Pretoria - South Africa which is not a developed country faces development challenges, says Trade and Industry Minister Rob Davies.
Speaking at the second session of the South Africa-India CEOs Forum in New Delhi, the minister said although South Africa has institutions that are comparable to those of developed countries, the country faces several challenges.
"The challenges that we are faced with are definitely of development. We have huge inequalities, poverty, and we have a glaring significant problem of unemployment in our country," Davies told delegates on Monday.
The minister highlighted that other developing nations, when engaging with trade and cooperation arrangements, should know that they will often have similar manufacturing sectors and complimentary aspects.
"There are things that you (India) can do better than us, that we won't be doing, and also there are things that we (SA) do, that you won't be doing as India. So, we must decide whether we want to build our corporation on the basis of the things that we are directly competitive, or where we are complimentary," said the minister.
Davies also expressed concern that the over-valued rand is a big barrier to the manufacturing sector.
The forum resolved to further enhance cooperation in the financial services, pharmaceutical and health, mining, manufacturing and infrastructure and energy sectors.
Yesterday Davies urged the private sector to come up with projects that will enhance South African exports to India. The minister told South African CEOs that government is committed to support them in becoming more involved in India.
The SA-India CEOs Forum is a platform for business community interaction between the two countries.
Today Davies travels to Oslo, Norway, to take part in President Jacob Zuma's state visit.
Last month, Oslo was rocked by a bomb blast in front of the Norwegian prime minister's office and a shooting incident in nearby Utoya Island.
