The last leg of the France-South Africa business forum, as part of French President Nicolas Sarkozy’s historic state visit to Africa’s economic powerhouse, will resume in Cape Town on Friday.

The two-day initiative, aimed at strengthening economic ties and cooperation between the two countries, started on Thursday with over 200 South African and French business executives attending the forum.

Addressing delegates at the meeting, Business Unity South Africa (Busa) President Patrice Motsepe said that growth in economic relations between France and South Africa had “huge potential”.

In the last financial year, France was South Africa's fourth largest trading partner in Africa with bilateral trade between the two countries amounting to R26-billion in 2006/07. Similarly, over 170 French-owned companies or subsidiaries operated in South Africa, employing more than 30 000 people across the country.

However, Motsepe conceded that South Africa had a desire to become France’s largest trading partner in Africa, which would require the facilitation of many new trade and investment deals between the two countries through events such as the South Africa-France business forum.

Leader of the French business delegation and president of nuclear group Areva Anne Lauvergeon reciprocated this ideal and stated that French business shared the ambition to increase trade and investment between the two countries.

Four key areas were highlighted during the first day of the forum as being of vital importance to the growth in trade and investment between South Africa and France. These included energy, skills, transport and tourism. In this regard, both French and South African business executives addressed delegates highlighting opportunities for French investment in the four sectors.

In terms of energy, which was emphasised as a key sector, South Africa’s Necsa CEO Rob Adams explained that the country would particularly welcome French investment in local nuclear technology. This investment would assist in easing South Africa’s dependence on coal-generated electricity and take advantage of the global nuclear renaissance.

Motsepe elaborated that the discussions, focusing on energy, skills, tourism and transport were a prelude to Friday’s engagement between South Africa and France’s heads of state whereby a number of agreements would be signed.

To this extent, the contract between Alstom and Eskom would be signed in the presence of President Thabo Mbeki and President Sarkozy, as well as a memorandum of understanding (MOU) between Agence Francaise de Developpement and Eskom regarding the financing of a wind farm project, and an MOU between Areva and Jipsa regarding skills development.

As well as strengthening economic ties, the purpose of the business forum was to provide executives from both countries an opportunity to exchange ideas and explore future business deals.