CEOs Forum to boost trade
Business Standard — May 31, 2005

Business heavyweights from the corporate and financial sectors in both India and South Africa are cementing ties and taking the initiative to invest in each other's economies. "Setting up of the CEOs' Forum last year has seen large deals worth billions of dollars take shape to boost trade and investment. The Indian government has also opened a business centre in Durban to cut down on the red tape and give a boost to investments between the two countries.

India's Ratan Tata and South African mining mogul Patrice Mot-sepe co-chair the India-South Africa CEOs' forum. The list of Indian CEOs who have joined the forum includes former Confederation of Indian Industry director general Tarun Das and Dr Krishna Ella, chairman of Bharat Biotech International. Motsepe, Tokyo Sexwale, Jay Naidoo, Vivian Reddy and Anant Singh are among the South African businessmen in the forum. Indian businessmen are increasingly gaining foothold in South Africa. Tata Motors and Mahindra & Mahindra have made great inroads into the South African automotive industry with the launch of new vehicles.

Tata Africa Holdings, a subsidiary of the Tata Group, is also exploring the possibility of taking controlling stake in South Africa's existing telecom company-a deal which could well be worth over rand 4 billion. Indian investment in South Africa is estimated at $ 100 million as per figures released by the Department of Foreign Affairs. The recent strategic alliance between South Africa Airways and Jet Airways is expected to see further growth in passenger and cargo traffic.

India today ranks as the 20th largest export and import market for South Africa with total bilateral trade between the two countries at rand 6.5 billion. According to the Department of Foreign Affairs, India exports goods worth rand 3.12 billion to South Africa and imports goods from there to the tune of rand3.38 billion. The recent airline partnership will help expand business opportunities and improve airline efficiency.

In tune with emergent economic trends, greater dialogue between businesses in India, South Africa and Brazil is being talked about especially in the areas of aviation, education and eliminating poverty. The respective business chambers of India and South Africa have already formally agreed on co-operation. Given the disparities in economic growth the African country has had to tackle, Dr Essop Pahad, minister in the presidency, Republic of South Africa, sees immense potential for Indian industry in South Africa.

He contrasted the notable 'second economy' that has emerged from a past scarred by apartheid. This he stated was in glaring contrast to a small section of population, who are economically on par with the best in the world. Such a phenomena is not too different from what the Indian economy has-the 'haves' and the 'have-nots'. Thus Pahad sees investment by Indian private corporates in South Africa as being relevant considering that Indian companies have faced and addressed similar economic dichotomies in their own hometowns.

Ratan Tata is understood to have spoken to the South African government on setting up community services like hospital care. Trade and tourism between the two countries is flourishing-with almost 25 per cent increase in Indian imports and the number of South African travellers to India last year.