SA, Zambia walk trade tightrope

Thursday, December 8, 2016

Pretoria - South Africa and Zambia have vowed to do things differently by enhancing their relations, which in turn will redress the trade imbalance between the two SADC countries.

Relations are solid between Zambia and South Africa, with 2015 two-way trade statistics indicating that Zambia is one of South Africa’s top trading partners on the continent and is currently ranked as South Africa’s top 10 import sources in the world.

However, trade is in favour of South Africa, which has more than 120 companies operating in Zambia.

The trade balance shows a steady decline of South Africa's exports, which were valued at R11.2 billion and R7 billion in 2009 and 2010 respectively. The same decline applies to imports, as the statistics show R1.6 billion in 2009 and R1.4 billion in 2010.

Cooperation in trade and investment, science and technology, agriculture, defence, energy and culture have been eyed as sectors that need extra attention to address the imbalance.  

Both South African and Zambian companies have been encouraged to take full advantage of the excellent historical political ties to increase economic activity.

“We have taken a decision to lift our relationship and do more. In our discussions, we have talked about the number of agreements that we have in place that need to be implemented.

“We have emphasised the need to implement – we must walk the talk. We are both ready to make this Joint Commission for Cooperation (JCC) work,” President Jacob Zuma said on Thursday.

He was addressing media after official talks with his Zambian counterpart, President Edgar Lungu, who is in the country for a State visit.

On Wednesday, the inaugural session of the JCC sat in Pretoria.

The JCC will be used as a platform to address the crucial matter of the implementation of signed agreements, associated challenges and possible solutions as the two countries implement the 21 agreements and memoranda of understanding that cover a wide range of fields.

The two sister countries also agreed to review the implementation of the agreements periodically.  

“We are not going to repeat the same mistake. This time, we will do things differently. We are not going to take a long time to implement the agreements,” said President Zuma.

For his part, President Lungu reiterated that Zambia looks forward to enhancing relations with South Africa for the benefit of both nations.

“The cooperation should be win-win between these two countries. It is not going to be business as usual for our Ministers. We will be watching over their shoulders for implementation.”

Zambia on solid ground

President Lungu also used the opportunity to assure that Zambia is stable following the August presidential elections in which he secured 50.35% of the votes -- just over the 50% threshold needed to avoid a second round under a new electoral system.

“Here I am, coming from a bruising election. I want to assure you that Zambia has stabilised and we want to move forward… We want to work with our neighbours in the region to ensure that the economy improves the lives of our people.”

President Zuma described their discussions as successful, as they also touched issues affecting the region.

“We have welcomed the fact that our region is relatively peaceful and stable. We committed ourselves to working together to assist those sister countries facing political and security challenges,” said President Zuma.

The two leaders called for the implementation of the Southern African Development Community (SADC) industrialisation strategy to create industrial capacity and value chains.

They noted with concern the current drought in the region and pledged to work closely to mitigate its negative impact.

On the international front, they noted the latest global developments and agreed to continue sharing notes in this regard.

Before the start of the talks, President Zuma had rolled out the red carpet to welcome his counterpart. President Lungu was greeted by a beaming President Zuma, a 21-gun salute and guard of honour as he arrived at the Union Buildings, which were bedecked with flowers.

President Zuma and President Lungu are currently attending the South Africa-Zambia Business Forum, which will highlight trade and investment opportunities.

Relations between Zambia and South Africa are set on a firm foundation dating back to pre-democratic South Africa. Zambia played a key role in the liberation of the region, as it was home to hundreds of South African freedom fighters. - SAnews.gov.za