President Thabo Mbeki to Host Mozambican Counterpart, President Armando Emilio Guebuza, Tshwane, South Africa

Tshwane - South African President Thabo Mbeki, accompanied by Deputy Foreign Minister Aziz Pahad, will hold discussions with his Mozambican counterpart, President Armando Emilio Guebuza at the Presidential Guesthouse in Tshwane on Sunday, 13 November 2005.

The visit to South Africa by Mozambican President Guebuza comes within the context of South Africa's commitment to consolidate political and economic relations with all countries of the SADC region.

In this regard, Deputy Foreign Minister Aziz Pahad, from 31 October - 1 November 2005 co-chaired, together with his Mozambican counterpart, Deputy Foreign Minister Dr Eduardo Koloma the 4th session of the South Africa - Mozambique Joint Permanent Commission for Co-operation (JPCC) in Tshwane.

President's Mbeki and Guebuza are expected to discuss the status of bilateral political and economic relations between both countries, including co-operation projects between both countries inter alia, the Mozal I and II and the Natural Gas Project.

President Guebuza will be accompanied by Foreign Minister Dr Alcinda Abreu and Minister of Energy Salvador Namburete.

President Guebuza is expected to depart from South Africa on conclusion of discussions with President Mbeki.

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

YearExportsImports
20026,418,899 403,165
20035,676,203 280,806
20045,077,739 204,845

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.

Department of Foreign Affairs
Private Bag X152
Tshwane
0001

13 November 2005

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