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15 December 2008

Pretoria: South African President Kgalema Motlanthe, supported by Deputy Foreign Minister Fatima Hajaig, will on Wednesday, 17 December 2008 pay a working visit to Libya during which he will have bilateral political, economic and trade discussions with his Libyan counterpart Colonel Muammar Abu Minyar al-Qadhafi. President Motlanthe will depart from South Africa earlier on Wednesday, 17 December 2008.

President Motlanthe and his delegation will hold discussions with his Libyan counterpart within the context of strengthening bilateral political, economic and trade relations between the two countries.

Accordingly, issues on the agenda of discussions between Presidents Motlanthe and al-Gadhafi are expected to include, among others:
* The status of bilateral political, economic and trade relations between the two countries as well as ways in which to strengthen these relations.
* Political and socio-economic developments on the continent including the implementation of the African Union Government, New Partnership for Africa’s Development (NEPAD), as well as peace and security initiatives.
* Global political and socio-economic initiatives including the financial crisis and the Middle East peace process, and
* Other issues of mutual interest.

While in Libya President Motlanthe will lay a wreath at the El-Hani Battle Martyrs Memorial in Tripoli as well as visit the memorial of the victims of the US air raid on Tripoli in 1986. President Motlanthe is scheduled to return to South Africa on Friday 19 December 2008.

Bilateral Economic Relations
In terms of trade and investment relations many opportunities in the fields of construction, engineering, hydrocarbons, mining and energy, tourism, textiles, agriculture, communications and military cooperation exist. Eskom has formed a joint venture company, Global Electrical Services Company (GESCO) with the General Electric Company of Libya (GECOL). The joint venture aimed to assist GECOL with the rehabilitation of thermal power plants and to build capacity within GECOL in the area of plant rehabilitation and maintenance

A bilateral trade agreement and an agreement on the reciprocal promotion and protection of investment was signed during the first session of the joint binational commission in June 2002. From 2000 to 2005 the volume of bilateral trade remained more or less constant, with the trade balance heavily in South Africa's favour. In 2006, South Africa imported over R 2,4 billion in Hydrocarbons from Libya.

South African trade with Libya (exports) - R million (000)

2001: 30.669
2002: 69.308
2003: 40.776
2004: 44.816
2005: 38.489
2006: 40.432
2007: 51.231

South African trade with Libya (Imports) - R million (000)

2001: 2
2002: 3
2003: 46
2004: 126
2005: 77
2006: 2.429.657
2007: 412.181

Trade Balance - R million (000)

2001: 30.668
2002: 63.304
2003: 40.730
2004: 44.690
2005: 38.412
2006: -2.389.226
2007: -360.950
Source of figures: Department of Trade and Industry (www.thedti.gov.za)

Enquiries:
Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
15 December 2008