South Africa and Chile are looking into advancing diplomatic, economic and trade ties, especially in the mining and energy sectors.

This emerged after President Jacob Zuma and his Chilean counterpart Michelle Bachelet Jeria met at the Union Buildings on Friday. The two held talks on how to advance cooperation and expand mutually beneficial opportunities for South Africa and Chile.

The talks were held in line with the growth targets set out in South Africa’s New Development Plan, which includes measures to provide energy security and promote sustainable mining communities. The session was also an opportunity of the two countries to reaffirm the existing areas of cooperation.

Bachelet, who is on a two-day State Visit, received a proudly South African welcome at the Union Buildings, complete with a military parade and a 21-gun salute.

Bachelet said her visit was the perfect moment to set a new pace in bilateral relations between Pretoria and Santiago.

"We truly believe that South Africa and Chile are like-minded countries. We share a lot of values. We believe that we can also bring resources from both countries to cooperate trilaterally with the less developed countries of Africa, joining efforts and funds," she said.

South Africa, according to President Zuma, has expressed an interest in exploring cooperation in energy, defence, science and technology, trade and investment, mineral resources, social development, agriculture and environmental issues.

Chile, for its part, has expressed an interest in South Africa’s master energy plan and mining, which two key pillars in the country’s economy.

There are numerous opportunities for cooperation between the two countries in the areas of energy pollution and emissions control; and alternative clean energy sources such as nuclear power, natural gas, thermoelectric and hydroelectric energy.

President Zuma said with South Africa being a major investor in the Chilean mining sector, there is huge potential for exchange of technologies to promote a safer mining environment.

This would be imperative as Chile moves from open pit to underground mining.

President Zuma said South Africa will share its expertise in this regard, with a bilateral agreement on cooperation in the field of mineral resources in sight.

“We have agreed that dialogue between the relevant ministries should take place to discuss cooperation,” President Zuma told a media briefing after the talks, which he described as successful.

This would be beneficial for the trade relations of the two developing countries.

South Africa is Chile's largest trading partner in Africa, making South Africa one of the largest foreign investors in the Chilean mining sector. South African companies also regularly participate in large international mining exhibitions that take place in Chile (EXPOMIN, EXPONOR and Electra Mining Exhibition).

The top exports from South Africa are steel and steel products, which amounts to 61.6% of total exports.

Balancing trade relations

Although trade ties between the two countries are robust, the trade balance is currently in favour of Chile.

To address this, an Agreement on the Avoidance of Double Taxation and the Memorandum of Understanding on the establishment of a Joint Trade and Investment Commission are on the cards.

“To further expand trade and investment, we have agreed that the Memorandum of Understanding on the Establishment of a Joint Trade and Investment Commission, which was signed between the two governments in July 2012, should be implemented without delay.

“We agreed that the Joint Commission on Trade and Investment will meet in Chile before the end of 2014 in order to finalise a short, medium and long term plan of action,” said President Zuma.

South Africa and Chile are leading countries in the field of astronomy. The two countries host technologically-advanced observatories such as MeerKat in the case of South Africa and the European Southern Observatory, in the case of Chile.

President Zuma said there was a significant potential for research and development co-operation between the two countries in this regard.

With regards to defence, South Africa has shown interest in cooperating with Chile on defence matters.

Chile plays a significant role as provider of UN peacekeeping troops, being the fourth largest contributor of troops in the Latin American region.

South Africa also envisages cooperation amongst the navies of the two countries. This, according to President Zuma, will help South Africa gain knowledge on how to deal with challenges such as piracy, drug and human trafficking in the coastlines.

This will be imperative, especially since South Africa has recently unveiled Operation Phakisa, which is expected to place marine resources at the centre of the economy.

International cooperation

In the global arena, South Africa and Chile are like-minded countries in terms of their mutual positions on international issues of reform of multilateral institutions.

In this light, they reiterated their call for the reforms of the UN to be more representative of the developing countries.

“The UN Security Council should be represent the views of the South, Africa and to more efficiently tackle the crisis going on in the Middle East and Palestine,” said Bachelet.

“They must respect human rights. Not only must they stop the fire and stop the killing they must allow the humanitarian support that is needed to enter the country and peaceful negotiations.”

With Chile in the UN Security Council, Bachelet said they are raising their voice and calling for all parties in the Israel-Palestine conflict, which she labelled as a “tragedy”, to commit to an immediate ceasefire and to work towards a peaceful settlement.

South Africa has in the past shared the same views.

Bachelet, whose state visit will also see her delivering a keynote address at the 12th Nelson Mandela Annual Lecture in Cape Town, said she has always looked up to Mandela and was inspired by his wisdom, integrity and his quest for a better life for all.

– SAnews.gov.za

Washington – South Africa has welcomed the commitment by President Barack Obama to support the continuation and enhancement of the African Growth and Opportunity Act (AGOA).

Obama made the remarks at the US-Africa Business Forum in Washington on Tuesday. His backing of a new AGOA term came as a pleasant surprise to many, who have been waiting to hear Obama’s position on the issue. US law makers are expected to vote on the renewal of AGOA when the current commitment term expires next year.

“We still do the vast majority of our trade with just three countries - South Africa, Nigeria and Angola. It’s still heavily weighted towards the energy sector. We need more Africans, including women and small- and medium-sized businesses, getting their goods to market,” Obama said.

“All leaders in Congress - Democrats and Republicans - have said they want to move forward. So I’m optimistic we can work with Congress to renew and modernise AGOA before it expires, renew it for the long term. We need to get that done.”

South Africa’s Ambassador to the United States, Ebrahim Rasool, welcomed Obama’s commitment to back a renewal of the scheme.

“On the investment side, the United State is the biggest source of foreign investment to South Africa so AGOA must continue and we want to see the inclusion of South Africa in the programme,” Rasool told SAnews in Washington.

“For South Africa, if we can leave here with a firm commitment that AGOA will continue and that South Africa will continue to be in it, that will great for us because that will mean we save US$9 billon.”

AGOA is a legislation that provides duty-free market access to the United States for qualifying sub-Saharan African countries by extending preferences on more than 4 600 products.

It also provides duty-free access to all clothing (as well as certain textile) exports from countries that qualify. Through the act, South Africa has reportedly exported significant quantities of manufactured goods, most notably about 60 000 automobiles a year.

Since its inception in 2002, AGOA has achieved a great deal for both the United States and African countries that benefit from it. Its work is not yet completed.

AGOA emphasises on Africa’s emerging textile and apparel industry as the primary sector for trade benefits. – SAnews.gov.za

Taiwan has plenty of business opportunities, especially in the agro-processing and jewellery sectors, says Director of the Department of...

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South Africa’s business delegation is in Taiwan today, where it will explore investment opportunities.

The delegation, representing 18 companies, is on the second leg of the Outward Selling and Investment Mission (OSIM) supported by the Department of Trade and Industry (dti).

The investment mission, which profiles South Africa as an investment destination, kicked off in Thailand on Monday.

The delegation arrived in Taipei on Wednesday and will participate in various business-to-business meetings, site visits and trade and investment seminars.

South African Head of Mission in Taiwan, Musawenkosi Aphane, said trading and investment opportunities were plenty in Taiwan.

In welcoming the delegation, Aphane said the minimum availability of natural resources in Taiwan creates an opportunity for most businesses to seek ventures in Taiwan, especially in the co-operation of small businesses, agro-processing and Special Economic Zones.

He also encouraged all sectors to make use of this opportunity and learn from their business counterparts in Taiwan.

Sectors targeted for this OSIM are agro-processing, jewellery and automotive components sectors.

The investment mission will conclude on Friday. – SAnews.gov.za

South Africa and Japan celebrate 10 years of successful science and technology cooperation this year.

The decade-long relationship has seen over R85 million invested in about 50 joint research and development projects in the areas of life sciences, climate change, astronomy and space science, and human capital development, among others.

The two countries have enjoyed cordial relations since signing a bilateral science and technology cooperation agreement in 2003.

Speaking at a ceremony held in Pretoria to celebrate this milestone, Science and Technology Deputy Minister Zanele kaMagwaza-Msibi, said: "South Africa and Japan have made significant strides in intensifying support for basic fundamental and applied research, development and innovation over the past decade."

Deputy Minister Magwaza-Msibi expressed her gratitude to all the researchers and officials, who have served their countries and the partnership with pride.

The National Research Foundation is the agency responsible for promoting this collaboration on behalf of South Africa's Department of Science and Technology (DST), while the Japan Science and Technology Agency and the Japanese Society for the Promotion of Science manage the partnership on behalf of Japan.

The highlights of this partnership include the DST-Hitachi Scholarship Programme, which has benefited more than 10 South African engineers since 2009.

The engineers spend three months at a time visiting Hitachi -- the Japanese multinational corporation specialising in high-technology equipment, including power -- learning gas and steam-turbine engineering.

Last year, the Tshwane University of Technology and Nagaoka University of Technology signed a memorandum of understanding promoting student exchanges to contribute to the development of higher education and research in South Africa.

It is expected that research collaboration will be enhanced through such cooperation.

"It is our wish that the momentum, energy and drive of these researchers and the responsibilities borne by the officials be a motivation for enthusiastic and continued advancement of our partnership and good working relationship with your office and in Japan," said Deputy Minister Magwaza-Msibi to the Ambassador of Japan, Yutaka Yoshizawa.

Yoshizawa expressed his gratitude for the successful bilateral cooperation in science and technology between the two countries.

The Japan International Cooperation Agency has been in close cooperation with many researchers and stakeholders to implement science and technology-related projects under the Science and Technology Research Partnership for Sustainable Development.

"Given the high-level activities in the science and technology field in both countries, there will be a number of areas for further cooperation between the two countries," said Yoshizawa, expressing his wish that the cooperation between South Africa and Japan would grow from strength to strength. – SAnews.gov.za

Telecommunications and Postal Services Minister Siyabonga Cwele has released a gazette requesting information on Small, Micro and Medium Enterprises (SMMEs) for the Information and Communications Technology (ICT) sector. “This is part of government’s priority to nurture and support SMMEs as the bedrock of economic development. As the department, this information will assist us to have [...]Telecomms requests info on SMMEs is a post from: South Africa Business



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South Africa and Lesotho are expected to strengthen bilateral relations when President Jacob Zuma kicks off his working visit to Lesotho, on Tuesday.

During the visit, President Zuma is expected to discuss bilateral cooperation and regional and multilateral matters with the government of Lesotho.

They are further expected to share and exchange views on political developments in the region, especially the fragile coalition government in Lesotho, following reports of fears of a coup.

The main political parties in Lesotho have agreed to continue working together after emergency talks mediated by the Christian Council of Lesotho.

Coalition partners had been angered by Prime Minister Thomas Thabane's perceived aloofness, accusing him of operating unilaterally, without consulting other partners. This prompted a junior coalition partner, the Lesotho Congress for Democracy, who vowed to forge a new governing alliance to oust the Prime Minister.

In response, the premier suspended parliament - with the blessing of the king - allowing him to dodge a vote of no confidence.

South Africa, which has been monitoring the situation, has recently expressed concern about the situation, while it commended the parties for vowing to continue to work together for peace and stability of the country.

Lesotho Highlands Water Project

The leaders are also likely to discuss the progress of the Phase II of the Lesotho Highlands Water Project.

The project started in 1986 as a joint venture to supply water to South Africa, especially the rapidly growing urban population of Gauteng, and to meet Lesotho's electricity needs.

The project delivers about 780 million m3 of water to South Africa per year. It is regarded as Africa's largest transfer project as well as the largest ongoing bi-national construction project.

Phase two of the project, which will be completed by mid-2023, is estimated to cost around R11.2 billion and will see the construction of Polihali Dam, a tunnel and several developments around it.

Lesotho and South Africa share tight bilateral and economic relations. The two are also members of the Southern African Customs Union (SACU) which allows for a free flow of trade between the two countries. It is also the world's largest producer of diamonds and the trade has transformed it into a middle-income nation. - SAnews.gov.za

A South African business delegation has arrived in Thailand for the Outward Selling and Investment Mission (OSIM), where they will profile the country as an investment destination of choice.

The delegation, which is supported by Department of Trade and Industry (the dti), will participate in various business-to-business meetings, site visits and trade and investment seminars, until Wednesday.

The Director of Golden Touch Manufacturing Jewellers, Mbulelo Singapi, from Uitenhage, in Port Elizabeth, who is part of the delegation, said his company was looking forward to meeting key decision makers and exchanging business ideas with the Thai businesspeople.

“The key is always to prepare before you get to these meetings and seminars so that you can always return with something tangible for your business to move forward,” added Singapi.

Singapi said despite being a small manufacturing company, they do have the capacity to produce any amount of order should they manage to sign deals in Thailand.

The objective of the OSIM, according to the department, is to create market access for South African value-added products, and services to enter Asian markets- especially for agro-processing, jewellery and automotive components sectors.

The choice of these two countries is informed by the dti’s diversification strategy, which aims to leverage market opportunities and ensure that South Africa’s exports to dynamic high growth markets are facilitated.

Total trade between Thailand and South Africa was R31.1 billion in 2013; with a trade balance of R22 billion in favour of Thailand.

South African exports to Thailand totalled R4.6 billion, while imports totalled R26.5 billion in the same year. South Africa mainly source special classification products such as vehicle parts which constitute 45% of imports. - SAnews.gov.za