While the partnership between Brazil and South Africa is on a “solid footing” in terms of political and business relationships, there remains untapped potential in the areas of bilateral trade and investment, Deputy Trade and Industry Minister Elizabeth Thabethe has said.

Speaking at an investment seminar in Sao Paulo, Brazil, on Tuesday, as part of the Investment and Trade Initiative (ITI) organised by South Africa's Department of Trade and Industry (DTI), she asserted that, while both countries boasted globally competitive expertise in several value-adding sectors, this was being shared with global trading partners, but not necessarily with each another.

“As such, we are keen to further enhance bilateral trade by also looking at developing complementary [goods and services] and increasing bilateral sales of value-added goods. It is in the area of value-added trade where substantial returns can be found,” she noted.

The ITI formed part of the DTI’s Export and Investment Promotion Strategy, which focused on targeted high-growth markets with the objective of creating investment and export opportunities for South African companies.

Thabethe said the South African government would, in cooperation with industry, continue to undertake trade missions to Brazil to develop trade and investment opportunities between the two countries.

Addressing the Brazilian business delegation, she described Africa as one of the fastest-growing regions in the world, with a population of close to one-billion, many of whom were young people, presenting a “new frontier” in consumer growth.

“In addition, recent studies indicate that seven of the top ten fastest-growing economies in the world are African countries. This surely positions South Africa as a strategic partner to Brazil,” she highlighted.

South African ambassador to Brazil Mphakama Mbete added that South Africa’s financial market development, as well as its professional services and financial expertise, were globally recognised, with the World Economic Forum recently acknowledging as much in its Global Competitiveness Report 2013-2014.

“For example, the regulation of the Johannesburg Stock Exchange is ranked number one in the world, which is indicative of the country’s strong auditing and reporting standards,” he commented.

Mbete added that most business activities in South Africa were open to international investors and foreign investments, and were treated in the same manner as domestic investments.

“In this regard, there are various incentives, such as export initiative programmes, tax allowances and trade regulations, which provides for a predictable and safe investment environment in South Africa,” he concluded.