Diplomacy Economy Finance Government Infrastructure Mozambique

Trade, investment growing between SA and Mozambique

South Africa and Mozambique have agreed to fast track investment in new mega project focusing on harnessing alternative sources of energy.

This emerged after bilateral talks between President Jacob Zuma and his Mozambique counterpart Filipe Jacinto Nyusi at the Union Buildings in Pretoria. Nyusi is on his first state visit to South Africa since assuming office in January this year. Mozambique has large reserves of natural gas, and most of which are not yet explored. South Africa is currently struggling with energy crisis which has severely affected the economy.

Economists estimates that the development of a natural gas industry could boost South Africa’s gross domestic product by between 138 billion rand and 251 billion by 2030.

President Zuma says new energy generation projects will yield socio-economic benefits for South Africa and Mozambique.

“We have directed the relevant ministers to identify and implement joint projects in the gas infrastructure and development. The message we want to communicate is simple and clear. We urge our private sector to invest in each other’s territory and help create job opportunities.”
(President Zuma)

In 2014, South Africa exported R32.6 billion worth of products to Mozambique, and imported products worth R11.3 billion. President Zuma says trade and investment are growing exponentially between the two countries.

Rhino poaching and human trafficking

Regional security challenges including rhino poaching and human trafficking have also topped the agenda during the official Mozambican state visit to South Africa.

The economic ties between the neighbouring states dominated discussions, with Mozambique by far South Africa’s biggest trading partner in Africa. But issues around national security affecting both nations also dominated discussions in the meeting.

Currently no extradition treaty or formal extradition agreement exists between Mozambique and South Africa.

Meanwhile, Defence Minister Nosiviwe Mapisa-Nqakula says both nations are working closely together to tackle cross-border security threats including Rhino poaching, human trafficking and illegal arms trade.

“There is another added challenge of rhino poaching so in that area there’s a lot of work being done with Mozambique by way of training of police by way of exchanging of information. But I also saw that there’s beginning to be discussions on issues of extradition,” says Mapisa-Nqakula.

Currently no extradition treaty or formal extradition agreement exists between Mozambique and South Africa.

South Africa also congratulated Mozambique for being elected as head of the regional body SADC’s security troika.

Source: SABC

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