DIRCO Annual Report

Private-sector companies are also aware of the benefit of entering the African markets under the cover of our diplomatic missions. Missions have, as part of their strategy, their own initiatives but also remain available to support initiatives by private-sector companies or SOEs. The department and its missions are fully aware that, in the end, conclusion of business transactions will be between the business parties without them necessarily involving the missions. Unsurprisingly, missions have learnt with disappointment at times of highly anticipated business deals failing without privilege of knowledge. It is, however, expected that transactions will be concluded based on business decisions. For the period under review, the following activities are among the many undertaken to promote South African economic interest on the continent: The Mission in Lusaka hosted the South Africa-Zambia Trade and Investment Seminar on 9 and 10 July 2020, during which barriers to trade and investment were identified. The seminar followed up with an extensive trade and investment plan to promote economic relations between South Africa and Zambia, including five functional work streams established on the South African side as follows: Trade and Investment Facilitation; Agriculture and Agro processing; Energy; Mining; and Transport and Logistic Infrastructure (Road and Rail). Concrete projects have been identified by these work streams and will constitute the basis for discussions with Zambia. The Mission in Mozambique held a virtual Trade and Investment Seminar on 29 and 30 July 2020, which identified opportunities for trade and investment in various sectors, including electrical generation; renewable energy – wind, solar hydro – agriculture and agro-processing; infrastructure development; and manufacturing. In East Africa, the missions in Antananarivo, Nairobi, Moroni and Kigali were involved in economic diplomacy work and managed to engage local companies to promote South African value-added products. In the case of Madagascar, a company called Global Purchase was assisted to establish relations with South African oil producers. The company entered into negotiations for the export of soybean oil and sugar with two South African companies. A Malagasy company called Savonnerie Tropical was linked with, among other contacts, the Young Farmers Agricultural Business Association for possible importation of South African beef tallow products for the manufacturing of cosmetics in Madagascar.

The Mission in Kigali, in cooperation with the dtic, and supported by the Business Unit, held a virtual engagement with the Cosmetic, Toiletry and Fragrance Association of South Africa and the Rwandan Food and Drugs Authority. The engagement focussed on the removal of restrictions placed by Rwanda on South African imports into that country. In the case of the Nairobi Mission, a webinar was held and led by the South African Revenue Service (SARS) and its Kenyan counterpart. The webinar focussed on the implications of the Double Taxation Agreement signed in 2015 on businesses operating in each country. Representatives of business organisations from South Africa and Kenya participated in the webinar, as well as officials from the respective trade and investment authorities. The revenue authorities of both countries undertook to assist companies from each country with understanding the implications and implementation of the agreement, as they pursue their business interest in each other’s territory. During the second quarter, the Mission in Moroni engaged the South African retail company Kit Kat on the possible exportation of South African perishable and fresh products to the Indian Ocean nation. The engagement between the parties is ongoing. The department is working closely with the Mission in the Comoros and the Western Cape Tourism, Trade and Investment Promotion Agency (Wesgro) to facilitate a business opportunity related to the purchase of wine and olives farms in Paarl to supply wines and olives to the value of €300 million (R5.5 billion). According to the dtic, bilateral trade between South Africa and the Comoros was valued at R56 billion in 2019 in favour of South Africa. Owing to the food supply shortages presented by the COVID-19 pandemic in other countries, Mauritius requested the assistance of the Mission to establish relations with South African suppliers of potatoes, onions and garlic and other fresh produce products. The dtic and the Department of Agriculture, Land Reform and Rural Development were engaged to also facilitate the establishment of relations between South African suppliers and the Mauritian entities. The department participated in the virtual South Africa-Kenya Joint Technical Working Group Meeting on 26 August 2020. The meeting reviewed progress made since the Sixth South Africa-Kenya Joint Trade Committee, including in the following areas: market access issues (soda ash and tea), sanitary and phytosanitary issues, avocado as well as meat and

Annual Report 2020/2021 I Vote No. 6

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