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President and Mrs Thabo Mbeki will today - Sunday 28 December 2003 - arrive in Bahamas ahead of a State Visit.

President Mbeki is accompanied by the Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma, and a delegation of senior government officials

During the visit, President Mbeki will pay a courtesy call on Governor General Dame Ivy Dumont; Prime Minister Perry Christie on bilateral and regional political and economic relations. The President and his delegation are also expected to hold further discussions with members of the opposition political parties; heads of religious denominations of the Bahamas Christian Council, civic and business leaders.

The Bahamas with its financial strength, remains an important role-player in the Caribbean, especially within the context of Caricom and its present focus on the establishment of a Single Market and the Caribbean Court of Justice.

The visit is aimed at forging closer relations with the countries of the Caribbean Community (Caricom) whilst strengthening and consolidating bilateral political and economic relations between South Africa and the Bahamas.

The Bahamas played a prominent role in the South African liberation struggle, vis-à-vis, the adoption of the Nassau Understanding and the establishment of The Eminent Persons Group during the Commonwealth Heads of Government meeting held in 1985 in The Bahamas.

South Africa and The Bahamas established diplomatic relations on 28 July 1994 when South Africa's non-resident High Commissioner, Ms T Luthuli-Gcabashe, presented her credentials in Nassau on 7 April 1999.

South African corporate interests made a significant impact on the Bahamian tourism industry when the South African hotel magnate Sol Kerzner developed the internationally renowned Atlantis Resort. This was a substantial investment, which also contributed to the creation of employment, which was welcomed by government and opposition parties. Kerzner recently concluded a US$ 6 billion Phase III investment for renovation and expansion to the Atlantis Resort.

The Bahamian economy is heavily dependent on tourism and offshore banking. The tourism sector accounts for approximately 40-60% of the gross domestic product and employs approximately half of the labour force. It is estimated that the financial services sector contributes to 15 % of gross domestic product. In 2001, 418 banking institutions, representing 36 nations were licensed to do business in The Bahamas. In addition, 580 mutual funds and 60 insurance companies (2001) were also operating out of The Bahamas.

Relations with the Caricom region

South African exports to the Caricom region have grown consistently over recent years to more than R500 million. Excellent co-operation exists in the multilateral context with countries of the region, especially within the framework of the Lomè Convention.

Background on Bahamas economy

The Bahamian economy is considered as one of the stronger Caribbean economies. Bahamian industries include: tourism, banking, cement, oil refining and transshipment, salt, rum, aragonite and pharmaceuticals. Major exports include: fish and crawfish, rum, salt, chemicals, fruit and vegetables. Major imports include machinery and transport equipment, mineral fuels, food and live animals (2000).

BACKGROUND

The Bahamas achieved independence from Britain on 10 July 1973 and will this year celebrate its 30th year of independence.

President Thabo Mbeki undertook a State Visit to Jamaica and to the Caricom Conference in Montego Bay from 29 June - 2 July 2003. The Minister of Foreign Affairs, Nkosazana Dlamini Zuma; the Minister of Public Enterprises and Acting Minister of Transport, Jeffrey Radebe, and senior government officials accompanied President Mbeki on the visit.

During this visit President Mbeki held bilateral discussions with Caricom heads of government, including Prime Minister Perry G. Christie of The Bahamas, and delivered the keynote address at the Caricom Heads of Government Summit in Montego Bay on 2 July 2003.

Caricom decided to take a significant step in the development of its relations with Africa by opening a resident diplomatic mission in Pretoria.

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Issued by Ronnie Mamoepa, 091 242 422 5595, Department of Foreign Affairs, 28 December 2003