South African delegation begins major B2B talks

By Shanuka Tissera

A very determined large business delegation from South Africa landed in Sri Lanka for a five-day tour, geared to heavily increase bilateral trade between the two countries.

Exchanging of the MoU between Minister of Economic Development South Africa Prof. Hlengiwe Buhle Mkhize and Deputy Minister of Economic Development Sri Lanka Lakshman Yapa Abeywardena. Others from left: Progressive Business Forum South Africa Co-Convenor Renir Schoeman, High Commissioner of South Africa Geoffrey Doidge, and President of the Sri Lanka-Africa and Middle East Business Council Samantha Ranatunga – Pic by Lasantha Kumara

The Sri Lanka-South Africa Business Forum took place at the Taj Samudra yesterday and is a joint initiative by the African National Congress – Progressive Business Forum and Sri Lanka-Africa and Middle East Business Council of the Ceylon Chamber of Commerce.

The signing of a MoU between the two parties is to prove the beginning of a new era in diplomacy and trade. The Chief Guest at the business forum was Deputy Minister of Economic Development Lakshman Yapa Abeywardene.

The 30-strong delegation includes specialists mining, construction, logistics, petroleum, IT and agriculture industries and many more. The objective of the South African delegates is to improve trade and communication between Sri Lanka and South Africa.

Both countries are known for their rich history and turbulent times, and both are now looking to ensure that, through increasing trade and bettering diplomatic ties, both lands further prosper.

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Both countries can learn a lot from each other and use each other to grow in many ways.

Co-convenor of the Progressive Business Forum Renier Schoeman noted how warm the welcome to Sri Lanka was. “In my opinion, the Ceylon Chamber of Commerce is one of the most powerful Councils in Asia.”

Of the 30 delegates, only one had visited Sri Lanka before, the journey so far was said to be very well organised and much emphasis was placed on the beauty of this island.

“Today, there is a much wider role for South Africa. We have become the gateway to Africa in many ways and it is known around the world that Africa’s time to blossom is around the corner,” said Schoeman.

He went on to elaborate how the private and public sector must work together efficiently to help alleviate poverty and provide valuable education for all. Positive engagement should be the cornerstone in implementing policies.

The leadership team of this delegation is set to be aligned in terms of the vision they wish to pursue and helping people to increase efficiency should take a greater weighting than profit.

While 1994 saw the end of the conflict in South Africa which has been burnt into the tablets of history, since then S. Africa has experienced tremendous growth and investment from around the world and it is said to have been done by sitting down, opening up and establishing the truth.

“Ideological interest will avoid conflict. We have proven that a reconciliatory approach can bring about peace. Creating a sustainable South Africa is the name of our game and we will always remain committed to helping our people,” said Deputy Minister of Economic Development Prof. Hlengiwe Buhle Mkhize.

A strong network is needed and this delegation which represents powerful companies in South Africa will aim to begin and further strengthen international trade. In November, a delegation from Sri Lanka will visit South Africa which has stated it is looking for investors in mining, water and overall infrastructure development.

According to World Bank data, out of 183 countries, South Africa ranked 35th for Ease of Conducting Business, first in ability to get credit and 10th in the world for protection rights of investors.

Total exports from Sri Lanka to South Africa have increased over the past three years from $ 15.60 million in 2009 to $ 29.63 million in 2011, registering a 90% increase. Total imports from South Africa recorded a value of $ 35.86 million, which is the highest registered during the past five years.

“Sri Lanka stood firmly by the African National Congress’ freedom struggle and we have consistently opposed the policies of apartheid practices by the Government of South Africa. Sri Lanka has extended cooperation and supported all moves and measures initiated by the UN, the NAM and the Commonwealth aimed at the total dismantling of the Apartheid policy,” said Deputy Minister of Economic Development Lakshman Yapa Abeywardene.

South Africa has mainly invested in Sri Lanka in the fields of IT and agriculture. Total FDI from South Africa stood at approximately $ 5 million up to 2011.

The Deputy Minister of Economic Development said that they were looking forward to large FDI from South Africa and currently Sri Lanka is providing favourable conditions for investors.

“It is clear that economic ties between the two countries need to be pursued with renewed vigour if we are to fully reap the benefits. In that respect, South Africa and Sri Lanka have vast untapped potential. Sri Lanka appreciates the economic development achieved by South Africa in the last decade. These achievements brought the South African nation to key player status in the international economic fora. As an emerging economy, South Africa is a member of ‘BRICS,’ which shares approximately 25% of world GDP. Therefore, this is a relationship that should only move forward.”