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President Thabo Mbeki will, today - Tuesday, 26 August 2003 - depart from Dar es Salaam, Tanzania, for Pemba, Mozambique, where he will together with President Joaquim Chissano of Mozambique co-chair the SA-Mozambique Heads of State Economic Bilateral meeting in Pemba, Mozambique, on Wednesday, 27 August 2003.

President Mbeki's delegation includes Ministers Valli Moosa; Thoko Didiza; Alec Erwin; Jeff Radebe and Deputy Minister Aziz Pahad

Issues to be discussed include:

* Labour and migratory issues
* Transport and communication issues, which includes the Maputo Airport Concessioning and Sena Railway Line
* Energy issues, which includes the Sasol Gas Pipeline Project and the Northern Mozambique Power Development Initiative
* Environment and Tourism Spatial Development Initiatives, which include the Greater Limpopo Transfrontier Park
* Trade and industry spatial development initiatives - Beira, Zambezi and Nacala Development Corridors
* Trade and industry issues, which include the investment mission in Mozambique and economic co-operation agreement.

BACKGROUND TO BILATERAL RELATIONS

The close bilateral relations between South Africa and Mozambique are characterised by a constant high level of interaction on presidential, ministerial, Directors-General, officials, as well as parliamentary level in all the spheres of co-operation. In addition, the RSA/Mozambique Joint Permanent Commission for Co-operation (JPCC) successfully held its second meeting on 4 and 5 December 2001 in Pretoria. Since 1994, South Africa and Mozambique have entered into more than 20 Agreements; Protocols, as well as Memoranda of Understanding.

The Joint Permanent Commission for Co-operation (JPCC)

The JPCC deliberates at senior official level on progress made with the implementation of the technical component of the various bilateral co-operation initiatives existing between the two countries and to report the details of such progress to the Heads of State Economic Bilateral meetings.

The Second Joint Permanent Commission for co-operation meeting, comprised the following sub-committees:
* Defence, Security, Migration, Labour, Education, Health and Civil Aviation;
* Foreign Affairs, Justice, Public Administration, Fisheries and Social Action;
* Trade, Industry, Banking, Finance, Investment, Agriculture/Rural development, Technical Co-operation;
* Transport and Communications, Public Works and Tourism, Environment, Meteorology, Water Affairs and Forestry matters.

The next JPCC is due to take place during the third quarter of 2003.

Trade Relations

South Africa and Mozambique's economic relationship is the strongest in the southern African region. Current investment by South Africa in Mozambique totals approximately USD 4 billion. Trade between the two countries is also on the increase, with 57% of Mozambique's imports emanating from South Africa (18% of South Africa's export to Africa). About 26% of Mozambique's exports are destined for South Africa. These figures render South Africa Mozambique's largest foreign direct investor and trade partner.

Development Projects

The Industrial Development Corporation (IDC) has been utilised by the South African Government as the primary catalyst for South African investment in Mozambique.

To date, the IDC has approved funding for 10 projects geographically spread throughout Mozambique and is currently considering/investigating 6 additional projects in that country. The spread ranges from mining and mineral beneficiation, agriculture, tourism, chemicals, forestry, transport infrastructure to energy.

Natural Gas Pipeline Project

The South African Natural Gas Pipeline Project is proceeding well and is on schedule. The overall progress is 78% actual completion against 73% planned completion. Arrival of the gas in Secunda, South Africa, is scheduled for February 2004.

Sasol is highly valued and respected in Mozambique. The company's operations and social development projects are considered by the Mozambican Government as a sterling example of corporate citizenship.

Great Limpopo Transfrontier Park

Good progress has been made on the projects identified as part of the R40 million allocated by the South African Government for infrastructure development on the South African side of the Great Limpopo Transfrontier Park. The 20km Kruger National Park Eastern Boundary fence was dropped on 15 August following a Ministerial Committee decision on 24 April 2003. South Africa is continuing with the translocation of animals from the Kruger National Park to the Wildlife Sanctuary in the Limpopo National Park.

For further information contact: Ronnie Mamoepa on 082 990 4853, Bheki Khumalo on 083 256 9133, Nomfanelo Kota on 082 377 7208, David Hlabane on 082 561 9428

Issued by Department of Foreign Affairs

26 August 2003