President Jacob Zuma will lead South African Ministers and a business delegation on an official State visit to France from July 11 to 12.

The key objective for the visit would be to promote South Africa’s exports and to attract investment in the automotive, ship-building, aquaculture and energy sectors.

Another key objective was the signing of a declaration of intent between South African investment and promotion facilitator Invest SA and Business France, as well as an agreement between the Industrial Development Corporation and its French counterparts on cooperation on industrial development.
 
South African imports from France increased to R24.5-billion in 2015 from R23.9-billion in 2014.

South Africa had a deficit trade balance with France that stood at R15.3-billion in 2015.

South Africa’s total exports contracted by 3.7% in 2015 to R9.1-billion from R9.5-billion in 2014.
 
France was the fourth-biggest trading partner in the European Union after Germany, the UK and Italy. As an import partner, it was South Africa’s eleventh trading partner and its twenty-seventh export partner.
 
South Africa`s export basket into France was dominated by products that included vehicles, machinery, nuclear reactors, boilers, mineral fuels, oils and distillation products.

South Africa’s exports of aircraft, spacecraft and parts to France increased from R400-million in 2013 to R1-billion in 2015, increasing its share of total exports to France from 4.4% in 2013 to 11% in 2014.

However, exports were concentrated in a few products, therefore South Africa could benefit from its trade with France if the country diversified its exports and increased its production of high-value-added products from the manufacturing sector.
 
There was potential to increase South African exports of agriculture and agroprocessed products into the French market, including some manufactured products such as diesel-powered trucks, wheeled tractors, lead-acid accumulators, vacuum cleaners and pneumatic tyres.
  
South Africa was France’s fifth-largest export partner in Africa after Algeria, Morocco, Tunisia and Egypt.
 
On the investment side, between January 2011 and April 2016, a total of 30 foreign direct investment projects were recorded.

These projects represented a total capital investment of R16.85-billion, which was an average investment of about R561-million per project. During the period, a total of 2 858 jobs were created.

French capital investments into South Africa in 2015 increased by 66.8% year-on-year from R1.82-billion in 2014 to R5.49- billion in 2015.

Renewable energy, chemicals and the information technology services sectors received the biggest capital investments respectively.

There were more than 365 French companies operating in South Africa, employing 36 000 South African employees.