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5 March 2008

Pretoria: South African Foreign Minister Dr Nkosazana Dlamini Zuma will on 5 March 2008 depart for Switzerland where she is scheduled to pay an official visit to Berne, Geneva and Zug from 6 to10 March 2008. Minister Dlamini Zuma will visit Switzerland within the context of South Africa's priority to strengthen relations with countries of the North with a view to consolidating the African developmental agenda.

Accordingly, the visit by Minister Dlamini Zuma to Switzerland aims to:
* further consolidate and strengthen the political relationship between South Africa and Switzerland to maximise benefits for South Africa
* further promote the implementation of the South African/Swiss trilateral co-operation in Africa utilising such frameworks as the Joint Declaration on Intent on Joint Co-operation in Africa, signed during the official visit of President Mbeki to Switzerland on 10 June 2003
* broaden and deepen economic relations and especially increased direct investment
* further strengthen co-operation on science and technology following the signing of agreement on scientific and technological co-operation signed in December 2007
* further ensure development co-operation between Switzerland and Southern Africa by encouraging the Swiss regional approach and
* enrol Switzerland as an important international partner and co-ordinate multilateral co-operation on issues of mutual interests.

Issues on the agenda of discussions between Ministers Dlamini Zuma and her Swiss counterpart, Foreign Minister of the Swiss Federation, Micheline Calmy-Rey are expected to include among others:
* The status of bilateral political and economic relations between the two countries. In May 2005 Switzerland declared South Africa as its most strategic partner outside the European Union (EU).
* Peace-keeping and conflict resolution in Africa including trilateral programmes in Africa between Switzerland and South Africa
* Developments in Europe and Africa and
* Other issues of mutual interest.

On conclusion of discussions between Ministers Dlamini Zuma and Micheline Calmy-Rey on 8 March 2008 both Ministers will co-sign a memorandum of understanding on strengthening mutual co-operation through a joint working group including a Joint Committee on Trade and Economic Relations. Thereafter Ministers Dlamini Zuma and Calmy-Rey will attend an International Women's Day event in Geneva.

While in Switzerland, Minister Dlamini Zuma is also expected to pay a courtesy call on President Pascal Couchepin, the current Swiss President, as well as meet with the High Commissioner for Human Rights of the Geneva based Human Rights Council, Ms Louise Arbour. Minister Dlamini Zuma will conclude her visit to Switzerland on 10 March 2008 by officially opening a trade investment road show organised by the embassy with the theme: "Business Opportunities in SA". The Minister will thereafter join President Thabo Mbeki in Mauritius to celebrate the country's Independence Day celebrations on 12 March 2008.

Bilateral economic relations

Swiss owned/managed companies in South Africa

There are around 150 Swiss owned/managed companies in South Africa. Swiss business has demonstrated a positive view of South Africa's Broad Based Black Economic Empowerment (BBBEE) policy, e.g. the recent Holcim deal which boasted a transactional value of R6,82 billion.

South African owned/managed companies in Switzerland

There are several South African companies operating in Switzerland. Those include South African Airways, De Beers Centenary, Compagnie Financière Richemont, Sappi Trenfor Trading, Decillion, Investec, Glencore, Louis Group, Dimension Data, Brait, Tradex Handels- und Beratungs AG, Octane Holding.

Bilateral trade relations

Provisional trade figures up to October 2007 indicate that South Africa continues to enjoy a positive trade balance between the two countries albeit slightly reduced from 2006. Trade turnover between South Africa and Switzerland amounted in 2006 to a total of R15,76 billion (+27,3% compared to 2005), making South Africa the most important trading partner in Africa for exports as well as imports. The value of South Africa exports to Switzerland went up 8% compared to 2005 to a total of R11,66 billion. Exports from Switzerland to South Africa decreased to R4,1 billion in 2006 (-9% compared to 2005).

Exports/imports in R million:
Year: 1999
Exports to Switzerland: 1,921
Imports from Switzerlan: 3,798
Balance: -1,877

Year: 2000
Exports to Switzerland: 3,670
Annual change: +107%
Imports from Switzerland: 4,459
Annual change: +17%
Balance: -789

Year: 2001
Exports to Switzerland: 4,128
Annual change: +12%
Imports from Switzerland: 4,032
Annual change: -10%
Balance: +96

Year: 2002
Exports to Switzerland: 5,567
Annual change: +35%
Imports from Switzerland: 4,765
Annual change: +18%
Balance: +802

Year: 2003
Exports to Switzerland: 5,743
Annual change: +3%
Imports from Switzerland: 3,483
Annual change: -27%
Balance: +2,260

Year: 2004
Exports to Switzerland: 7,270
Annual change: +27%
Imports from Switzerland: 3,095
Annual change: -11%
Balance: +4,175

Year: 2005
Exports to Switzerland: 7,785
Annual change: +8%
Imports from Switzerland: 4,504
Annual change: +46%
Balance: +3,371

Year: 2006
Exports to Switzerland: 11,660
Annual change: +48%
Imports from Switzerland: 4,104
Annual change: -9%
Balance: +7,556

Year: 2007 (Oct)
Exports to Switzerland: 7,937
Imports from Switzerland: 4,086
Balance: +3,851

Main exports in Rand value
Exports:
1. Natural or coloured Pearl, precious or semi precious metal
2003: 50,8
2004: 85,5
2005: 89,4
2006: 90,4
2007: 80,9
2. Arms and ammunition
2003: 5,5
2004: 5,8
2005: 3,3
2006: 2,9
2007: 10,8
3. Machinery and Mechanical Appliances
2003: 0,9
2004: 0,9
2005: 0,4
2006: 0,9
2007: 0,2
4. Prepared foodstuffs, beverages and wines
2003: 2,3
2004: 1,8
2005: 1,7
2006: 1,1
2007: 1,9
5. Vegetable products
2003: 0,8
2004: 1,0
2005: 1,1
2006: 0,9
2007: 0,6
6. Pulp of woods or of fibrous material
2003: 0,4
2004: 0,6
2005: 1,2
2006: 0,8
2007: 0,2

Main exports in Rand value
Exports
1. Optical, photographic, cinematographic, measuring checking and medical products
2003: 10,6
2004: 13,7
2005: 12,3
2006: 17,1
2007: 16
2. Machinery and Mechanical Appliance
2003: 37,8
2004: 31,8
2005: 25,5
2006: 30,7
2007: 29,1
3. Metals and Base Metals
2003: 3,0
2004: 3,0
2005: 3,0
2006: 3,6
2007: 4,8
4. Vehicle, aircraft and associated transport
2003: 2,9
2004: 4,8
2005: 1,6
2006: 3,2
2007: 3,6
5. Chemical products
2003: 32,2
2004: 32,2
2005: 28,7
2006: 31,7
2007: 35,7

TINSSA/Swiss Business Hub

The Swiss Business Hub was officially opened by the Swiss Minister of Economic Affairs, Ms Leuthard, during her visit to SA in May 2007. The opening of this Business Hub in Pretoria is another effort to promote investment in economic activity for Swiss companies in South Africa.

South Africa's missions in collaboration with OSEC–Business Network Switzerland launched a project called "Business Kick-off 2010" whose main objective was to promote potential business opportunities for 2010. The event brought together about 140 Swiss companies and was also attended by several South African companies to forge linkages and explore possible ventures. The Embassy in Berne is collaborating closely with the Euro 2008 Organising Committee in a project to promote the 2010 FIFA world cup in South Africa during this event in June 2008.
An invitation has also been extended to the 2010 Local Organising Committee to send officials to observe the management of the Europe 2008 event.

Swiss-South African Co-operation Initiative (SSACI)

The Swiss South African Co-operation Initiative (SSACI), founded in 2001, is a South African Development Finance Agency funded by Swiss and South African companies in collaboration with the Swiss agency for Development and Co-operation (SDC). SSACI's primary objective is to alleviate poverty by providing disadvantaged young South Africans with the knowledge and skills they require in order to earn a living. SSACI is currently concentrating on six provinces those are Limpopo, North West, Mpumalanga Gauteng, KwaZulu-Natal and the Free State. Each project receives a grant of R800 000 per year for a maximum of three years. In 2006 SSACI enrolled almost 4 000 unemployed high school graduates in skilled development training programmes within the SSACI partner companies.

Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
5 March 2008
Source: Department of Foreign Affairs (http://www.dfa.gov.za)