A new five-year memorandum of understanding (MoU) has been signed between Italy’s Emilia-Romagna region and the Gauteng province, and the Ekurhuleni municipality in particular, to enhance trade benefits between the two economic hubs.

The cooperation agreement, signed by Gauteng Premier David Makhura and his Italian counterpart, Emilia-Romagna president Stefano Bonaccini, was aimed at promoting cooperation and trade between the two regions.

The agreement covers a range of focus areas and sectors, including economic development and trade; sport and cultural exchange; energy; agribusiness; manufacturing; education and early childhood development; cooperatives; and the mobilisation of funding and social capital to promote development and competitiveness.

“Italy, being the Eurozone’s fourth-largest economy, remains one of the countries that we are determined to strengthen relations with,” Makhura said.

Gauteng was the recipient of more than nine foreign direct investment projects, valued at €157-million, from Italy between 2006 and 2014.

In 2015, exports from Gauteng to Italy totalled R8.1-billion and included iron and steel, vegetables, machinery and mineral products, while imports from Italy amounted to R19.1-billion, and included vehicles, aircraft and vessels, chemicals, plastics and rubber, and machinery.

“We are of the view that there is significant potential to increase economic activities between Italy and Gauteng,” he said, believing the two regions could obtain great benefits by strengthening relations.

Overall, Italy was South Africa’s eleventh most important trading partner in 2013, when exports to Italy amounted to more than R10-billion and imports to South Africa from Italy amounted to R26-billion.

The agreement was signed on the sidelines of the European House – Ambrosetti-hosted South Africa – Italy Summit, held in Johannesburg on October 18 and 19.