Pretoria - South Africa, with its first-world economic infrastructure, remains a logical investment destination for European Union (EU) businesses, says the Industrial Development Corporation (IDC).
"SA remains a very logical destination for EU businesses. It’s a sophisticated and promising emerging market, with a unique combination of highly developed first-world economic infrastructure and vibrant emerging market economy,” said the IDC’s Chief Financial Officer, Gert Gouws.
Gouws was speaking at the second SA-EU Business Forum held on Wednesday under the theme ‘Building Business Partnerships for Growth and Employment’.
The EU, said Gouws, was a vital partner for South Africa in advancing job-creating growth.
"We respect that the EU [companies operating in SA] generally employs a workforce that is proudly local... thus, supporting job creation."
Gouws said although the trade balance between the EU and SA has not been in favour of SA, the country's export basket was becoming more diversified to include processed agricultural products, among others. Imports from the EU include motor vehicle parts.
The levels of trade between South Africa and EU have not returned to the levels they were at before the onset of the global financial crisis.
Total trade with EU countries last year was R383 billion compared to R419 billion in 2008. In 2008, SA exported R186 billion worth of goods, which fell to R122 billion in 2009.
Imports from the EU, however, have recovered to more than the levels which they reached in 2009. Imports were R233 billion in 2008, last year they were R239 billion.
Improving mutual benefits
The existing partnerships that SA has with the EU were mutually beneficial, Gouws noted.
The Business Forum provides a platform for business and government from South Africa and the EU to promote and strengthen economic, trade, business and investment ties.
The forum is attended by major corporations, organised business and government officials from the EU and South Africa.
The Business Unity South Africa (BUSA) CEO, Nomaxabiso Majokweni, said there was a need to look at inclusive growth that created employment.
Xolani Qubeka, the CEO of the Black Business Council, called on big business to partner with small business so as to minimise poverty and create jobs.
Marvin Benjamin of BusinessEurope -- which represents more than 20 million companies from 35 countries -- said there was potential to grow the relationship between SA and the EU.
South African exports to the EU were of a diversified nature and were value-added. Benjamin said the issue of "unacceptably high" youth unemployment in both SA and the EU could be addressed by the development of apprenticeship schemes.
Among the challenges the EU faced in doing business in South Africa was the low availability of skilled labour, Benjamin said.
The main task of BusinessEurope is to ensure that companies’ interests are represented and defended.
The business forum, which Trade and Industry Minister Rob Davies is set to address, is being held ahead of the SA-EU Summit on Thursday, 18 July. - SAnews.gov.za
