Relations between the UAE and South Africa are on the right track
Strong and visionary leadership has steered South Africa into its current position as a role model for other nations in the African continent. It has also set the pace for the integration of all South Africans in a productive partnership to achieve the common goals of progress and prosperity, says Agnes Nyamande-Pitso, Consul General in Dubai.
Positive outlook
A positive outlook and determination teamed with good policies have also helped strengthen South Africa's position internationally since 1994.
In its 2005 annual country assessment, the International Monetary Fund (IMF) praised South Africa's economic policies, saying that they have resulted in strong growth, low inflation, good fiscal policy management and a marked increase in foreign reserves.
The World Bank's Doing Business 2007 report ranked South Africa among the top 30 countries in the world. The same report also counted the country among the top 10 economies in the world for its protection of investors.
Nyamande-Pitso says such development is also closely linked to the country's close collaboration with neighbouring countries and other nations around the world.
The UAE is one of them. Bilateral relations between the countries are strong since formal diplomatic relations were established following the 1994 visit of Shaikh Hamdan Bin Zayed Al Nahyan, Deputy Prime Minister, who was then also UAE Minister of Foreign Affairs to South Africa.
"The UAE is an important trade partner for South Africa. It holds great potential for South Africa as an export market, and serves as a strategic source of foreign direct investment," says Nyamande-Pitso.
This line of thought also prompted a visit from a high-level South African delegation this February. The team - which visited both Abu Dhabi and Dubai - was here to promote tourism, trade and investment in South Africa.
Referred to as the ‘Next Stop South Africa' campaign, the delegation comprised senior officials from the departments of Environmental Affairs and Tourism, Trade and Industry and members of the International Marketing Council of South Africa (IMC), a private sector organisation responsible for the territory's country branding initiative.
The delegation also emphasised the country's path-breaking ASGISA initiative (Accelerated and Shared Growth Initiative), which is aimed at promoting South Africa's competitive advantage in a number of important sectors such as tourism, business process outsourcing, international call-centres, information and communication technology (ICT), agribusiness and synthetic fuels.
High-level delegation
Another high-level delegation headed by Radhakrishna L Padayachie, Deputy Minister of Communications of South Africa, also visited the UAE in March.
The team was here to observe media-related initiatives such as the Dubai Media City, and to consider its application in South Africa with a view to the country's hosting of the 2010 FIFA Soccer World Cup in 2010.
These delegations follow other high level visits in the past from former President Nelson Mandela and current President Thabo Mbeki, which reflect the importance that South Africa places on its relationship with the UAE.
Dr Dlamini Zuma, Foreign Affairs Minister, and Mandisi Mpahlwa, Minister of Trade and Industry, also visited the UAE in 2005. The latter, accompanied by a trade delegation, signed off on a key agreement related to trade and technical cooperation.
A delegation from Johannesburg Chamber of Commerce and Industry (JCCI) also visited the UAE in 2005.
Both countries have also embarked on a reciprocal skills enhancement exchange programme. South African graduates will be placed in key sectors in the UAE to gain practical experience in these areas. The same principle will apply to candidates from the UAE.
Such significant developments have been partnered by equally promising growth in trade with the UAE. In 2006, South African exports to the UAE touched 3.98 billion rand (Dh2.04 billion).
"South African exports to the UAE have experienced an annual growth of nearly 40 per cent. The UAE became South Africa's 22nd largest export destination in 2006, up by two notches from 2005," says the Consul General.
This rise in demand for South African products can be linked to a focused marketing strategy. "Our aim has been to successfully market the high quality products South Africa is known for whilst being competitive," says Nyamande-Pitso.
According to the Consul General, some of the primary South African exports to the UAE include machinery and mechanical appliances (17.6 per cent in total exports), base metals and related articles (17.2 per cent share in total exports).
Other items include chemical products (15.3 per cent in total experts), mineral products (13.4 per cent in total exports), vegetable products (10.2 per cent in total exports) and prepared foodstuffs, beverages, spirits and vinegar (six per cent in total exports). Imports from the UAE in 2006 touched 3.92 billion rand (Dh2.01 billion).
According to Nyamande-Pitso UAE exports to South Africa have experienced an annual growth of nearly 50 per cent.
"This is a result of the increase in exports of mineral products (petroleum and petroleum-related products), which comprise a little more than 80 per cent of South Africa's imports from the UAE. In value terms 3.2 billion rand (Dh1.65 billion) comprises petroleum and related products."
Export products
Other products that are exported from the UAE to South Africa include machinery and mechanical appliances, plastics and rubber and related articles, articles made from stone, plaster and cement and asbestos.
In addition to South African products, companies from the ‘Rainbow Nation' are also involved in a number of sectors in the UAE. Nyamande-Pitso says that there are more than 100 South African companies present in the region.
They include construction and engineering companies such as Murray and Roberts, ALEC - Al Jaber LEGT Engineering and Contracting and Africon Engineering P. Ltd.; food outlets such as Debonairs Pizza, Nando's UAE and The Meat Co; financial institutions such as Standard Bank London; and South Africa's national carrier - South African Airways.
The South African Business Council in the UAE (SABCo) also plays an important role in promoting trade and investment between the UAE and South Africa by encouraging direct contact between business people from both countries.
The UAE is also investing in South Africa, especially in sectors such as hospitality. "Companies that have invested in this sector include Dubai-based Istithmar and UK-based London & Regional Properties," says the Consul General.
These companies won their bid to acquire South Africa's most-visited property and leisure development, the Victoria and Alfred Waterfront in Cape Town.
This mixed-use prime waterfront real estate development comprises world-class hotels including Sun International's Table Bay Hotel and The Cape Grace, luxury apartments and commercial spaces, and a fishing port and marina.
Another boost for South African commerce was the listing of Gold Fields (one of the world's largest gold producers), on the Dubai International Financial Exchange (DIFX). Gold Fields is the first South African and gold company to list on the DIFX, and this is considered an important step in encouraging capital inflows into South Africa.
Tourism
South Africa is also witnessing a growing number of visitors from the Middle East, including the UAE. According to statistics, almost 8.4 million tourists visited South Africa in 2006 - over a million more than in 2005.
Official figures reveal an increase of more than 30,000 more visitors from Asia, Australasia and the Middle East.
The 2010 FIFA World Cup to be held in South Africa will also attract tourists from this region.
The mega event will also highlight the country's central position as an ideal destination for investment and trade, as it is the gateway into a large market of more than 180 million people in the Southern African Development Community (SADC) region.
