SOUTH AFRICA, ANGOLA MUST DIVERSIFY THEIR ECONOMIES, SAYS ZUMA

PRETORIA– President Jacob Zuma says South Africa and Angola must diversify their economies and challenged the two countries to lead industrialization efforts in Africa.

While Angola is an oil-rich country and South Africa is renowned for its minerals, there is a need for the two to wean themselves off reliance on revenues earned only from the extractive industries, he said when addressing a South Africa-Angola business forum here Friday, organized in conjunction with the State visit of Angolan President JoAPound o Manuel Goncalves Lourenco this week.

We have an opportunity to intensify industrialization through agriculture and agro-processing, particularly in meeting the nutritional needs of our burgeoning populations through food production and building sustainable agri-businesses, said President Zuma.

He added that for processing of raw materials to to take place, the two countries had recognized that they must provide conducive environments in their countries. Steps have been taken in this regard, chief among them, the visa waiver between the two countries, he added.

Beginning Dec 1, 2017, ordinary passport holders between these two countries traveling for a period of 30 days and less can travel without a visa. The two governments have also assured their private sectors that they were ready to support targeted efforts to increase the levels of investment which currently stands at only 8.0 billion Rand (about 565 million US dollars).

With energy highlighted as a key sector for the industrialization and manufacturing ambitions of the two economies, President Zuma urged South African companies to grab the opportunity with both hands. The Angolan government’s aim to reach national electrification levels of 60 per cent by 2025 was marked as a potential starting point for keen investors.

I would encourage the South African companies present here to consider maintenance, service and investment partnerships in the power generation, power transmission as well as pre-paid metering opportunities that are on offer from Angola.

Angola plans to reach its electrification target through an energy mix comprising hydro-electric power, natural gas and fossil fuels.

Forestry was also identified as a gold mine which had the potential to diversify the two economies to avoid over-reliance on one sector. Africa’s commercial forestry industry is worth approximately 39 billion USD. With this in mind, forestry offers an attractive alternative in agri-business investment, President Zuma said.

Currently, Angola is one of South Africa’s major trading partners on the continent. In 2016, South African exports to Angola stood at 8.2 billion Rand and imports from Angola amounted to 18 billion Rand, largely consisting of crude oil.

Although there are a number of South African companies involved in Angola in a variety of sectors including construction, mining, housing, retail, food and beverages, hotels and leisure, banking and medical services (rescue), the two presidents have identified untapped sectors, including in agriculture, mining, infrastructure development, energy and tourism.

The two governments assured the business sectors that they were deliberating on reducing transaction costs and safeguarding investments.

Source: NAM NEWS NETWORK

SOUTH AFRICA, ANGOLA MUST DIVERSIFY THEIR ECONOMIES, SAYS ZUMA

PRETORIA– President Jacob Zuma says South Africa and Angola must diversify their economies and challenged the two countries to lead industrialization efforts in Africa.

While Angola is an oil-rich country and South Africa is renowned for its minerals, there is a need for the two to wean themselves off reliance on revenues earned only from the extractive industries, he said when addressing a South Africa-Angola business forum here Friday, organized in conjunction with the State visit of Angolan President JoAPound o Manuel Goncalves Lourenco this week.

We have an opportunity to intensify industrialization through agriculture and agro-processing, particularly in meeting the nutritional needs of our burgeoning populations through food production and building sustainable agri-businesses, said President Zuma.

He added that for processing of raw materials to to take place, the two countries had recognized that they must provide conducive environments in their countries. Steps have been taken in this regard, chief among them, the visa waiver between the two countries, he added.

Beginning Dec 1, 2017, ordinary passport holders between these two countries traveling for a period of 30 days and less can travel without a visa. The two governments have also assured their private sectors that they were ready to support targeted efforts to increase the levels of investment which currently stands at only 8.0 billion Rand (about 565 million US dollars).

With energy highlighted as a key sector for the industrialization and manufacturing ambitions of the two economies, President Zuma urged South African companies to grab the opportunity with both hands. The Angolan government’s aim to reach national electrification levels of 60 per cent by 2025 was marked as a potential starting point for keen investors.

I would encourage the South African companies present here to consider maintenance, service and investment partnerships in the power generation, power transmission as well as pre-paid metering opportunities that are on offer from Angola.

Angola plans to reach its electrification target through an energy mix comprising hydro-electric power, natural gas and fossil fuels.

Forestry was also identified as a gold mine which had the potential to diversify the two economies to avoid over-reliance on one sector. Africa’s commercial forestry industry is worth approximately 39 billion USD. With this in mind, forestry offers an attractive alternative in agri-business investment, President Zuma said.

Currently, Angola is one of South Africa’s major trading partners on the continent. In 2016, South African exports to Angola stood at 8.2 billion Rand and imports from Angola amounted to 18 billion Rand, largely consisting of crude oil.

Although there are a number of South African companies involved in Angola in a variety of sectors including construction, mining, housing, retail, food and beverages, hotels and leisure, banking and medical services (rescue), the two presidents have identified untapped sectors, including in agriculture, mining, infrastructure development, energy and tourism.

The two governments assured the business sectors that they were deliberating on reducing transaction costs and safeguarding investments.

Source: NAM NEWS NETWORK