Pretoria - South Africa will continue to work towards closer collaboration with the continent on issues such as infrastructure development and the acceleration of industrialisation, Deputy Trade and Industry (dti) Minister Elizabeth Thabethe said.
“We have also agreed with our partners, including Zimbabwe, that we must do more collaborative work in developing relevant institutions more so now, in the face of the challenging global financial environment,” said Thabethe on Thursday.
Speaking at the South Africa-Zimbabwe Trade and Investment Seminar that took place at the Zimbabwe International Trade Fair in Bulawayo, Thabethe said that it was the South African government’s firm belief that regional economic integration was a critical element in deriving optimal benefit from the two countries’ deepening partnerships.
The deputy minister said that South Africa through the dti has adopted a strategy for economic engagement with the government of Zimbabwe. The main objective of the strategy was to achieve mutual economic growth and development through industrial development, infrastructure development and market integration.
“This strategy adheres to New Partnership for Africa’s Development (NEPAD) principles and aims to mediate the historical marginalisation of the African continent in the global political economy.”
Thabethe said that after Zimbabwe entered into an inclusive government arrangement, it has managed to regain international business confidence as well as re-attracted Foreign Direct Investment.
“Despite its challenges, Zimbabwe managed to approve a total of 450 investment proposals worth more than US$2.8 billion since 2010. This can be attributed to the recent economic stability. It is important to note that Zimbabwe is a country with a vast potential for growth in which investors can leverage on the unrivalled mineral wealth, a stable dollarized economy, lowest inflation in SADC and a highly literate and skilled workforce, among others,” she said.
Two-way trade between the two countries in 2012 stood at R18.8 billion compared to R18.5 billion in 2011 and R 16.5 billion in 2010. This, she said, demonstrates a steady growth on trade between the two countries, with a trade balance in favour of South Africa.
“It should be noted that imports from Zimbabwe increased by more than 20% from 2011 to 2012, which is a welcome improvement from R 2.9 billion to R3.1 billion,” said Thabethe.
The deputy minister is leading a group of 47 South African companies that are participating in the trade fair. The 47 companies are an increase from the 34 companies that participated in the multi-sectoral, multi-national fair last year.
The trade fair is widely recognised as the largest intra-regional trade fair south of the Sahara with this year’s theme at the exhibition being “Building value, Enhancing growth”. - SAnews.gov.za
