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Monday to Tuesday, 12 to 13 December 2005

Tshwane – President Mbeki and Mrs Zanele Mbeki, supported by Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma ,will pay a State Visit to Uganda scheduled from Monday to Tuesday, 12 to 13 December 2005.

The Presidential delegation will include Jeff Radebe, senior government and business executives including those exploring future business opportunities in Uganda. The State Visit to Uganda falls within the context of South Africa’s commitment to consolidate and strengthen political and economic relations between South Africa and all African countries including Uganda.

The visit will accord the two leaders an opportunity to review progress on matters of peace and security in the region. President Mbeki will further use this opportunity to reiterate South Africa’s commitment and support for Ugandan leadership in the Intergovernmental Authority on Development (IGAD) peace, security and developmental processes in the sub-region.

They are also expected to review matters of peace and security in the African continent focusing on the Sudan, Somalia, Côte d’Ivoire, Burundi and the Democratic Republic of Congo. The state visit will also present an excellent opportunity to formalise and sign numerous bilateral agreements, which intend to foster and strengthen co-operation between the two countries. During the visit President Mbeki will address the Ugandan Parliament and use the occasion to reiterate South African support for the political reform process in Uganda.

Bilateral Economic Relations

South Africa is currently the first of the top three sources of Foreign Direct Investment in Uganda including the United Kingdom (UK) and Kenya. Its nearly 50 companies operating in Uganda are a substantial source of job creation and contributor to the tax base. South African companies based in Uganda also contribute substantially to the Ugandan tax base and so express a solid and long-term faith in Uganda.

Of the 10 top taxpaying companies in Uganda, five have links with South Africa, including MTN as the largest tax paying company in Uganda. The largest bank in Uganda is Standard Bank Investment Corporation, the largest bottler is South African Bottling (Century Bottling). SAB-Miller holds nearly 50% of the local beer market whilst ESKOM co-manages the national power network. Shoprite, Game Stores and Metro Cash and Carry dominate the retail market and other companies such as PG Bison, CTM Tiles are gaining prominence in the building industry.

South African Exports to Uganda: 2002 to March 2005
Mar 2005: R48 493
2004: R558 381
2003: R478 967
2002: R612 891

Ugandan Exports to South Africa: 2002 to March 2005
Mar 2005: R895
2004: R36 831
2003: R36 072
2002: R20 689

The exponential growth in investment by South African companies has resulted in the creation of employment, technology and skills transfer, increase in tax revenue and a concomitant increase in opportunities for a diverse group of companies operating in Uganda, the benefits of which are still confined to the rural areas. The prominence of the South Africa/Uganda Business Association is testimony to the strong role played by the South African business community in promoting corporate responsibility programmes and facilitating business linkages.

Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
11 December 2005