Pretoria - Zambia has urged South Africa to work towards addressing the decline in trade balance between the two countries as revealed by the latest statistics.
"It's something that concerns us but we have agreed that there are ways that things can be done to address the problem, we think the issue can be overcome," said Zambian President Rupiah Banda, who began his three-day official visit to South Africa on Thursday.
President Jacob Zuma and Banda resolved to ensure that trade relations between the two countries were managed in a manner that benefited both sides. Despite South Africa being the largest exporter to 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. Cabinet Ministers had been directed to ensure the full implementation of the Memorandum of Understanding on trade and industrial cooperation, as well as management of environment and natural resources.
Zambia remains one of South Africa's top ten trading partners on the continent and Banda's visit sought to reaffirm the trade relations that exists between the two countries.
"Our historic relations, which were cemented during the difficult days of our liberation struggles against colonialism and apartheid, continue to inspire us to do more to address developmental challenges facing our respective countries," Zuma said.
He said the meeting in Pretoria has noted with satisfaction the progress made in many areas of cooperation since a South African delegation visit to Lusaka last year. "We both welcome the progress being made to implement the agreement in the field of energy ...we are happy that our energy utilities Eskom and Zesco are working well together to the extent that they are negotiating an agreement, which we hope will be signed soon," said Zuma.
The success of the cooperation will be measured by the extent and vigor with which the implementation of the agreement is carried out, he added.
Meanwhile, the two leaders have agreed to call a special summit in Lusaka in the new year to discuss the political situation unfolding in both Zimbabwe and Madagascar.
Zuma recently said he was satisfied with the progress being made by Zimbabwean leaders in realising the full implementation of the Global Political Agreement.
As Southern African Development Community mediator in Zimbabwe, Zuma said he has received a report of the mediating team and is scheduled to meet with the body soon to discuss it.
