Parks Tau leads South African delegation to boost trade with India

Trade, Industry, and Competition minister, Parks Tau, is set to lead a delegation to Mumbai and Delhi to strengthen trade relations and deepen economic ties between South Africa and India, while also exploring new markets.

The visit, from August 25 to 29, is at the invitation of Indian Minister of Commerce and Industry, Shri Piyush Goyal. 

Tau is also scheduled to attend and speak at the 20th India-Africa Conclave.

South Africa's economy is under severe pressure due to a 30% US tariff on its exports and existing domestic protectionism, stifling competition and this dual challenge puts jobs, economic growth, and investment at risk. Tau and the Minister of Agriculture John Steenhuisen recently indicated that they are exploring alternative trade partners to mitigate these impacts.

According to the High Commissioner of the Republic of South Africa to India, Professor Anil Sooklal, the relationship with India is not so much about alternatives but also to diversify, so the nation does not rely on one or two trade partners.

He said this diversification was crucial, especially in light of the recent tariff hikes imposed by the US on South African exports. 

Sooklal emphasised that "India can ease the US tariff saga" and that Indian businesses are keen on investing in South Africa, seeing it as an entry point to sub-Saharan Africa.

India is currently South Africa's fourth-largest trading partner and fourth-largest consumer market. With India expected to become the second-largest consumer market by 2030, the potential for trade growth between the two countries is significant.

Sooklal noted that "trade with India can only grow," and the visit would provide an opportunity for South African businesses to tap into the Indian economy.

During the visit, Tau and his delegation will focus on several key sectors, including exploring opportunities for collaboration and investment in the mining and minerals sector while strengthening ties in manufacturing, particularly in areas like automotive and pharmaceuticals.

Sooklal said the minister would also identify opportunities for cooperation in the energy sector, enhancing trade and investment in agriculture, promoting tourism between South Africa and India and collaborating on pharmaceutical production and trade.

Tau will participate in the 20th edition of the India-Africa Conclave, where he will be a speaker at the opening plenary. 

The conclave provides a platform for Africa and India to engage on trade and economic issues, with over 30 countries confirmed to attend. 

Sooklal said the conclave is a well-established forum that will facilitate interaction between South African and Indian businesses.

During the visit, Tau will also hold bilateral meetings with Indian businesses to further strengthen trade relations between the two countries. 

“These meetings will provide opportunities for South African companies to explore new markets and partnerships in India… The visit is expected to yield significant economic benefits for South Africa.

“Indian businesses have already invested heavily in South Africa, with companies like Vedanta, Zinc International and Pepsico operating in the country. Pepsico South Africa now has five factories, while Mahindra South Africa recently inaugurated a new vehicle assembly facility in KwaZulu-Natal…Vedanta employs over 6000 people,” Sooklal said.

"With India poised to become an increasingly important player in the global economy, this visit is timely and crucial for South Africa's economic growth and development," said Sooklal.

DTIC spokesperson Kaamil Alli did not respond to questions as to who Tau would be taking to India as part of his delegation.

Cape Times