South African President Thabo Mbeki has arrived in the Bahamas as part of a state visit aimed at forging closer relations with the countries of the Caribbean Community (Caricom), as well as strengthening and consolidating bilateral political and economic relations between South Africa and the Bahamas.
Foreign Affairs spokesperson Ronnie Mamoepa said on Monday the president is accompanied by the Minister of Foreign Affairs, Nkosazana Dlamini-Zuma, and a delegation of senior government officials.
During the visit, Mbeki will pay a courtesy call on Governor General Dame Ivy Dumont, as well as Prime Minister Perry Christie, to discuss bilateral and regional political and economic relations. The president and his delegation is also expected to hold further discussions with members of opposition political parties, heads of religious denominations of the Bahamas Christian Council, civic and business leaders.
Mamoepa said that the Bahamas, with its financial strength, remains an important role player in the Caribbean, especially within the context of Caricom and its present focus on the establishment of a single market and the Caribbean Court of Justice.
The Bahamas played a prominent role in the South African liberation struggle, vis-Ã -vis the adoption of the Nassau Understanding and the establishment of the Eminent Persons Group during the Commonwealth Heads of Government meeting held in 1985 in the Bahamas.
South Africa and the Bahamas established diplomatic relations on July 28 1994. South African corporate interests have made a significant impact on the Bahamian tourism industry with development by South African hotel magnate, Sol Kerzner, of the internationally renowned Atlantis Resort on the island.
This represented a substantial investment that also contributed to the creation of employment. Kerzner recently concluded a $6-billion investment for renovation and expansion of the Atlantis Resort.
The Bahamian economy is heavily dependent on tourism and offshore banking. The tourism sector accounts for between 40% and 60% of the gross domestic product and employs approximately half of the labour force.
It is estimated that the financial services sector contributes to 15% of gross domestic product. In 2001, 418 banking institutions, representing 36 nations, were licensed to do business in the Bahamas. In addition, 580 mutual funds and 60 insurance companies (2001) were also operating out of the Bahamas.
According to Mamoepa, South African exports to the Caricom region have grown consistently over recent years to more than R500-million rand. Excellent cooperation exists in the multilateral context with countries of the region, especially within the framework of the Lomè Convention. — I-Net Bridge