Deputy Minister Aziz Pahad to Host Mozambican Counterpart, Deputy Minister of Foreign Affairs and Co-operation Dr Eduardo Koloma

Pretoria - South African Deputy Minister Aziz Pahad will hold bilateral political and economic discussions with his Mozambican counterpart, Deputy Minister of Foreign Affairs and Co-operation Dr Eduardo Koloma at the Union Buildings in Pretoria on Friday, 23 June 2006.

Discussions between Deputy Ministers Pahad and Koloma take place within the context of South Africa's commitment to consolidate relations with countries of the region with a view to achieving the African developmental agenda.

Issues on the agenda of discussions between Deputy Ministers Pahad and Koloma are expected to include, among others:

  • Bilateral political and economic relations between both countries;
  • Preparations for President Mbeki's visit to Mozambique on 29 June 2006 where he will co-chair the South Africa - Mozambique Economic Bilateral Forum;
  • Regional developments; and
  • Other issues of mutual interest.

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.

Deputy Minister Koloma is expected to depart from South Africa on the evening of the 23 June 2006.

Bilateral Economic Relations

Total exports by South Africa to Mozambique by 2005 were valued at R6, 402 billion. South Africa imported goods from Mozambique to the value of R199, 282 million in the same period. The trade balance is positively in favour of South Africa.

South Africa and Mozambique's economic relationship is the strongest in the Southern Africa region. In 2005 statistics show that 41,4% of Mozambique's imports eminated from South Africa and about 12,9% of Mozambique exports were destined for South Africa

SOUTH AFRICA - MOZAMBIQUE TRADE

YearExportImport
20026,418,899 403,165
20035,676,203 280,806
20045,077,739 204,845
20056,402,000 199,282

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.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

22 June 2006

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