South Africa wants to treble two-way trade with India to $12-billion by 2010, Deputy President Phumzile Mlambo-Ngcuka said on Monday as she invited Indian firms to invest in the African nation’s infrastructure and IT sectors.
India’s exports to South Africa grew by 58% to $1,55-billion in the fiscal year to March 2006, while imports were up by 11,44% to $2,45-billion, government data shows.
The two-way trade between the two countries amounted to $4-billion during 2005/06. ”I ask businessmen to set a target of $12-billion by 2010,” Mlambo-Ngcuka told a business conference.
India is already negotiating a preferential trade agreement with member nations of the South African Customs Union (Sacu) — a regional trade block comprising of South Africa, Botswana, Lesotho, Namibia and Swaziland.
Mlambo-Ngcuka urged Indian firms to forge joint ventures with South African firms, especially in the infrastructure sector and also in food processing, IT, hospitality and textiles.
”We will require $55-billion investments in infrastructure in the next three to five years,” she said, outlining South Africa’s plans to boost economic growth to 6% annually from 2010 onwards from the present target of 4,5%.
One of India’s leading Indian business houses, Tata group, is already eyeing major investments in South Africa.
Tata Motors is stepping up production at its bus-building facility in South Africa, while Tata Steel plans to build a ferrochrome smelter there and is looking for coal mines.
India exports farm, dairy products, chemicals, medicines, textiles, electronic goods and vehicle parts to South Africa and imports mainly pearls, precious stones, iron and steel. — Reuters