Dec 03, 2010
SA aims to expand trade with Zambia by $250m in 2011Back
© 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)
Updated 50 minutes ago Following the conclusion of its two-year “Vision 2015” strategy, JSE-listed Famous Brands would now embark on a five-year strategy set to heighten the competitiveness of the food services business. The group, which recorded its fourteenth consecutive year of growth...
Updated 52 minutes ago When Deputy President Cyril Ramaphosa announced reduced e-toll tariffs last week‚ he said a review panel “found that there’s general acceptance of the user-pay principle”. But a study conducted by Ipsos prior to the announcement of the new e-toll dispensation‚ found...
Updated 2 hours 6 minutes ago In this context Creamer Media’s Gold 2015 report reviews the global gold market and gold companies that have operations in Africa. It particularly focuses on the South African gold sector, including labour issues and electricity shortages, as well as prospects for...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...