Dec 03, 2010
SA aims to expand trade with Zambia by $250m in 2011Back
Johannesburg|Africa|Business Unity South Africa|Copper|Environment|Resources|Water|Africa|South Africa|Zambia|USD|Energy|Intraregional Infrastructure|Manufacturing|Mining|Elizabeth Thabethe|Felix Mutati|Infrastructure|Jacob Zuma|Jerry Vilakazi|Power|Riaan Le Roux|Rupiah Banda|Water|Communication Technology
© Reuse this
But South Africa’s Department of Trade and Industry indicated at the weekend that efforts were being made to recoup the losses and expand trade relations further.
Acting deputy director-general Riaan le Roux said that a target had been set to grow bilateral trade by about 25%, or $250-million, in 2011.
South Africa remained Zambia’s principal trading partner in the Southern Africa Development Community (SADC), while Zambia is South Africa’s third-largest trading partner in the region.
Speaking at a Zambia-South Africa business forum in Johannesburg, Business Unity South Africa CEO Jerry Vilakazi lamented the fact that intra-African trade remained low at around 10% of total trade. This, owing to insufficient intraregional infrastructure, which remained a major obstacle for trade between African countries.
President Jacob Zuma concurred, saying that it had been decided by the African Union to develop the so-called ‘North-South corridor’, which, together with regional integration efforts, would facilitate trade and physical connectivity between countries.
His Zambian counterpart Rupiah Banda emphasised the progress being made in that country to reduce the burden on businesses.
Zambia was recently identified in a World Bank survey as one of the ‘top ten reformers’ in easing the business environment for investors. Currently, a business can be registered in one day, compared with South Africa where it still takes seven days.
Zambia was also delivering growth rates that were above the continent's average. The copper-rich country was expected to expand by 6,6% this year, and by 6,4% in 2011.
However, Banda said that this was still not high enough, and that Zambia hoped to boost its growth rate to between 8% and 10% between 2011 and 2030.
“By 2030, Zambia wants to be a middle-income country, and we have been putting all the necessary policies and incentives in place to achieve this.”
The country, which still generates most of its income from the mining industry, would also be pursuing diversification programmes.
Commerce, Trade and Industry Minister Felix Mutati said that a strong focus would be given to value-added mining, and in diversifying the country’s economy into sectors such as energy, tourism, agroprocessing, manufacturing, and information and communication technology.
The centrally located country is also host to almost 40% of surface and underground water resources in the SADC region, which created significant opportunity for the development of hydroelectricity capacity.
Mutati noted that this could be a key area for collaboration between the two countries, particularly give the power shortages in the region.
Meanwhile, South Africa’s Trade and Industry Deputy Minister Elizabeth Thabethe said that nurturing and stimulating small and medium-sized enterprise (SME) trade would also be key to improving bilateral trade relations.
She noted that South Africa companies were among Zambia’s biggest investors, having invested $1,4-billion in the country between 1991 and 2010, mostly in the resources environment.
But she added that SMEs still had a significant role to play in the “intertwined” destinies of the two countries.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Video News
Updated 4 hours ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 4 hours ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.