India, South Africa Agree To Strengthen Bilateral Cooperation

India and South Africa have agreed to strengthen bilateral cooperation in the medium, small, and medium enterprises (MSME) sector. This was agreed in a bilateral meeting between Jyotiradiya M Scindia Minister of state Commerce and Industries and Scindia is on a one day visit to South Africa heading a Confederation of Indian Industries (CII) business delegation to South Africa. Scindia held wide ranging discussions with Elizabeth Thabethe, Deputy Minister for Trade & Industry. During the discussions Scindia referred to the historical ties and their common struggle against colonialism and apartheid. Addressing the press after the meeting the Minister for State for Commerce & Industry said, "South Africa houses many prominent centers of learning and excellence. There is a scope for the universities and research and scientific institutions to enter into R&D collaborations.
The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups."
Bilateral Trade in 2010-11
The total trade between the two countries in the financial year 2010-11 was $10.6 billion, higher than bilateral trade target of $10 billion by the year 2012, set during the visit of South African President Jacob Zuma to India in June, 2010. A revised bilateral trade target of $15 billion has been set for the year 2014 during the meeting of Minister of Commerce and Industry, the Indian Government and the Minister of Trade and Industry, South African Government held on 10 January 2011. Scindia expressed hope that the India-SACU Preferential Trade Agreement (PTA) will be concluded soon, which will give a considerable boost to our exports in the Southern African region. South Africa is India's 2nd largest trading partner in Africa. There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods.
Addressing the business conference "India-South Africa: Developing Partnerships for Future" at Johannesburg, Scindia said "Our economies are placed in similar positions in the global economic order, and both our governments are faced with similar socioeconomic imperatives. It is imperative for us to step up the bilateral cooperation, intensify knowledge sharing and jointly address developmental issues, leading to inclusive growth in our respective economies. "Speaking about the potential areas of cooperation he mentioned that there are tremendous prospects for South African diamond mining companies to enter into long term contracts with the Indian diamond companies/rough purchasers like DIL, MMTC etc. and there exists tremendous scope for co-operation and JVs between Public Sector undertakings of the two countries in the coal sector. He mentioned about the significant contribution made by 1.5 million strong Indian Diaspora in South Africa. The business conference was jointly organized by the CII and the Business Unity South Africa (BUSA).
Structured Engagement and Interaction
Addressing the conference he mentioned that the 1st India-Africa Forum Summit in New Delhi in 2008, and the 2nd Summit, recently held in May 2011 at Addis Ababa, have designed a new architecture for a structured engagement, interaction and cooperation between India and Africa in the 21st century. At the 2011 Summit, our Prime Minister Manmohan Singh, made several announcements for the next three years, including the availability of $5 billion Lines of Credit; more than 22,000 scholarships and an additional $700 million to establish new institutions and training programs in consultation with the African Union and its institutions.
In a meeting organized by the Indian High Commission, he also interacted with the leading CEOs of Africa and explained to them the opportunity India offers due to its unique democratic and demographic dividend.
There is active contact between India and South Africa in multilateral fora, particularly at the NAM, Commonwealth, G77, G20, New Asian-African Strategic Partnership (NAASP), and World Trade Organization (WTO). Both countries are part of the India, Brazil and South Africa (IBSA) trilateral initiative. Both countries are currently non-permanent members of the UN Security Council (2011-2012). South Africa rendered pro-active support in the NSG decision to enable full civil nuclear cooperation with India. South Africa recently participated in the BRICS summit held in China in April 2011.

China Invites RSA To Join BRIC States As Full Member

Minister Maite Nkoana-Mashabane informed by the Minister of Foreign Affairs of the People's Republic of China, Yang Jiechi that BRIC (Brazil, Russian Federation, India, China) invites Republic of South Africa into BRICS (Brazil, Russian Federation, India, China, and South Africa) as a full member.

Agreement Reached
The Minister of International Relations and Cooperation of the Republic of South Africa, Maite Nkoana-Mashabane, received a telephone call from the Minister of Foreign Affairs of the People's Republic of China, Yang Jiechi informing her that China, in its capacity as the rotating chairperson of the BRIC formation, based on agreement reached between the BRIC Member States, invites South Africa as a full member into BRICS.

He further indicated that President Hu Jintao also issued a letter of invitation to President Jacob Zuma to attend the 3rd BRICS Leaders' Summit to be held in China. Minister Yang conveyed that China believed that South Africa's accession would promote the development of BRICS and enhance cooperation among emerging market economies.

Communication and Coordination
On behalf of President Zuma and the South African Government, Minister Nkoana-Mashabane expressed South Africa's sincere appreciation for the invitation to join BRICS, as well as the invitation from President Hu to attend the Summit. The Minister emphasized that South Africa was ready to step up communication and coordination with China and other BRICS Member States for mutually beneficial cooperation.

Minister Nkoana-Mashabane wrote to her BRIC counterparts in 2009 to raise the possibility of South Africa's BRIC membership. President Zuma subsequently met with BRIC leaders in the course of 2010. The rationale for South Africa's approach was in consideration of a matter of crucial importance to BRICS Member States, namely the role of emerging economies in advancing the restructuring of the global political, economic and financial architecture into one that is more equitable, balanced and rests on the important pillar of multilateralism.

Relations With Emerging Powers
In fact, the approach to intensifying relations with emerging powers and other countries of the South is, of course, through active and strong bilateral engagement. In addition, however, BRICS also see the NAM (Non-Aligned Movement) and the G77 as important for South-South interaction, especially within the framework of the United Nations.

At another level, it is seen the formation of the IBSA (India, Brazil, South Africa) and our membership of that body as a mechanism not only for enhancing our trilateral partnership with India and Brazil, but also as an important pillar for strengthening the muscle of the South in global affairs.

Enhanced Cooperation Efforts
It is believed that the IBSA will get a better balance, and become even stronger, with South Africa now as a member of the BRICS. However, it remains convinced that South Africa's diversified foreign policy objectives and interests allow for both groupings (IBSA and BRICS) to co-exist. It is the belief that the mandates of BRICS and IBSA are highly complementary.

South Africa and BRICS Member States already collaborated and will continue to collaborate closely in various international organizations and formations such as the United Nations, the G20 and the IBSA Dialogue Forum. All BRICS countries will serve on the UNSC [United Nations Security Council] in 2011 as permanent (China, Russian Federation) or non-permanent members (Brazil, India and South Africa), which augurs positively for enhanced cooperation efforts in terms of the salient issues of common interest.