South Africa is working closely with Indonesia, Vietnam and Malaysia to establish free trade agreements that will propel the nation’s drive to diversify its markets.
This was announced by President Cyril Ramaphosa following a visit to the region over the past week, signifying a new chapter of robust economic partnership.
“(Southeast Asian) trade with South Africa is just some $22-25 billion. It needs to be much higher than that and the three countries agreed that we need to increase trade and … increase investment into each other’s countries. That is the main determination that we now go home with.
“South Africa will also focus on the regulatory framework (and) remove the various barriers. All three countries expressed a view to have a free trade agreement with South Africa which we are going to be working on very closely,” Ramaphosa said.
The future agreements will be founded on a vision of mutual prosperity, with increased trade and investment flowing both ways.
“We already export products like coal to some of these countries. We already export fruit and a number of agricultural products. They export technology to us and a number of finished goods and we want to broaden that. We want to make sure that we export more and more to them and they export more to us.
“South Africa is the most industrialised country (in Africa), and therefore, a gateway into the African continent. All three countries confirmed that they see South Africa as the manufacturing hub … the industrial hub of the African continent and a tradeway into the rest of the continent,” Ramaphosa said.
The visit to Southeast Asia – set amidst increasing global uncertainty – was a strategic mission aimed at deepening ties, solidifying relations, as well as expanding trade.
“We came to this region to diversify our markets – faced with the challenges many countries are now faced with of tariff impositions,” Ramaphosa said
The mission aimed to broaden and deepen trade ties and to revive old relationships at investment, business and trade levels.
“We do believe that we’ve been hugely successful,” Ramaphosa said.
Beyond economics, the journey to Southeast Asia provided a reminder of enduring historical bonds linking the four nations.
The region supported the anti-apartheid struggle and South Africa is home to the descendants of peoples of Malaysia and Indonesia who were brought to the country as indentured labourers.
“We depart with warm hearts, having been well received and having had deep and enduring talks with the heads of state and government in the three countries,” Ramaphosa said. Following the conclusion of the three-nation visit, he will now embark on a state visit to Switzerland. – SAnews.gov.za
