, Industry and Commerce, Energy and Minister in the Presidency for Diplomatic Affairs

The meeting will identify potential macro-economic projects in Mozambique whilst evaluating progress and ensure the successful implementation of ongoing projects in the fields of labour and migration, transport and communication, energy, environment and tourism spatial development initiatives (SDI's), trade and industry, and agriculture since the last meeting held on 27 August 2003 in Pemba, Mozambique.

The following agreements will be signed on conclusion of discussions between both delegations:

  • The Memorandum of Understanding on Co-operation in the Industry and Trade Programmes;
  • The Agreement on the Waiver of Visa Requirements for Holders of Ordinary Passport

Bilateral Economic Relations

Mozambique is South Africa's second largest export market in Africa, with trade having increased dramatically over the last few years. South Africa is currently Mozambique's largest investor with Foreign Direct Investment amounting to R8 billion, representing 247 projects.

The Industrial Development Corporation (IDC) has been utilised by the Government of South Africa as the primary catalyst for South African investment in Mozambique. To date, the IDC has approved funding for 10 projects geographically spread throughout Mozambique and is currently considering/investigating 6 additional projects in the country. The spread ranges from mining and mineral beneficiation, agriculture, tourism, chemicals, forestry, transport infrastructure to energy.

The Mozal Aluminium Smelter (Mozal 1 and II) remains the IDC's largest investment outside the borders of South Africa. Another major project funded by the IDC is the titanium-bearing mineral sands in southern Mozambique (US$ 600 million). Other major investments of South African origin in Mozambique are:

  • Sasol Gas Pipeline Project (US$ 1.4 billion);
  • US$50 million investment by SABMiller in beer factories in Maputo and Beira;
  • US$63 million by Illovo Sugar in Maragra sugar mill;
  • Xinavane (US$ 70 million);
  • CDM (US$ 22 million); and
  • US$15,5 million investment by McCormack to construct Matola Plaza outside Maputo.

The Natural Gas Pipeline project has provided South Africa with an inexpensive source of energy which has already been earmarked to serve the Gauteng area whilst enabling Mozambique to reduce the trade deficit.

Likewise the Mozal Aluminium Smelter is providing South African investors with a substantial return on their investment, whilst the Mozambican economy benefits significantly from the export of aluminium produced at the Mozal I and II Smelters.

Trade statistics

YearSA Exports Values (MN)SA Import Values (MN)
2000 R 4 996 925 000,00R362 847 000,00
2001R5 774 064 000,00R303 905 000,00
2002R6 418 899 000,00R403 165 000,00
2003R5 676 203 000,00R280 806 000,00
2004R5 077 739 000,00R204 845 000,00

Issued by Ronnie Mamoepa on 082 990 4853.

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

14 April 2005


Media Programme for the South Africa - Mozambique Economic Bilateral Heads of State Meeting, Pretoria, South Africa, Friday, 15 April 2005

Friday, 15 April 2005

08:00 Arrival of media at Waterkloof Airforce Base (please present media cards on arrival)
Venue : Waterkloof Airforce Base
Pretoria

Contact : Hugo Lambrechts on 084 890 8022

09:00 Arrival of President Armando Guebuza

09:30 Arrival of media for photo opportunity ahead of South Africa - Mozambique Economic Bilateral Meeting to be co-chaired by Presidents Thabo Mbeki and Armando Guebuza
(please present media cards on arrival)

Venue: Presidential Guesthouse
Bryntirion Estate
(Enter through Gate 9 on Church Street)
Pretoria

Contact: Hugo Lambrechts on 084 890 8022
Malerato Sekha on 082 467 8579

10:00 Arrival of President Armando Guebuza

To be received by President Thabo Mbeki

11:30 Arrival of media for signing ceremony and press conference on conclusion of SA-Mozambique Economic Bilateral Meeting
(please present media cards on arrival)

Venue: Presidential Guesthouse
Bryntirion Estate
(Enter through Gate 9 on Church Street)
Pretoria

Contact: Hugo Lambrechts on 084 890 8022
Malerato Sekha on 082 467 8579

12:00 Signing Ceremony

Press Conference

For further information contact

  • Hugo Lambrechts on 084 890 8022
  • Malerato Sekha on 082 467 8579

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

14 April 2005


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