India-South Africa Trade Revival: New Initiative Launched

Johannesburg, Aug 8 (PTI) The Consulate General of India in Johannesburg on Thursday here launched a new initiative to revive the once very vibrant trade relations between India and South Africa until the COVID pandemic led to a slump.

“The India-SA Investment Network is an effort to bring our wider bilateral eco-system closer,” said Consul General Mahesh Kumar, who initiated the concept.

“We have about USD 19 billion annual trade and an estimated cumulative multiple investment of USD 19 billion. All of us are aware that this is way less compared to the potential. All of us would like this to grow, unlocking more opportunities for us,” Kumar said as he welcomed government leaders and top captains of industry from South Africa.

Kumar said there had been a simultaneous outreach programme to corporate South Africa and to corporate India to learn how this could be achieved.

“We found that while the overall mood was right and bright, the action was not taking place. We learned that there was a lack of awareness and information and a lack of avenues to find this. There were also lots of unknowns and a fear of the unknown,” he said.

“At the core of this initiative is addressing the lack of advocates, points of reference, contacts to give correct perspectives, present a truthful assessment of the opportunity and matching you with correct partners,” Kumar said.

He explained that the Consulate had partnered with leading institutions including the Gordon Institute of Business Science, Johannesburg Business School and the Wits Business School; as well as with business media for deeper reporting of opportunities.

“Now we are meeting the investment community. With this investor network, we want to create a support structure that helps Invest SA and Invest India. We strongly believe that the investment community's closer interaction over opportunities will foster many investments both ways,” Kumar said.

He said many start-ups in both countries would also benefit from this closer association.

“Going forward, we propose to organise deeper conversations on opportunities in India in renewables, IT, high-tech, infrastructure, capital markets, etc. We would also like our investors to get a good sense of opportunities here. The Investment Network could do that with ease.

The diplomat said trade needed to diversify from the current situation where a few commodities dominated the trade basket.

“Since trade has a positive correlation with investment, growing Investment ties will also help us grow our trade. Let's do some good business together,” Kumar said.

Yunus Hoosen, CEO of Invest SA in the Department of Trade, Industry and Competition, said there were lots of opportunities for two-way trade and investment.

“We should be seeing this economic relationship trebling and going beyond the figures that we see. This Network should be encouraging investment in South Africa as a regional manufacturing and services hub in the African continent, but we should be also encouraging investment in India. We can collaborate, compete and we can co-operate,” Hoosen said.

Addressing the issue of long delays in South Africa issuing visas to Indian business leaders, Hussein received loud applause when he said that this is to be addressed as a priority. Indian business leaders have for several years now lamented the difficulty of getting visas, some CEOs even opting to take investments elsewhere because of this

“We will reform the visa regime. We will make it easier for you to come to South Africa,” Hussein said.

Indian High Commissioner Prabhat Kumar outlined how the manufacturing sector in the country had changed dramatically from one of bureaucratic red tape to one in which it was easy to invest and do business.

“The government has also given incentives in many areas which you can look into,” Kumar said as he advised the business leaders to examine how South African media giant Naspers and insurance multi-national Sanlam had attained great success in India.

He also offered India's assistance to South Africa at no cost in procuring pharmaceuticals at low rates.

“The Indian government has established a very good network of how to procure medicines. Through this network, we can supply medicines to our people at the lowest cost. We are willing to share it free of cost with South Africa,” Kumar said.

He also appealed for greater public-private partnerships to grow investment between the two countries.

Anthony Costa , Investment Lead in the Private Office of President Cyril Ramaphosa, said South Africa had a lot to learn from India in making connectivity affordable.

"(India has shown) the economic boost that a country receives from affordable connectivity,” Costa said.