President Cyril Ramaphosa has called for the expansion of bilateral trade and investment between South Africa and Angola.
“During our official engagement, we reached a shared understanding that significant opportunities exist to further strengthen and expand our bilateral trade and investment relations,” President Ramaphosa said on Thursday.
The President made the remark during the South Africa-Angola Business Forum held at the CSIR International Conventional Centre in Pretoria. This as he hosted his Angolan counterpart, President João Manuel Gonçalves Lourenço, who was in South Africa for a State Visit at the Union Buildings earlier in the day.
READ | SA, Angola deepen ties
Speaking at the inaugural South Africa-Angola Business Forum, President Ramaphosa said it was heartening and encouraging to see a broad representation of business from the two countries.
“This is in itself a solid demonstration of confidence; confidence in the strength of the region’s two largest economies; confidence in the potential that exists for deepening trade and investment ties; confidence that the governments of both countries are taking the necessary steps to ensure that the business operating environment is improved so investments can be safe and secured,” the President explained.
The first citizen said in his engagements with President Lourenço and the respective delegations, a wide array of critical political, economic and social issues of mutual concern were discussed.
More than 20 South African entities are already investing in Angola in a range of sectors including rail, agriculture, industrial parks, oil refineries, manufacturing, IT, financial services and logistics.
“By way of example, the Development Bank of Southern Africa is financing port development, railway rehabilitation, oil and gas infrastructure and renewable energy development in Angola.
“The Export Credit Insurance Corporation of South Africa has also maintained a healthy pipeline in Angola in infrastructure development, and the Industrial Development Corporation is involved in financing the Cabinda Oil Refinery and the Cabinda phosphate project. We would like to see substantially more Angolan FDI [foreign direct investment] inflows into the South African economy,” said President Ramaphosa.
In addition, between 2003 and 2024, “only a handful” of Angolan companies were investing in South Africa in communications, financial services and the metal sector.
With respect to trade, though South Africa’s exports to Angola have grown by approximately 11% since 2019, they account for just 3% of Angola’s total imports.
South Africa’s imports from Angola have declined by some 19% since 2019.
“Casting the net wider presents immense possibilities for improving both trade and investment flows. South Africa is pursuing an ambitious economic development agenda based on export-led industrialisation.
“We seek to revitalise our industrial base, modernise our infrastructure network, and strengthen logistics and supply chain connectivity with the rest of the continent,” President Ramaphosa said, noting that this presents opportunities for cooperation in various sectors such as agriculture and agro-processing, energy and rail rolling stock.
Energy and infrastructure development
On energy matters, the President said the rapid growth of key clean energy manufacturing industries, as part of the global transition to a low-carbon economy, is an area that must be explored urgently.
“The global energy transition offers new opportunities to upgrade and diversify into technology-intensive global value chains. The transition to a low-carbon economy therefore presents scope for collaboration around critical minerals, specifically with regards to value addition and beneficiation.”
The President said infrastructure development that unlocks intra-Africa trade is a priority.
“We must build on the work already underway on the Lobito Corridor to create sustainable industries in the region. South Africa is ready to partner with Angola in the development of strategic corridors, including the Central, North and South Corridors, with the aim of transforming them into dynamic economic infrastructure projects that can promote growth.”
Cutting red tape
President Ramaphosa called on business and government to use the forum proactively.
“As government and business, we must use this forum to engage proactively around not just the possibilities that exist, but also how to resolve the challenges in the business operating environment. Companies in both Angola and South Africa have challenges that make it difficult to do business.
“Stringent business visa requirements, high export costs, onerous import processes, taxation issues and bureaucratic red tape are just some of these.
“We must be able to emerge from this forum with a clear understanding of what the main challenges are and what steps will be taken to facilitate greater market access on both sides.
“Promoting greater economic growth for the benefit of Angola and South Africa necessitates that we are agile, adaptable and responsive as both the public and private sectors,” he said. – SAnews.gov.za
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