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President Thabo Mbeki has today, Sunday, 12 May 2002, arrived in Molde on the West Coast of Norway to attend the SA-Nordic Summit.

The President is accompanied by the Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma, the Director-General in the Office of the President, Reverend Chikane, Professor Wiseman Nkhulu and Foreign Affairs Deputy Director-General Ndumiso Ntshinga.

The Summit will consist of a joint meeting between President Mbeki and Prime Minister Fogh Anders Rasmussen of Denmark, Prime Minister Paavo Lipponen of Finland, Prime Minister David Oddsson of Iceland, Prime Minister Kjell Bondevik of Norway and Prime Minister Goran Persson of Sweden.

Agenda items will include the transition from the Organisation of African Unity to the African Union; an assessment of the progress on NEPAD and Nordic and international support for it; South African - Nordic relations; regional African issues; the World Summit on Sustainable Development, etc.

There will then be an opportunity for bilateral discussions between President Mbeki and the Prime Ministers of Denmark, Finland, Iceland and Sweden. These discussions are important as the Nordic countries have much to contribute individually in terms of investment, private sector engagement, technology transfers and financial support.

In June 2000, the first South African - Nordic Summit took place in Skagen, Denmark, which was attended by President Mbeki, the Prime Ministers of Denmark, Finland, Norway and Sweden and the Foreign Minister of Iceland.

The Skagen Declaration, released during the Summit, supported the new African agenda as promoted by President Mbeki. It was an important step in developing international consensus around the international development goals ahead of the UN Millennium Summit and the need to address Africa's particular needs and challenges.

The Declaration called for a sustained involvement by the international community in a partnership with Africa to address poverty and marginalisation. The issues addressed in the Declaration continue to be NEPAD priorities, e.g. the need to review the global economic system and financial architecture, and issues relating to capital flows, FDI, market access, technology transfers, the digital divide, enhanced debt relief, peace, security and stability, health and education.

The Nordic countries, which have traditionally been reliable partners in support for the African continent, are amongst the foremost donor states currently supporting development efforts on the continent. Following the Summit they provided financial support during the development of the MAP, the merger process culminating in the New African Initiative and the setting up of the NEPAD Secretariat.

The SA-Nordic Summit also takes place in the context of the acceptance of the invitation by Prime Minister Bondevik for President Mbeki to pay an official visit to Norway on Monday, 13 May 2002. This will take place in Oslo and will include an audience with His Majesty King Harald V; bilateral political discussions with Prime Minister Bondevik; a meeting with the Vice President of the Norwegian Parliament; an address on NEPAD at the University of Oslo; and a meeting at the UNDP Governance Office.

BACKGROUND

SOUTH AFRICAN - NORDIC SUMMIT AND OFFICIAL VISIT TO NORWAY, 12 AND 13 MAY 2002

In June 2000 the first South African - Nordic Summit took place in Skagen, Denmark, which was attended by President Mbeki, the Prime Ministers of Denmark, Finland, Norway and Sweden and the Foreign Minister of Iceland.

During the Summit the Skagen Declaration was issued, the following being the salient points:

* The ties between South Africa and the Nordic countries are strengthening;

* Note was taken of the challenges facing Africa and the "new sense of confidence and responsibility" was welcomed;

* It was agreed that Africa's challenges call for extraordinary, sustained intervention and co-operation amongst Africans and in partnership with the international community;

* The Nordic Prime Ministers expressed support for President Mbeki's Africa initiative;

* South Africa welcomed the willingness of the Nordic countries to work towards more favourable terms of trade for Africa in WTO negotiations;

* Special mention was made concerning informational technology and specifically Africa's participation;

* It was agreed the Nordic countries would make IT as a major part of future development co-operation with South Africa; and

* Emphasis was placed on the importance of peace and security while focussing on a comprehensive strategy for conflict resolution and prevention was acknowledged.

RELATIONS WITH SOUTH AFRICA

Political Relations:

Norway maintains excellent relations with South Africa. It was a staunch supporter of the liberation movements during the struggle for democracy in South Africa. The thrust of the Norwegian policy towards South Africa during the apartheid years was generally to effect fundamental change through boycotts and withdrawal of business and trade relations. Mr Mandela visited Norway three times before becoming President, including the presentation of the Nobel Peace Prize in 1993. He also paid a State Visit to Norway in March 1999. These visits have been particularly important, taking into account the importance of Norway in the struggle against apartheid.

South Africa opened a Consulate General in Oslo in September 1988 while Norway already had a Consulate General in Cape Town. On 1 January 1992, diplomatic relations were upgraded to ambassadorial level and Norway opened an Embassy in South Africa.

In February 1996, Prime Minister Gro Harlem Brundtland paid an official visit to South Africa and in November 1996 then Deputy President Mbeki visited Norway. A State Visit to South Africa by King Harald V and Queen Sonya took place during February 1998. During August 2001, Crown Prince Haakon visited South Africa to raise funds to combat HIV/AIDS.

Bondevik visit:

Prime Minister of Norway, Mr Kjell Bondevik, paid an official visit to South Africa from 10 to 14 February 2000. His delegation consisted of over 70 persons including the Minister for International Development and Human Rights, Ms Hilda Frafjord-Johnson, and the Deputy Minister of Trade and Industry, Ms Harriet Berg, senior government officials, a large business delegation and media representatives.

The main events during the visit were separate economic and political bilateral discussions between President Mbeki and Prime Minister Bondevik; bilateral discussions between Deputy President Zuma and the Prime Minister; a South Africa-Norway Business Seminar with workshops on Energy, Registers, Telecommunications, Water Supply and Sanitation; the signing of a Letter of Intent extending environmental cooperation; the signing of an arrangement for Norwegian funding towards the destruction of surplus and redundant SANDF small firearms; the opening of a housing project in Newtown, Johannesburg; the attendance of a service at the former Norwegian Lutheran Missionary Station at Umpumolo; and a visit to the Eshowe Museum.

ECONOMIC RELATIONS

Trade between South Africa and Norway:

Fundamental to trade relations between South Africa and Norway is the Generalised System of Preferences (GSP) for the import of goods from developing countries, which was extended by Norway to South Africa on 6 May 1994.

TRADE FIGURES

South African imports from Norway:

1997. R129 000 000
1998. R148 076 000
1999. R215 702 000
2000. R212 997 000
2001. R231 000 000

South African exports to Norway:

1997. R683 955 000
1998. R237 708 000
1999. R162 893 000
2000. R176 699 000
2001. R202 132 000

(Source for import and export figures: South African Revenue Service)

As part of the Bondevik visit, a Norway - South Africa Business Seminar was held in Sandton on 11 February 2000. Workshops on Energy, Registry, Telecommunications as well as Water Supply and Sanitation were held. Representatives from more than 60 Norwegian companies attended the seminar. Prime Minister Bondevik said that he hoped to see increased co-operation between Norwegian and South African companies beyond the R1 billion already invested in South Africa since 1994. He said that South Africa fulfils a strategic role on the African continent and forms the gateway to markets in the Southern African Development Community with 180 million people.

Norwegian Investments:

An increasing number of companies are planning to expand their operations through increased investments and technology. South Africa is seen as a growth point into the rest of Sub-Saharan Africa. Norwegian companies have shown an interest in joint ventures, expansion of existing operations, buying into local companies, as well as the exploration of small, micro and medium enterprises (SMMEs). Through the matchmaking programme, the Norwegians are willing to assist South African SMMEs that have viable business plans in joint venture operations. NORAD set up the Matchmaking Programme in March 1997, aimed at finding South African partners for small to medium-sized Norwegian companies. The programme, which is the Norwegian Government's prime investment promotion tool, is making good progress. Over 58 Norwegian companies are currently looking for SMME partners in South Africa.

During 1997/98, Norway was the largest Nordic investor in South Africa, with investments of over NOK 500 million.

A Norwegian-South African Chamber of Commerce (NSACCI) was established during 1997, and continues to expand. The Chamber currently has 60 members. The Embassy cooperates closely with the Chamber regarding the distribution of information, and briefings on economic developments in South Africa. The Chamber is an important structure for facilitating trade and investment between Norway and South Africa. Its formation and subsequent growth indicates the strong positive trend in economic relations between the countries. The Norwegian business community appreciates the business-friendly approach followed by the South African government.

Tourism:

The vast potential for tourists from Norway must be exploited further. An important factor is that SAA will restart direct flights to Copenhagen in late 2002. There is also the possibility of direct charter flights between Norway and South Africa during the Norwegian summer holiday season. It is expected that this will further stimulate tourism to South Africa, as the Nordic region is already one of the fastest growing tourist markets for South Africa.

The following are the figures of Norwegians visiting South Africa:

1998. 9 604
1999. 10 175
2000. 10 431
2001. 8 989 (Jan-Oct)

Environment:

The contact between the Norwegian Ministry of Environment and the South African Department of Environment and Tourism has been increasing. Co-operation in terms of the Bilateral Development Assistance Programme in the area of environmental affairs is extensive. This includes co-operation around restoring national heritage sites.

Norway continues to support South Africa on matters relating to the Conservation of Antarctic Marine Living Resources (CCAMLR), including illegal fishing within the Exclusive Economic Zone of the Prince Edward Islands.

Prime Minister Bondevik and Minister Valli Moosa signed a Letter of Intent concerning Norwegian Support for joint Environmental Co-operation Projects on 11 February. The letter extends the existing Memorandum of Understanding between the South African Department of Environmental Affairs and Tourism and the Ministry of Environment of the Kingdom of Norway (MoE). The objectives of this extended environmental co-operation are to improve dialogue and co-operation on international and bilateral issues of mutual interest including the establishment of strategic links. The co-operation aims at securing peace, democracy and human rights through sustainable development that will address poverty alleviation and equitable access to environmental resources.

Scientific Research Agreement:

A R35 million research co-operation agreement between South Africa and Norway was signed during December 2001. The signatories were the Norwegian Ambassador, Mr Bech, and Dr Ngubane, Minister of Arts, Culture, Science and Technology.

The groundwork for this agreement was laid in December 1999, when Dr Ngubane had a discussion with former Minister of Education, Research and Church Affairs of Norway, Mr Jon Lilletun. The topic was the need to strengthen relations between the two countries in the area of higher education and research as well as support for the historically disadvantaged institutions in South Africa.

In April 2001, during the Norway - South Africa Seminar on Research Co-operation and Student Exchange, the scientific communities of the two countries met in the presence of representatives of the Norwegian Ministry of Education, Research and Church Affairs and NORAD and DACST and DoE to exchange views on research co-operation. A strong partnership in science and technology and research co-operation between Norway and South Africa would be of lasting benefit to the people of both countries.

Development Cooperation:

Between 1977 and 1994 Norway channelled funds totalling R800 million to South Africa in general aid and through UN agencies. Norway then undertook to supply South Africa with transitional development cooperation for the five-year period 1995 - 1999. The total amount disbursed during the period 1994 - 1999 was R 412 574 000. A new country strategy was then adopted for the period 2000 - 2004. The main areas of cooperation identified were: democratisation and human rights; economic; cultural; education and research. It has been agreed that when the current programme ends in 2004, there be an exit strategy with emphasis on the sustainability programmes and how to build the collaboration further.

During the visit of Prime Minister Bondevik in January 2000, the importance of the development cooperation relations with South Africa was emphasised. It was made clear that this was part of the long-term relations between the two countries.

The Skagen Declaration:

We, the participants of the Nordic-South Africa Summit, consisting of the President of the Republic of South Africa and the Prime Ministers of the Nordic Countries, note with appreciation the ever strengthening ties between South Africa and the Nordic countries, as evidenced by the unique quality of the Nordic-South Africa Summit in Skagen, Denmark, on 8 June 2000.

The Nordic Prime Ministers noted the enormous challenges the African Continent continues to face at the dawn of the 21st Century. They also welcomed the new sense of confidence and responsibility that is emerging in the greater parts of Africa as well as its vast economic potential. It was agreed that whilst Africa advances towards democracy and economic stability, the continent's challenges call for extraordinary, sustained intervention and co-operation, not only among Africans themselves but in partnership with the international community.

In this context, the Nordic Prime Ministers expressed their support for president Mbeki's Africa initiative for rapid economic growth and sustainable development on the African continent.

The Summit agreed on the need to review the global economic system and global financial architecture to ensure that:

* A considerable transfer of resources and capital from the developed to the developing countries in the form of long term capital flow and direct investment takes place;

* The process of globalisation should lead to increased access to markets and technology transfers that work for the benefit of all;

* Debt relief, including HIPC initiatives, is enhanced; and

* There is access to affordable health care and education for all.

The implementation of such a strategy will create new opportunities for rapid economic growth, develop the private sector, create jobs, and will help reduce poverty and curb the spread of infectious diseases on the continent, taking existing initiatives into consideration.

In this regard, the willingness of the Nordic countries to work towards more favourable terms of trade for Africa at the next round of WTO negotiations was welcomed.

We also recognise that Africa must have its share of the Information Technology revolution in order to avoid a further widening of the digital divide. The Nordic Prime Ministers agreed on the need to actively support Africa's participation in the New World Economy. South Africa and the Nordic countries agreed to make IT a major part of their future development cooperation. We agree to work together to place this question high on the international agenda.

South Africa and the Nordic countries stressed that peace and stability are fundamental conditions for sustainable economic growth and social development. The Nordic countries recognise that South Africa continues to play an important role by promoting peace and development in the Southern African region. We, the Nordic Prime Ministers and the President of the Republic of South Africa, therefore acknowledged the importance of focusing on a comprehensive strategy for conflict resolution and prevention in order to expand the frontiers of peace, democracy and development.

Furthermore, South Africa and the Nordic countries agreed on the importance of the follow-up conference to the World Summit for Social Development held in Copenhagen in 1995 which is due to be held in Geneva later this month. It is vital that all parties concerned stand by their commitments and that appropriate actions be taken to reverse a continued marginalisation of major parts of the world population and to eradicate poverty.

We also agreed to give full support to the UN Millennium Summit and welcome the report by the Secretary-General of the UN for the Summit.

Today the President of South Africa and the Prime Ministers of the Nordic countries have agreed to embark on a new comprehensive framework of co-operation at all levels including increased consultations within multilateral fora. (Skagen, Denmark, 8 June 2000)

Contact: Ronnie Mamoepa on 082 990 4853.

Issued by the Department of Foreign Affairs, 12 May 2002