SOUTH AFRICA – GUINEA ECONOMIC RELATIONS

SOUTH AFRICA-GUINEA BUSINESS SEMINAR

SUPPORTING INTRA-AFRICA ECONOMIC COOPERATION

Africa is rising and economic prospects are fast growing. Intra- Africa trade is growing.

But, the Continent is still faced with huge challenges though:-Lack of industrialization, poor infrastructure and mechanization-Lack of financial and non-financial capacities-Reliance on the export of raw materials (such as minerals and agri-products) rather than finished products

SUPPORTING INTRA-AFRICA ECONOMIC COOPERATION

- These challenges present Africa with significant challenges to expand trade within the Continent, with the rest of the world and also to attract FDI

- To turn the tide, at least at a bilateral level, South Africa and Guinea ought to strengthen economic relations and thereby supporting intra-Africa trade and investment.

SUPPORTING INTRA-AFRICA ECONOMIC COOPERATION

This means that the two countries should:-Strengthen economic cooperation (trade and investment) •Facilitate two way investment and trade flow to diversify products, development infrastructure and human & technical capacity etc.•South Africa should encourage its SOEs and business operators to invest in Guinea and provide necessary technical support to the government of Guinea to develop its economy.

ENABLING FRAMEWORK OF ECONOMIC COOPERATION

• During the 2nd Session of the JCC, South Africa and Guinea took a decision to negotiate a Memorandum of Understanding on Economic and Technical Cooperation.

• This MoU shall provide a framework for economic co-operation between the two countries and will be intended to stimulate two way private sector interest and involvement from both countries

ENABLING FRAMEWORK OF ECONOMIC COOPERATION

Furthermore, the MoU will enable the two countries to promote co-operation and exchange of experience, inter alia in the following areas:

•  Trade Promotion and Development;• Finance and Banking; Manufacturing;•Small and Medium Enterprises Development;• Agriculture and Agro processing; Tourism and Tourism Development;•Mining and beneficiation; Transportation;•Information and Communication Technology;•Science and Technological Development; and•Consumer Protection and Energy.

SOUTH AFRICA’S TRADE WITH GUINEA 2013

SA’s TOP FIVE IMPORTSFrom Guinea:

•Mineral fuels, lubricating and cooling pumps.

•Technically specified natural rubber (TSNR)

•Lumber, tropical wood.

•Medicaments

•Machinery.

SA’s TOP FIVE EXPORTSTo Guinea:

•Drilling machinery, nuclear reactors, boilers, etc.

•Electrical, electronic equipment

•Furniture, lighting, signs, prefabricated building materials

•Articles of iron or steel

•Miscellaneous edible preparations

SA trade with Guinea2009 2010 2011 2012 2013

Imports 9,826,042 155,880,480 300,485,460 35 337 365.00 3 256 609

Exports 263,715,751 256,361,757 336,783,545 378 088 508 261 918 964

TRADE STATS

Trade between the two countries remains very low. The true economic potential remains untapped. The trade figures clearly suggest that more needs to be done to increase trade relations between the two countries.

The South Africa – Guinea Memorandum of Understanding on Economic Cooperation should be utilised to address trade and investment challenges, including trade imbalances etc

CONCLUSION

• The two countries must continue to work together, in partnership to increase trade and investment flow.

• The two countries must strive to facilitate the creation of business partnerships and joint ventures to strengthen trade and economic cooperation in general.

• Fostering economic integration in the Continent, begins at a the bilateral level. The dti is committed to be part of the journey to facilitate outward and inward trade and investment between South Africa and Guinea.

THANK YOU