(MENAFN- Khaleej Times) The collaboration between South Africa and the UAE in trade and investment is the cornerstone of the bilateral relationship says Mpetjane Lekgoro Ambassador of South Africa to the UAE in an interview with Khaleej Times.
Since the dawn of democracy in South Africa in 1994 the two countries have maintained a strong political and economic relationship and over time the UAE has become South Africa's biggest export partner in the Middle East and the sixth largest supplier of oil to South Africa.
"There has been a sharp increase in total trade between South Africa and the UAE from Dh3 billion in 2011 to more than double that amount - Dh7 billion in 2015" Lekgoro informs.
Major South African exports to the UAE include base metals and allied products foodstuff such as fruit and vegetables steel for construction and general engineering machinery electronics minerals defence equipment chemicals and plastic goods while 70 per cent of South Africa's imports from the UAE consist of crude oil.
Other exports to South Africa include machinery transportation equipment consumer electronics home appliances computer accessories and textiles.
"I believe that our growing trade relationship can be further expanded to other sectors. The excellent air links between our two countries position us to further enhance trade especially in fresh produce including fresh flowers" notes the ambassador.
The cross investment culture between South Africa and the UAE is gaining momentum and must be encouraged. He says: "At present 17 FDI projects were recorded as investments into South Africa from the UAE representing a total capital investment of Dh600 million. South Africa is also a significant investor in the UAE. Between January 2003 and June 2015 27 FDI projects from South Africa to the UAE were recorded representing a total capital investment of Dh1 billion. I truly believe that more can still be done."
A recent significant development was the takeover of the Al Noor Hospital Group by Mediclinic of South Africa on February 15 2016. Through this merger the enlarged Mediclinic International became the largest private healthcare company in the UAE (providing about 55 per cent of total private health care) and the eighth largest in the world. Mediclinic now operates five hospitals and 38 clinics with more than 600 inpatient beds in the UAE.
High-level visits
High-level visits between the two countries are taking place on a regular basis. The South African Minister of International Relations and Cooperation visited Abu Dhabi in August last year to inaugurate the SA-UAE Joint Ministerial Commission which will henceforth meet on an annual basis to review all aspects of the bilateral relationship.
Furthermore President Jacob Zuma accompanied by five cabinet members paid a working visit to the UAE in March 2016 during which he held fruitful discussions with His Highness Shaikh Mohammed bin Rashid Al Maktoum Vice-President and Prime Minister of the UAE and Ruler of Dubai.
South Africa and the UAE have signed eight bilateral agreements the latest being the important Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to income taxes. Various other agreements are being negotiated with some of them close to completion.
According to the ambassador the number of South Africans in the UAE ranges between 80000 to 100000. "They are mostly skilled professionals occupying management positions in an array of fields such as medical education hospitality engineering and construction including business people. There are only a small number of South African students in the UAE."
According to the ambassador tourism has also been given a boost. There is a growing flow of Emirati tourists and visitors from other expatriate communities based in the UAE to experience South Africa's abundant tourism attractions.
"The increase in tourism in both directions can partly be contributed to the excellent air links between our two countries. Both Etihad and Emirates airlines fly more than 50 direct flights per week from Abu Dhabi and Dubai to South Africa's major cities - Johannesburg Cape Town and Durban" he concludes.
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