South Africa seeks deeper economic ties with India

More than 150 Indian companies have invested over $10 billion in the country and created 18,000 jobs, President Cyril Ramaphosa has said South Africa wants to deepen trade and investment ties with India in critical minerals, green industrialization, infrastructure, agriculture and the digital economy, South African President Cyril Ramaphosa has said.

Ramaphosa made the remarks after attending the 18th BRICS Summit in New Delhi, where he stressed that South Africa’s membership of the grouping provided an important platform to build political and economic ties that benefit the country.

In his weekly letter to the nation, Ramaphosa said more than a fifth of South Africa’s trade was with BRICS countries and that the grouping remained an important forum for investment and trade.

He added that South Africa had used the opportunity to strengthen business ties between the two countries.

Read more 20 years of BRICS: From Wall Street acronym to global power center India is South Africa’s fourth-largest trading partner, while more than 150 Indian companies have invested more than $10 billion (R243,7bn) in South Africa, creating employment for more than 18,000 South Africans, the president noted.

South African companies including Naspers, FirstRand Bank, Sanlam and Momentum also have significant investments in India.

Ramaphosa said the two countries held a South Africa-India CEOs Roundtable involving leaders from major Indian and South African companies. ”We highlighted various opportunities for investment and partnership in areas such as green industrialisation, critical minerals and beneficiation, infrastructure, agriculture and the digital economy.” He noted that Indian companies had welcomed the structural transformation taking place in South Africa, including reforms in the energy, logistics, telecommunications and water sectors, as well as changes involving visas and public digital infrastructure.

India’s strengths in pharmaceuticals and health technology could support South Africa’s ambition to expand local production of medicines and vaccines, while its expertise in information technology, financial technology and digital public infrastructure could also support the modernisation of South Africa’s systems and services, Ramaphosa said.

At the same time, South Africa’s critical minerals could support India’s growing renewable energy, battery and automotive industries, the president stressed.

Read more South Africa citrus exporters secure breakthrough in India South Africa wanted to turn the potential identified during the visit into practical partnerships and is keen to restore direct flights between South Africa and India, as well as to establish closer working relationships between business chambers in the two countries.