February 10, 2004
By Margie Inggs
Durban - Annual bilateral trade between India and South Africa had increased from zero to $1 billion since 1994, Ajay Swarup, India's consul general, said at the opening of a buyer-seller meet here yesterday.
In an interview, he said exports and imports were fairly evenly balanced, excluding gold and diamond purchases at international auctions, which added a further $1.5 billion a year to the trade statistics.
The buyer-seller meeting was part of an effort to promote interaction between the two business communities, which not only exchange trade but have begun making investments in each other's countries
In South Africa, India's UB Group has acquired Sorghum Breweries and Indian businessmen have significant investments in the hospitality industry.
Tata Steel is also planning a $50 million investment in a ferrochrome smelter in Richards Bay.
Old Mutual has forged a joint venture with Kotak Mahindra in India's financial services sector while SABMiller has acquired a number of breweries in Asia.
"The two governments are doing everything possible to facilitate the development of closer ties," Swarup said.
Four agreements were signed during President Thabo Mbeki's visit to India in October last year, when it was agreed to set up an Indian-South African chief executive's forum following the success of the India-South Africa Commercial Alliance.
A memorandum was signed on bilateral air services in November and a framework agreement on free trade is being actively considered by the two governments.
"In addition, the initiative taken to establish intercontinental linkages between India, South Africa and Brazil would provide enormous opportunities to business and industry in the two countries to expand mutually beneficial tie-ups," said Swarup.
"It is now up to the business communities of the two countries to take advantage of the excellent groundwork prepared at government level and take India-South Africa economic and commercial relations to greater heights."
Swarup said India and South Africa were trying to develop a trilateral joint commission and the first meeting would be held in Delhi during the next few months.
India exported over 5 million tons of food grains to South Africa between April and September last year and Swarup said good scope existed for co-operation in agroproducts and food processing.
Publisher: Business Report
Source: Business Report