Economic mission is ‘opportunity to expand trade and investment’
SA, Belgium look to strengthen existing ties and build further mutually beneficial partnerships, writes PENNY HAW
PRESIDED over by Her Royal Highness Princess Astrid of Belgium, a four-day Belgian economic mission to SA begins in Johannesburg on October 22 before travelling to Pretoria and Cape Town.
Her Royal Highness will be accompanied by the federal deputy prime minister and minister of foreign affairs, foreign trade and European affairs of Belgium, Didier Reynders; minister-president of the government of Wallonia and of the government of the Wallonia-Brussels Federation, Rudy Demotte; vice-ministerpresident and minister of innovation, public investment, media and poverty reduction, government of Flanders, Ingrid Lieten; and vice-president and minister of economy, SMEs, foreign trade and new technologies of the government of Wallonia and minister of higher education of the government of the WalloniaBrussels Federation, Jean-Claude Marcourt.
The mission, which aims to expand and deepen trade and investment between Belgium and SA, will also be attended by a delegation of more than 300 businessmen and women, educators, trade officials and journalists, several of whom will spend two days in Angola prior to arriving in SA.
Belgium is SA’s 12th largest global export destination and the fourth largest in the European Union. The country ranks as the sixth largest investor in SA, and it is the fourth biggest source of official development from Europe, with a total of €50m committed until 2016. In 2012, total exports from SA to Belgium reached R15.3bn and total imports R10.3bn. Belgium is also an important source of tourism for SA with a record tourism figure of 44,125 in 2012, placing the country in 15th position as a source of long-haul tourism.
Furthermore, in recent years Belgium has allocated €25m as official development assistance to SA for health, education and capacity building in the public sector. There is also extensive co-operation between the countries’ ports. Belgium is a global leader in ports management, transport and logistics, which are especially important to SA in the context of its strategic infrastructure projects. More than 1,000 South Africans have received training in port management in Belgium.
Addressing a meeting arranged by AWEX (the Wallonia foreign trade and investment agency office for foreign investors) at the IGRETEC (Intercommunale pour la Gestion et la Réalisation d’Etudes Techniques et Economiques) offices near Brussels South Charleroi Airport in Wallonia, Belgium, last month, SA’s ambassador to Belgium, Mxolisi Nkosi, welcomed the prospect of the forthcoming economic mission.
The visit comes on the eve of celebrations that mark 20 years of democracy in SA, which “makes it a good time to reflect on the progress made by the country and the successes it has enjoyed with Belgium as a strategic business partner”.
Although SA had experienced a knock-on from the European crisis, business with Belgium had bucked the trend and shown growth Just as Belgium positions itself as the gateway into Europe, SA is a gateway into Africa. The fact that SA is the only African country to be a member of G20 says a lot about the significance of the country as a global player
The meeting included Belgian businessmen and women already doing business in or with SA and others who are interested in the prospects thereof, most of whom are based in Wallonia, which is one of three regions of federal Belgium, the others being Brussels and Flanders.
Covering 17,000km2 and home to 3,4-million people, Wallonia is in the immediate vicinity of Brussels with direct access to the vast majority of the European market within a radius of 500km. It is home to some of the world’s leading brands such as Caterpillar, Ferrero, GlaxoSmithKline Biologicals, Kraft Foods, L’Oreal and Siemens.
In 2009, the government of Wallonia — in co-ordination with the government of the WalloniaBrussels Federation — implemented an ambitious action plan to take on economic, social and environmental challenges facing the region. The Priority Action Plan, also known as the Marshall Plan, which has a budget of €2.75bn (€1.15bn of which is alternative funding) for the period 20092014, is hinged around the following six priorities:
1. Human capital is an asset to be developed. Ongoing reforms (particularly for the development of lifelong learning) and greater coordination between education, training, employment and economic policies are pursued.
2. Competitiveness clusters and company networks are successes needed to be built on.
3. Make increased use of scientific research to pave the way for the future by shoring up investments in research and development, supporting all relevant scientific research, and reinforcing the role of research and innovation in the economy.
4. Set up a framework conducive to the creation of businesses and quality jobs. The objective here is to achieve the continuation and consolidation of existing policies that support entrepreneurial endeavours. The plan also aims to support the creation and development of new companies (with particular attention to SMEs). It furthermore nurtures policies that favour the globalisation of companies and the development of other territory for investors.
5. The EmploymentEnvironment Alliance, which is a future-looking strategy that aims to develop a series of actions designed to make the most of new opportunities triggered by the development of the green sector by way of innovation, training and employment.
6. The combination of employment and social wellbeing, which involves the championing of policies that promote employment, which looks at achieving better worklife balance.
It is in Wallonia that South African-owned producer and supplier of radioactive sealed sources and related equipment for industrial and medical uses, NTP Europe, is located.
The company, which is owned by NTP Radioisotopes SOC (a subsidiary of the South African Nuclear Energy Corporation (Necsa) based at the Pelindaba nuclear facility near Pretoria), is headed by MD Ivan Radebe, who was among those at the meeting at IGRETEC last month.
Others in attendance represented a diversity of sectors of industry including chemicals, metal, glass, life sciences, green technologies, mechanical engineering, automotive supplies, food and agriculture. Trade and investment commissioner Jean-Pierre Muller of the consulate general of Belgium Wallonia-Brussels commission in Johannesburg; representatives from AWEX and IGRETEC; and Nkosi’s colleagues from the South African embassy, economic minister, Wilhelm Smalberger, and marketing officer, Julian van Hille, were also present.
Ambassador Nkosi, who was appointed to the position in February 2012, pointed out that although SA had “experienced a knock-on from the European crisis”, business with Belgium had “bucked the trend” and shown growth. He added that although the key to the economic development between the two countries lies largely in continuing to create the necessary infrastructure to facilitate the free movement of goods, people and services, it is also being expedited by SA’s increasing prowess in “higher learning and sound technical know-how”.
“Indeed, one of SA’s biggest value propositions is that we sell at competitive prices. But, as is demonstrated by the leading role we are playing in the Square Kilometre Array project, we’re becoming increasing competitive in science and technology circles too,” he said.
The potential for the transfer of knowledge between SA and Belgium will be discussed in detail during the economic mission, which includes a delegation comprising academics, researchers and other members of Belgium’s top universities. They’ll meet with South African counterparts to discuss best practices in transferring, licensing and the commercialisation of innovative technologies generated by university staff and researchers.
“Just as Belgium positions itself as the gateway into Europe, SA is a hub of global economy and a gateway into Africa,” said Nkosi. “Also, the fact that SA is the only African country to be a member of G20 says a lot about the significance of the country and our position as a global player. The forthcoming mission is an excellent opportunity for us to strengthen existing ties and build more new, mutually beneficial partnerships.”
For further information about the Belgian economic mission to SA, call the consulate general of Belgium, WalloniaBrussels trade commission on 011 884-5581 or e-mail johannesburg@awex.org.za