Pretoria - South African and Indian businesses have signed several memoranda of understanding (MoU) to bolster cooperation between the two countries.
Indian Prime Minister Narendra Modi is on an official visit to South Africa with a business delegation.
At a Chief Executive Officers’ Forum held in Pretoria on Friday, it was announced that several agreements have been signed, including between Hindustan Zinc (HZL) and South African company Fermel. The MoU is for the supply and maintenance of underground mining equipment to improve safety, efficiency and productivity in the modern mechanised underground mines of HZL. Fermel, in turn, will also develop local skills for the maintenance of mining equipment.
A health insurance agreement was also signed between South African company MMI Holdings and Aditya Birla Nuvo Limited Group (ABNL India). The companies have a joint agreement in the health insurance sector of India -- an agreement that was signed in June 2015. However, the current MoU operationalises the agreement.
A MoU was also signed between SAAB Grintek Defence and India’s Tata Power for the production of Land Electronic Defence Systems (LEDS-50), while a MoU was signed between India’s CIPLA and the Dube Tradeport Corporation in Durban. This agreement is for the setting up of a bio-similar plant. The medication produced will be used for the treatment of cancer and respiratory diseases. It will also cater for the South African market as well as for export. Investment in the state-of-the-art biotech facility project is around R1.3 billion.
Both countries acknowledged that the CEOs’ Forum has not been active for five years. High-level representatives said the reinvigoration of the forum will go a long way to strengthening ties between the two countries.
Speaking on behalf of acting Trade and Industry Minister Lindiwe Zulu, the dti’s Deputy Director General for Trade and Investment South Africa (TISA), Pumla Ncapayi, said the forum represents a platform where the two countries can strengthen their economic ties.
India’s co-chair of the forum, Adi Godrej, said in the last two years, India has undertaken economic reforms that include the opening up of more sectors such as defence and pensions to attract foreign direct investment (FDI) to the country.
“These changes pushed GDP growth to a new high, with GDP at 7.6%. We would like to strengthen our relationship with South Africa. We consider South Africa as our partner in the shared growth of economic prosperity,” said Godrej.
Godrej said it was concerning that bilateral trade between the two countries has been in decline.
“Bilateral trade between India and South Africa has declined from US$11 million in 2010/11 to $9.5 billion in 2015/16. This is clearly something we urgently need to address and find ways to reverse,” he said.
South Africa’s co-chair, Vivian Reddy, said while the forum was defunct in 2011, the two countries are now looking forward to the forum’s next meeting in October.
“Only through communication can we increase business between our two countries,” said Reddy.
Ncapayi said as the forum is an essential platform for both countries, the South African government is committed to supporting the forum.
“We commit to assisting businesses,” said Ncapayi, noting that both countries share similarities in terms of economic development. – SAnews.gov.za
