Minister Dlamini Zuma to Co-Chair 5th SA - Germany Binational
Pretoria - South African Foreign Minister Dr Nkosazana Dlamini
Zuma, will on Monday 23 October 2006 together with her German counterpart Foreign
Minister Frank-Walter Steinmeier co-chair the 5th session of the South Africa
- Germany Binational Commission (BNC) scheduled from Monday - Tuesday 23-24 October
2006. South African-German cooperation has grown significantly since 1994, and
South Africa regards Germany as an important and valued partner.
Dlamini Zuma's participation in this BNC, being held under the banner Keep the
Ball Rolling- Investing in Common Goals, comes within the context of South Africa's
commitment to, among others, promote North-South co-operation in support of the
African agenda through partnerships with the G-8 and the African Partnership Forum
of the European Union (EU). In this regard, Germany plays a leading role in both
the G-8 and EU.
The BNC consists of 6 committees - Arts and Culture, Defence,
Environment, Development Cooperation (National Treasury and partner departments),
Science and Technology and Economic. Each of these committees is motivated by
the long term goal of achieving South Africa's domestic objectives, as outlined
through South Africa's Accelerated and Shared Growth Initiative (AsgiSA) and Joint
Initiative for Priority Skills Acquisition (JIPSA).
Issues on the agenda
of discussions between Ministers Dlamini Zuma and Steinmeier are expected to include,
Bilateral political and economic relations between both
South Africa's preparations for the 2010 Soccer World Cup and
SA-German co-operation in this regard;
A review of developments within
the European Union and Africa including Germany's respective presidencies of the
G-8 and EU in 2007 with the focus on the Promotion of the African Agenda;
resolution and peacekeeping in Africa including Sudan, the Democratic Republic
of Congo and the Great Lakes Region;
Co-operation in the multilateral
arena including the United Nations with respect to South Africa's tenure of the
Non-Permanent Seat of the Security Council 2007-2008 (Germany has expressed support
for South Africa's non-permanent seat on the UN Security Council) and the reform
of the world body and the World Trade Organisation with respect to the reform
of the multilateral trading framework; and
Other issues of mutual concern
including Iran and the Middle East.
Bilateral Economic Relations
Africa ranks 32nd as a source country to Germany for imports and 22nd as an export
destination. (Germany's trade with South Africa exceeds its trade with G8 member
Germany is SA's largest import partner, and 4th largest export
partner after Japan, the United Kingdom and the USA.
Germany ranks with
the UK and the USA among the three largest economic role players in South Africa
regarding trade, investment, finance and tourism.
is the fourth largest in South Africa. Approximately 450 German companies provide
for nearly 70 000 jobs in SA.
Major investments by German companies include
companies such as BMW, DaimlerChrysler, Volkswagen, Siemens, Bayer and Ferrostaal.
Although South Africa is Germany's largest trading partner on the African
continent, only a very small percentage of Germany's total trade takes place in
South Africa. South African companies such as Minorco, Sappi, SASOL and ABSA have
invested in Germany.
The following figures provide an indication of bilateral
Trade with Germany (in Rands)
African Trade Balance
January and July 2006
South African exports to Germany include base metals such as ferro-alloys, primary
commodities notably coal, iron ores/metal ash, food products and motor vehicles/parts.
Major South African imports include machinery (25%), motor vehicles/parts (13,3%),
electrical engineering products and chemicals.
Manufactured or value-added
products now predominate South African exports to Germany.
German companies have proved their confidence in SA through an expansion of their
operations in the country, with particularly focus on the export of manufactured
goods. Examples in this regard are the export of the C-class right-hand drive
Mercedes from East London, the Volkswagen Golf and Polo from Uitenhage and the
BMW 3-series from Rosslyn near Pretoria.
The biggest single investment
in South Africa was made with the outsourcing of Telkom's fleet management to
Debis, a then subsidiary of DaimlerChrysler, which resulted in an estimated R1
billion investment in South Africa.
The tourism sector has been a major
growth area with approximately 250 000 Germans visiting the country annually since
1997. Germany is one of South Africa's biggest source markets. South Africa has
an approximate 3,5% share of Germany's annual long-haul tourism market and it
is growing continuously.
South African Tourism- in conjunction with KwaZulu
Natal Tourism and the Western Cape Tourism Board- signed a multi-million rand
Joint Marketing Agreement with German Thomas Cook AG in 2003. The aim was to increase
the volume of overseas tourists visiting South Africa. The ground-breaking Agreement
enables 13 000 additional German travellers to escape the European winter between
November and May, flying south on twice-weekly air charters, using 269-seat B767
aircraft operated by Thomas Cook's Condor airline.
Wulff indicated that Lower Saxony wishes to deepen its existing relationship with
South Africa. He expressed an interest in skills development in South Africa,
within the context of JIPSA. Also, the enhancement of SA's call center sector
and the possibility of a student exchange programme for the training of civil
engineers (especially woman students) were discussed.
During the visit
Deputy President Mlambo-Ngcuka was invited (by Mr Wulff) to the May 2006 Industrial
Energy Fair in Hanover. Unfortunately, the Deputy President was unable to take
up the invitation.
World Cup 2006 and 2010: SA/Germany Cooperation
Chancellor Schröder offered President Mbeki Germany's willingness and full
co-operation to share Germany's experience, which was gained when Germany hosted
the FIFA Soccer World Cup earlier this year. Minister E Pahad and members of the
Local Organising Committee (LOC) have already visited Germany on several occasions
and have set up a network for co-operation. South Africa will continue visiting
Germany to gain a better analysis of the World Cup now that it is over.
Germany provided direct financial support to the restructuring
and change management process of the SADC secretariat by sending German specialists
In 1995 former President Mandela and former Chancellor Helmut
Kohl agreed that, in order to assist the South African provinces to set up effective
administrations, German Federal States should be encouraged to "twin"
with South African Provinces. Agreements have already been signed between:
Mpumalanga and North Rhine-Westphalia (very active, focusing mainly on capacity
building and HRD)
Gauteng and Bavaria (on sound footing, yielding concrete
results in community development, HRD, conservation and a number of "Blue
IQ" commercial ventures)
Western Cape and Bavaria (yielding good
results in HRD, economic development, space technology, poverty reduction, conservation
and community safety)
Eastern Cape and Lower Saxony
Province and Saxony
Kwazulu-Natal and Baden Wuertemberg (gaining momentum
in the areas of economic development, HRD, culture, agriculture, environment and
tourism - should start yielding fruit in the near future after relative quiet
Baden Wuertemberg also maintains good relations with the Eastern
Cape even though no formal agreement exists (Baden-Wuerttemberg supports a consultant
to work with CIMEC, the Eastern Cape's economic development agency).
In May 2006 a delegation from Kwazulu-Natal visited Munich and Stuttgart in an
attempt to reactivate the Cooperation Agreement between Baden-Wuerttemberg and
The city-state of Berlin has developed a "special
relationship" with Johannesburg and a Memorandum of Understanding on Project-related
co-operation was signed in May 2000.
Issued by Ronnie Mamoepa
on 082 990 4853
Department of Foreign Affairs Private Bag X152 Pretoria 0001