South Africa mulls direct air links
Looks to invest in North East fishery:
The unrealised trade potential between South Africa and Sri Lanka is
exciting and shows 'the possibility to take bilateral trade between the
two countries into a new level.' Also both countries should commence
exchanging business level delegations with each other, agreed both South
Africa and Sri Lanka last week in Colombo.
Industry and Commerce Minister Rishad Bathiudeen meeting
High Commissioner of South Africa Geoff Doidge in Colombo.
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The mutual understanding emerged when High Commissioner of South
Africa in Colombo Geoff Doidge made a courtesy call on Industry and
Commerce Minister Rishad Bathiudeen in Colombo. Geoff Doidge directly
reports to the President of South Africa on Sri Lankan affairs.
"To reinvigorate bilateral trade, we need to start exchanging
business and industry delegations mutually. As an initial step, I invite
South African business and industry delegations to the mega export
exhibition Sri Lanka EXPO 2012, organized by the EDB to be held from
March 28 to 30, 2012 in Colombo", Minister Bathiudeen informed Doidge.
Minister Bathiudeen also discussed Sri Lanka's participation in the next
SAITEX (South African International Trade Exhibition). Sri Lanka took
part in SAITEX 2010, held from July 25 to 27, 2010 in Johannesburg, and
Sri Lanka Road Show in Johannesburg, Durban and Cape Town.
South Africa is the most important trading partner for Sri Lanka in
the Southern African region and the country is also considered as the
biggest export market for Sri Lanka in the South African region. There
is a favourable trade balance of 2.4 million for Sri Lanka in 2010.
Total exports from Sri Lanka to South Africa has increased over the past
eight years from US $ 10.41 million in 2002 to US $ 15.6 million in the
year 2009 recording a significant increase of 50%. In 2010 Sri Lanka's
exports to South Africa has increased by 33.5% to US $ 20.8 million. As
for imports, in 2002, imports from South Africa stood at US $ 29.72
million while in 2010 it fell to $ 17.90 million, reporting a positive
favourable balance for Sri Lanka.
"Among South Africa's exports are diamonds, gold, metals and
minerals, sugar, fruits, and corn. South Africa can invest in Sri Lanka
to benefit from Sri Lanka's FTAs with India and Pakistan and also our
regional trade agreements SAFTA and APTA, South Africa can use Sri Lanka
as a manufacturing base to reach the Asian region", Minister Bathiudeen
revealed.
"South Africa wants to establish direct air links with Sri Lanka and
we shall most welcome a direct airlift agreement to this end" responded
Geoff Doidge to Minister Bathiudeen. "We also like to see a coordinated
single window mechanism consisting of the EDB, the Industry and Commerce
Ministry, the Sri Lanka Customs etc for South Africa to interact with as
a single point of contact", Geoff Doidge said.
Revealing South Africa's investment priorities in the country, Geoff
Doidge said, "South Africa can introduce its well- known west coast
fishing industry companies to fishery industry in the North and the
East.
We are also willing to invest in the gem and jewellery sector, fruit
and juice processing and tourism. South Africa being a top gold and
diamond producer in the world, our potential investments, in Sri Lanka
on gem and jewellery, if made, can go a long way to bolster Sri Lanka's
gem and jewellery sector. Also with more than $ 10,000 per capita income
(on PPP), SA itself is a ready and a strong market for Sri Lankan gems."
Doidge added that Sri Lanka can also use South Africa as a base to
access other African markets. |