PORT ELIZABETH, February 19 (ANA) - The Minister of Trade and Industry, Dr Rob Davies, says the memorandum of understanding (MoU)between Mozambique and South Africa on economic cooperation is a milestone.
Davies was speaking at a signing ceremony in Cape Town with his Mozambican counterpart, Dr Ragendra Berta de Sousa, who signed on behalf of his country.
The MoU would provide a broad basis for cooperation between the two countries, which would assist in finding new approaches and strategies of consolidating, expanding and deepening areas of economic development, investment promotion, industrial, trade and technical cooperation, the minister said.
“The signing of this MoU is a key milestone in our bilateral relations and cooperation for a number of reasons.
"The first one is that it is detailed about the level of cooperation and specifically identifies a number of infrastructure projects that we will be collaborating on. Secondly, it is time-bound as it will last for only five years after which it can be renewed,” Davies said.
He also said that the MoU was a perfect fit for the dti's vision of investment-led trade into the rest of Africa and that a unit, Trade Invest Africa, had been established to drive this initiative.
“Mozambique is a very significant trading partner for South Africa and we have a sizeable surplus with the country," Davies said.
"By building investment relations we are creating the basis for a more equitable and more balanced pattern of trade in line with our approach of positioning South Africa as a development partner on the continent.
"That is the basis on which we cement the whole of our sustainable and long-term trade and economic relations throughout the continent,” he said.
De Soussa said the MoU would go a long way in strengthening economic relations between SA and Mozambique and contributing to increased collaboration, partnerships, trade and investment between the two countries.
Sectors that will be explored for cooperation under the MoU include agriculture and agro-processing; special economic zones and industrial parks; mining, processing and value-addition of natural resources; transport and communications infrastructure; pharmaceuticals; tourism; clothing and textiles; creative industries; and manufacturing.
Total trade between the two countries has remained strong over the past five years, increasing from R39.5 billion in 2013 to R50.8 billion in 2017.
- African News Agency (ANA)
