Deputy Minister Aziz Pahad to Co-Chair 4th Session of South
Africa - Mozambique Joint Permanent Commission for Co-operation, Tshwane, South
Africa, 31 October - 1 November 2005
Tshwane - South African Deputy Foreign
Minister Aziz Pahad will together with his Mozambican counterpart, Deputy Minister
Dr Eduardo Koloma co-chair the 4th session of the South Africa - Mozambique Joint
Permanent Commission for Co-operation (JPCC) in Tshwane, South Africa from Monday
- Tuesday, 31 October - 1 November 2005.
This visit occurs within the context
of South Africa's commitment to consolidate political and economic relations with
all countries of the SADC region with the objective of creating the conditions
for this sub-regional building block to contribute fully to the implementation
of NEPAD's programme for socio-economic upliftment for the continent.
Joint Permanent Commission for Co-operation (JPCC) regulates bilateral relations
between both countries, South Africa and Mozambique have since enjoyed favourable
bilateral and multilateral relations.
Utilising the JPCC as an enabling
mechanism, more than 25 Agreements, covering various spheres of co-operation,
inter alia, Fisheries; the Maputo Harbour; Agricultural development; Natural Gas
Trade; Demining; the Maputo Development Corridor; a Joint Water Commission, Promotion
and Reciprocal Protection of Investments and Customs Administration, have been
In addition to the JPCC, bilateral relations between both
countries are co-ordinated through the Heads of State Economic Bilateral Forum
instituted in 1997. This forum has ensured the successful implementation of a
number of strategic projects between the two countries, inter alia, Mozal I and
II and the Natural Gas Project.
South Africa and Mozambique share views
on a number of issues affecting the SADC region and the African continent including
the implementation of NEPAD. Both countries have also shown their united political
commitment to work towards the cessation of armed conflicts on the African continent,
inter alia through the successful deployment of South African and Mozambican troops
in a peacekeeping capacity in Burundi.
Bilateral Economic Relations
Mozambique is South Africa's second largest export market, with trade
having increased dramatically over the past three years. South Africa is currently
Mozambique's largest foreign investor. Foreign Direct Investment by South Africa
in Mozambique exceeds US$ 7 billion.
South Africa and Mozambique's economic
relationship is the strongest in the Southern Africa region. Trade between the
two countries is on the increase, with 57.2% of Mozambique's imports emanating
from South Africa (18% of South Africa's exports to Africa). About 26.2% of Mozambique
exports are destined for South Africa.
SOUTH AFRICA - MOZAMBIQUE TRADE
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
- US$63 million by Illovo Sugar in Maragra sugar mill;
(US$ 70 million);
- CDM (US$ 22 million); and
- US$15,5 million
investment by McCormack to construct Matola Plaza outside Maputo.
by Ronnie Mamoepa on 082 990 4853
Department of Foreign Affairs
30 October 2005